Automotive Instrument Cluster Market
Analysis by Type (Hybrid, Analog, and Digital); and Vehicle Type (Commercial, and Passenger Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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Analysis by Type (Hybrid, Analog, and Digital); and Vehicle Type (Commercial, and Passenger Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive instrument cluster market is estimated to garner a revenue of ~USD 18.0 Billion by the end of 2033 by growing at a CAGR of ~3% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 11.0 Billion in the year 2022. The growth of the market can primarily be attributed to the growing level of autonomy in vehicles worldwide. Furthermore, the automotive instrument cluster provides information that enables the driver to operate the vehicle without much intervention. For instance, as per the data reported, automotive vehicles are anticipated to account for more than 10 percent of car registrations by the end of 2030.
The automotive instrument cluster houses various displays and indicators that enable a driver to operate the vehicle. Several gauges such as speedometers, fuel gauges, odometers, tachometers, oil pressure gauges, and others, as well as various indicators, are responsible for warnings about system malfunctions. In modern cars, all of the sensors are connected to the electronic control unit (ECU). The ECU sends all the relevant information to the instrument cluster, while the instrument cluster provides drivers with all critical system information. With the recent advancements in automotive as well as electronics, the demand for automotive instrument clusters is on the rise amongst automobile manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive instrument cluster market during the forecast period. It is estimated that by 2030, electronics will make up around 50% of the cost of a new car.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~3% |
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Base Year Market Size (2022) |
~ USD 11.0 Billion |
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Forecast Year Market Size (2033) |
~ USD 18.0 Billion |
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Regional Scope |
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Growth Drivers
Growing Sales of Sensors – Nowadays, all of the sensors in a car are connected to the ECU, and the ECU is responsible for sending all the relevant information to the instrument cluster. Instrument clusters are connected to the vehicle with a wiring harness. Hence, the rising demand for sensors is expected to boost the global automotive instrument cluster market in the forecasted period. According to the estimated data, over 9.5 billion automotive sensors were sold globally in 2021.
Rising Installations of Speedometers –The number of speedometer installations has been increasing in order to keep a check on the speed limit of a vehicle, and display the mileage of the vehicle. The continuous display of the speed on the screen is expected to decrease the crash risk, and it is projected to boost the market’s growth in the upcoming years. According to the World Health Organization 2022 data, every 1% rise in mean speed produces a 3% increase in the serious crash risk and a 4% rise in the fatal crash risk.
Increasing Control Modules – Control modules help in detecting the warning lights that are displayed on the instrument cluster module. Therefore, increasing control modules in the vehicles are anticipated to surge the market’s growth. As per the data discovered, modern cars can have more than 100 control modules to control everything in the car.
Rising Demand for Advanced Driver Assistance System (ADAS) –ADAS provides driver vision at night through projecting enhanced images on the instrument clusters, and it is expected to increase the growth of the global automotive instrument cluster market. According to the data, ADAS was installed in approximately in ~1 billion cars in use worldwide in 2020.
Growing Demand for Cars – With the increase in demand for cars and surging number of registrations across the globe, it is predicted to rise the market’s growth over the forecast period. As per the data estimated for 2030, the sales of cars are expected to exceed 100 million units, worldwide.
Challenges
The global automotive instrument cluster market is segmented and analyzed for demand and supply by type segment into analog, digital, and hybrid. Amongst these segments, the hybrid segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand for instrument clusters along with the surge in the sale of hybrid clusters, followed by the increasing sale of hybrid vehicles worldwide. For instance, as per the data estimated, more than 5 million hybrid electric cars were sold in the United States through December 2020. Under hybrid cluster, a digital display system that comprises of automotive smart display including LCD screen that provides information related to the traffic data, temperature, and others in the form of numbers. Moreover, the analog system in the hybrid cluster consists of an odometer, and a speedometer that display the information through the deflection of a pointer on a scale. Therefore, it is projected to surge the segment’s growth in the market.
The global automotive instrument cluster market is also segmented and analyzed for demand and supply by vehicle type into commercial vehicles, and passenger vehicles. Out of these, the passenger car is expected to hold the largest share over the forecast period. The surging sale of passenger cars across the globe, and the increasing urban population, followed by the improving standard of living, are expected to boost the growth of the passenger vehicles segment in the market. Furthermore, the rising population percentage is further expected to increase the segment’s growth in the market. In January 2023, more than 300,000 passenger cars were sold in India as per the reported data.
Our in-depth analysis of the global automotive instrument cluster market includes the following segments:
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By Type |
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By Vehicle Type |
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The Asia Pacific automotive instrument cluster market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of a strong automobile network in the region, the rising trend amongst automobile users for advanced instrument clusters, as well as a growing production of vehicles. For instance, the total production volume of vehicles in China was more than 2.5 million in September 2022 as compared to ~2.3 million in August 2022. Furthermore, there have been growing initiatives taken by the government in countries such as Japan, and China to improve the automotive industry, and it is expected to increase the market’s growth in the region. Moreover, there is high demand for automotive including electric vehicle in which hybrid or digital instrument clusters are installed, that is predicted to further contribute to the growth of the market in the region.
The European automotive instrument cluster market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market can be attributed majorly to the increasing presence of luxury cars along with the adoption of digital and hybrid instrument cluster in the countries such as the United Kingdom. Moreover, there has been an advancement in vehicle technologies that is further anticipated to surge the growth of the European region in the market. In addition, there are presence of luxury cars manufacturers, along with the rising purchasing power of the people, that is predicted to boost the region’s growth in the market.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing sales of sensors, rising demand for advanced driver assistance system (ADAS) are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~3% over the forecast period, i.e., 2023 – 2033.
Ans: Concern about parallax error in an analog gauge, high cost of research & developments is estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Continental AG, Qualcomm Technologies, Inc., Pioneer Corporation, Visteon Corporation, Denso Corporation, Aptiv Global Operations Limited, Panasonic Corporation, BlackBerry Limited, Infineon Technologies AG, Robert Bosch GmbH, Biotech Automotive Electronics (Wuhu) Co., Ltd., and others
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, vehicle type, and by region.
Ans: The hybrid segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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