The global market for Automotive Cockpit Electronics estimated at US$26 Billion in the year 2020, is projected to reach a revised size of US$39.5 Billion by 2026, growing at a CAGR of 7.3% over the analysis period, predicts ResearchandMarkets.
Buoyed by increasing use of advanced technology, the share of automotive electronics components in vehicles in terms of vehicle cost has gradually increased from just 8-10% to over 30% in the recent years, providing a significant scope of opportunity for automotive cockpit electronics.
Growth in the global market is set to be driven by increasing consumer preference for convenience features and enhanced user experience. Rising disposable income and demand for autonomous vehicles are prompting people to invest in latest car models with advanced electronics that allow users to view information in the line-of-sight, like navigation.
The integration of sophisticated technologies and government regulations on telematics and increasing connectivity aid in market expansion. The market growth is also bolstered by increasing use of innovative technologies like head-up display and in-car navigation systems.
Infotainment & Navigation, one of the segments analyzed in the report, is projected to grow at a 8% CAGR to reach US$14.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Information Display segment is readjusted to a revised 7.4% CAGR for the next 7-year period.
This segment currently accounts for a 25.6% share of the global Automotive Cockpit Electronics market. Intuitive, ergonomic, and easy to operate vehicle function controls and human-machine interface are diluting the fears over driver distraction caused by vehicle entertainment systems, thereby making infotainment systems mainstream automotive systems.
The U.S. Market is Estimated at $7.5 Billion in 2021, While China is Forecast to Reach $7.7 Billion by 2026
The Automotive Cockpit Electronics market in the U.S. is estimated at US$7.5 Billion in the year 2021. The country currently accounts for a 27.85% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$7.7 Billion in the year 2026 trailing a CAGR of 8.6% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.2% and 6.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.7% CAGR while Rest of European market (as defined in the study) will reach US$8.4 Billion by the end of the analysis period.
The US witnessed high penetration rate for automotive navigation systems owing to robust uptake within the light commercial vehicles segment and changing consumer preferences. The Asia-Pacific region is poised to gain from increasing consumer demand and rising vehicle production. The region is receiving notable contribution from India and China, representing major automobile hubs on the basis of vehicle sales and production.
Instrument Cluster Segment to Reach $7.9 Billion by 2026
The instrument cluster features the speedometer along with user-friendly digital devices. Demand for instrument cluster is supported by increasing demand for quality infotainment, riding experience and safety. In the global Instrument Cluster segment, USA, Canada, Japan, China and Europe will drive the 6.6% CAGR estimated for this segment.
