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The Automotive Reconfigurable Instrument Cluster Market size is forecast to increase by USD 2.50 billion, at a CAGR of 15.19% between 2023 and 2028. The accelerated growth of the market is due to various factors, including growing demand for enhanced vehicle interiors and immersive driving experience, flexibility, integration ability, and customization features at no additional cost and increasing focus on the integration of ADAS in vehicles.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Flexibility, integration ability, and customization features at no additional cost are notably driving the market growth. Reconfigurable instrument clusters can be customized without the need for additional hardware. Several automotive OEMs and Tier-1 players are working on the software to enhance the functionalities of digital instrument clusters. The flexibility of products to display information as per the user's needs leads to the elimination of otherwise unnecessary or redundant information and retains only important information. Also, the predefined display option modes (as set by the supplier/automotive OEM) allow users to modify the parameters that need to be displayed as per their driving needs, which are associated with their driving style. This may include fuel economy meter, performance, and autonomous modes.
Moreover, the ability of the product to integrate with in-vehicle navigation systems and ADAS allows the users to focus on a single screen while driving, thereby enhancing convenience and reducing distraction. Fully reconfigurable instrument clusters allow adjustments to the design of the display as per the vehicle's interiors. They are flat and, therefore, occupy less space for displaying information. This gives automotive OEMs multiple options to enhance the design of the instrument cluster as per the vehicle interiors. Such features that enhance convenience will drive the market during the forecast period.
The development of superior graphic displays is a significant challenge hindering market growth. Reconfigurable instrument clusters employ sophisticated technology to allow the customization of the information displayed on the cluster. As a result, the reconfigurable instrument cluster market is one of the fastest-growing markets in the automotive electronics segment. The development of sophisticated 2D and 3D graphic instrument clusters is becoming crucial for increasing the adoption of instrument clusters globally. Prominent vendors in the market are developing innovative products, thereby driving the success of reconfigurable instrument clusters.
For instance, a prominent players in the market, Visteon Corp. launched multilayer display instrument clusters, which will become ideal fitments in luxury vehicles in the coming years. Moreover, companies play an instrumental role in shifting the modern vehicle cockpit from the traditional one to a fully digital cockpit. Therefore, the development of superior graphics interfaces will be a vital trend in the market during the forecast period.
Cost pressure on automotive OEMs leading to low penetration of reconfigurable instrument clusters is a significant challenge hindering market growth. In the automotive industry value chain, automotive OEMs are liable for most of the warranty costs and price pressure from the demand side. With the increasing adoption of new advanced technologies in vehicles, the bargaining power of automotive OEMs for certain equipment and technologies has declined. Automotive OEMs are subject to heavy cost pressures due to the dynamism of the regulatory environment and the changing demands of consumers.
Moreover, high-cost pressures are making it difficult for automotive OEMs to introduce advanced features from the high-end car segment to the low-end without hiking their sticker prices. Automotive reconfigurable instrument clusters are still at a nascent stage and are expensive, thereby challenging their introduction beyond high-end segment cars. However, the cost of any new technology is bound to drop once it enters mass production by attaining economies of scale. Companies must focus on attaining economies of scale to maximize the adoption of automotive reconfigurable instrument clusters during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BlackBerry Ltd. - The company offers automotive reconfigurable instrument cluster operating systems such as QNX Neutrino real-time operating system to ensure the ideal combination of performance, security and reliability in mission-critical systems.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The partially reconfigurable instrument cluster segment is estimated to witness significant growth during the forecast period. The automotive partially reconfigurable instrument cluster, which forms a feature of the digital instrument cluster, will likely be the predominant contributor to the market. This is because of the wide use of digital instrument clusters by vehicle OEMs to bring product differentiation in different car variants.
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The partially reconfigurable instrument cluster was the largest and was valued at USD 1.36 billion in 2018. Developed regions worldwide, including Europe and North America, will attain significant penetration rates for partially reconfigurable instrument clusters in most car variants belonging to the mid and luxury segments. This will reduce the market share of analog instrument clusters by the end of the forecast period in these regions. In countries such as Germany, the UK, and France, the penetration of partially reconfigurable instrument clusters is expected to be high during the forecast period. In terms of volume, the automotive partially reconfigurable instrument cluster will be the key contributor. Factors such as improving economic situations, evolving lifestyles, and rising income have resulted in higher demand for new, fuel-efficient, and technologically advanced cars equipped with more safety features. Hence, all these factors are responsible for the growth of the partially reconfigurable instrument cluster segment of the market during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. North America is a major contributor to the market owing to the greater penetration of hybrid instrument clusters in the passenger vehicles market in the region. The US drive toward autonomous vehicles will likely boost the adoption of automotive fully reconfigurable instrument clusters. It is also the first country to introduce a norm that permits the testing of automated vehicles; however, only a few states have passed the bill. This creates an opportunity for advanced technologies that would enable automated driving and signifies the region readiness to upgrade to higher automation levels. Such upgrades to higher Society of Automotive Engineers (SAE) levels of automation will likely have a positive impact on the market for automotive fully reconfigurable instrument clusters in North America.
In addition, the US government's drive to curb road fatalities may fuel the adoption of automotive reconfigurable instrument clusters if they are marketed accordingly by automotive OEMs and suppliers. Furthermore, automotive sales in the country regained their pre-recession levels in 2014, supported by economic stability and growth in consumer confidence. For instance, GDP growth in the US fell to -3.41% in 2020 compared to 5.68% in 2021. This is expected to continue in the future and foster the growth of the luxury car industry, thereby driving regional market growth during the forecast period.
The market is evolving with advancements tailored for contemporary driving experiences. Enhanced driving modes and an immersive display system equipped with high resolution contribute to heightened comfort and compliance with stringent government regulations. Considerations of consumer purchasing power and fluctuating oil prices impact the market dynamics, influencing the shift from traditional vehicles with internal combustion engines (ICEs) to the rising prominence of EVs. Evaluating the total costs of ownership becomes pivotal in decision-making, affecting the supply chain logistics and prompt deliveries for vehicle manufacturers in their growth phase. The integration of innovative features like the 3D Cockpit enhances the driver experience with captivating 3D images facilitated by advanced camera technology and sophisticated human-machine interaction.
Moreover, the inclusion of an advanced infotainment system capable of streaming HD movies underscores collaboration with leading display manufacturers like Genesis, pioneering the development of a natural 3D light field instrument cluster. Noteworthy contributions from companies like Visteon Corporation, particularly in collaborations with models like PEUGEOT 208 featuring the i-Cockpit and incorporating TFTs for engaging 3D animations, position the market at the forefront of automotive innovation.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Reconfigurable Instrument Cluster Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.19% |
Market Growth 2024-2028 |
USD 2.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
14.72 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BlackBerry Ltd., Caerbont Automotive Instruments Ltd., Continental AG, DENSO Corp., Hyundai Motor Co., ID4Motion, International Automotive Components Group SA, Marelli Holdings Co. Ltd., Nippon Seiki Co. Ltd., NVIDIA Corp., NXP Semiconductors NV, Panasonic Holdings Corp., Pricol Ltd., Renesas Electronics Corp., Robert Bosch GmbH, Stoneridge Inc., Texas Instruments Inc., Toshiba Corp., Visteon Corp., and Yazaki Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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