Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Next-Generation Digital Cockpit Market size was valued at USD 28.4 billion in 2024 and is projected to reach USD 110.2 billion by the end of 2037, rising at a CAGR of 11% during the forecast period, i.e., 2025-2037. In 2025, the industry size of next-generation digital cockpit is evaluated at USD 31.5 billion.
The next-generation digital cockpit market is expanding as automotive manufacturers shift towards software-defined platforms. Car makers pursue smooth infotainment, navigation, and ADAS integration which is driving demand. For instance, NVIDIA launched its DRIVE Thor platform in March 2024, incorporating generative AI along with cockpit functionality onto a single chip. Governments also promote innovation, such as Japan’s Digital Transformation programs, which stimulate innovation in automotive technology. Voice assist, over-the-air software updates, and real-time customization shape cockpit competitiveness. Car makers are more interested in upgradable modularity than in fixed legacy designs. The trend places digital cockpits as strategic differentiators in cars of the future.
User-centric experiences are today central to cockpit design strategy in both the automotive and mobility industries. In November 2023, Visteon and Qualcomm partnered to introduce SmartCore and Snapdragon-enabled immersive digital cockpits. Cloud connections, AI customization, and multi-display technology are transforming dashboards. Sustainability factors also guide materials selection and energy-saving designs. As autonomous and connected vehicle agendas are being made a top national priority, digital cockpits are catapulted to become compliance enablers for regulation. The integration of smart home ecosystems in connected cars is taking shape. Businesses are making significant investments in adaptable architectures to enable cockpit systems across changing EVs as well as AVs.
Next-Generation Digital Cockpit Market: Growth Drivers and Challenges
Growth Drivers
- Rise of software-defined vehicles and OTA integration: Automakers are designing cars more like digital platforms that need dynamic cockpit over-the-air updates. Marelli joined forces with Sibros in January 2023 to integrate OTA solutions into its Mind-Xp Cockpit Domain Controller. OTA functionality makes cockpit investments future-proof through real-time feature upgrades. Constant software updating enables security patches, infotainment enhancement, and dynamic UI customization. Recall costs are saved, as well as customer loyalty, by OEMs through OTA-enabled cockpits. OTA is also instrumental in keeping regulatory compliance in data-centric ecosystems in check. Digital cockpit evolution comes hand in hand with the increasing software-defined vehicle structures.
- Combining AI with generative intelligence in in-vehicle experiences: AI is revolutionizing how drivers interact with cockpit interfaces, from customization to predictive diagnosis. In March 2025, Qualcomm and Visteon reimagined intelligent cockpits through the power of generative AI to maximize user experience. Autonomous driving dashboards, mood-sensitive UIs, and real-time voice assistants come to the forefront. Seamless multimodal operation across touch, gesture, and voice input becomes a reality through AI. Predictive diagnosis and health checks are more and more a part of digital cockpits. Consumers demand smartphone-like, intuitive, personalized experiences. As cars become personal digital environments, cockpit transformation through AI goes into overdrive.
- Expanding collaborations between technology majors and auto manufacturers: Strategic partnerships are accelerating innovation in cockpit ecosystems in digital space. In November 2023, Amazon reached a partnership agreement with Hyundai to incorporate Alexa and AWS cloud services in Hyundai cockpit platforms. Cross-industry partnerships combine automaking with technology know-how in areas such as AI, cloud, and edge computing. These partnerships enable end-to-end connected environments in areas such as entertainment, navigation, and smart home controls. Such joint development also shortens time-to-market for new cockpit solutions. Entrance by technology players continues to fuel feature upgrades and app-store-like experiences. Competitive intensity forces OEMs to differentiate through smarter, richer cockpit environments.
Challenges
- Data privacy and security issues in connected cockpits: With cockpits being made into centers of sensitive data, cybersecurity threats worsen. Driver safety and data abuse are threatened by unauthorized access to cockpit tools. Regulatory agencies increasingly require strong compliance with data protection in vehicles. Vehicle networks and over-the-air update mechanisms have to be secured by OEMs. Constant threats demand end-to-end encryption, intrusion detection, and patch management. Businesses have to invest heavily in multi-layered cybersecurity solutions to maintain consumer trust.
- Complicated hardware-software integration impacts commercialization: Achieving harmony between high-end hardware and adaptable, updatable software poses a challenge for cockpit suppliers. The integration of AI, high-end computing, and multi-display setups in real-world applications remains a challenge. Ensuring high-level performance across legacy and next-gen platforms calls for vast testing. Regulatory variability across worldwide markets hinders standardization across markets. Slow validation processes hamper new cockpit launches. Powerful virtual testing environments are essential to cutting time-to-market while ensuring high performance levels along with high levels of safety standards.
Next-Generation Digital Cockpit Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11% |
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Base Year Market Size (2024) |
USD 28.4 billion |
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Forecast Year Market Size (2037) |
USD 110.2 billion |
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Regional Scope |
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Next-Generation Digital Cockpit Segmentation
By Display (LCD, TFT-LCD, OLED)
TFT-LCD segment is estimated to hold next-generation digital cockpit market share of more than 57% by 2037, as it is preferred for its relative price, clarity, and longevity. SmartThings Pro and other new display technologies were revealed by Samsung in June 2023, emphasizing TFT-LCD benefits in vehicle applications. These displays have high brightness, responsiveness, and power efficiency, along with competitive costs. TFT-LCDs are highly used by OEMs in mid-tier to high-end models. Continued sensitivity improvements in touchscreen capabilities, along with increasing color vividness, contribute to extending market longevity. TFT-LCDs accommodate changeable dashboard configurations, which are essential in flexible cockpit designs. The segment has a maturing supply chain, as well as continuing to benefit from innovation.
Vehicle Type (Passenger Vehicles, Commercial vehicles)
In next-generation digital cockpit market, passenger vehicles segment is set to account for revenue share of around 77% by 2037, reflecting overall digitization trends in consumer mobility. In January 2024, Hyundai Mobis chose BlackBerry QNX to power its next-generation digital cockpit platform, aimed primarily at passenger cars. Premium in-vehicle experiences are driven by increased consumer demand, driving cockpit innovation. Urbanization patterns and EV uptake fuel compact and mid-size passenger cars' penetration of digital cockpits. Strong uptake of infotainment, navigation, and AI-enabled safety components drives demand. Passenger vehicle platforms are more scalable to deliver cockpit software upgrades, as well as feature additions. The integration of autonomous driving in the future is expected to further spur growth.
Our in-depth analysis of the global next-generation digital cockpit market includes the following segments:
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Equipment Type |
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Display |
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Vehicle Type |
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Customize this ReportNext-Generation Digital Cockpit Industry - Regional Scope
APAC Market Analysis
Asia Pacific next-generation digital cockpit market is anticipated to dominate revenue share of over 47% by 2037, driven by dramatic EV sales volumes in China and India. In March 2025, ECARX made cockpit supply commitments to Volkswagen, deepening its reach in China’s thriving motor industry. OEMs aggressively adopt AI, cloud, and 5G in cockpit ecosystems. Middle-class customers who are on the rise demand luxury experiences, driving feature pervasiveness. EV affordability drives in China and India make digital cockpits a key to differentiation. Policy environments favor V2X connectivity and autonomous technology pilot programs. Regional vendor hubs make cockpit components more affordable and scalable.
Domestic technology players collaborate with automakers to expedite cockpit innovation in China. Leapmotor adopted Qualcomm’s Snapdragon Cockpit Platform in March 2024, focusing on AI and immersive experiences. Chinese OEMs such as XPeng, NIO, and BYD aggressively introduce multi-screen, AI-infused interiors. Government-imposed requirements for V2X enablement drive cockpit upgrades as an indirect catalyst. Competition in EVs accelerates smart UI, digital dashboard, and personalization of infotainment development. Public sector smart city development provides real-world deployment opportunities for next-gen cockpit solutions. China’s leadership dictates that cockpit hardware-software standards have a profound impact on worldwide automotive trends.
India next-generation digital cockpit market in electronics grows along with urbanization and electrification waves. Panasonic’s growth through Virtual SkipGen in AWS Marketplace in March 2025 demonstrates India’s increased demand for cockpit system simulation. Domestic OEMs such as Tata Motors and Mahindra make connected cockpit features a mandated option in EV launches. FAME-II and PLI schemes drive indirect acceptance of digital components. Middle-class aspirations fuel infotainment system improvements in lower segments as well. Telematics-integrated cockpits are adopted by fleet operators to enhance operational efficiency. Affordability combined with smart technology defines India’s cockpit innovation strategy.
North America Market Analysis
North America next-generation digital cockpit market is likely to observe growth of more than 10% through 2037. U.S. OEMs are focusing on integrating drive assist, cloud services, and smooth infotainment solutions. For instance, in January 2025, CES featured significant advancements in AI-enabled digital cockpits through platforms such as Qualcomm Snapdragon and NVIDIA DRIVE Thor. Federal regulatory initiatives for cybersecurity in connected cars facilitate secure cockpit developments. Demand for smart, personalized mobility experiences from customers propels further cockpit complexity. The EV craze fosters further demand for next-generation digital interfaces. Strategic collaborations between tech companies and automakers drive quick cockpit ecosystem development.
The U.S. holds leadership positions in cockpit software innovation, led by tech companies and electric vehicle (EV) centric automakers. In January 2024, Hyundai and Amazon announced a partnership integrating Alexa into U.S.-market-oriented models, featuring smart cockpit capabilities. Tesla, Rivian, and Ford are leading in AI-infused cockpit offerings. Vehicle architectures defined by software quicken scalable cockpit implementation. Furthermore, consumer demand for hassle-free smartphone integration into cars continues to be a leading growth driver. Industry regulatory directions focusing on data privacy and protection are in tune with cockpit system design. Flexible finance schemes, along with subscription cockpit upgrades, are set to become popular in the U.S. markets.
Canada next-generation digital cockpit market gains from expanding EV penetration as well as connected vehicle programs. Aptiv’s USD 45 million investment in its Chennai (exporting globally) base in February 2025 testifies to the intensifying demand for North American cockpit technology. Canada’s ZEV mandates complement further cockpit system uptake, optimized for electrification. OEMs are designing cockpits specifically for extreme weather operability. Public and fleet’s electrification policies promote smarter dashboards along with remote system diagnosis. Data interoperability standards in Canada promote ecosystem cooperation. Rising consumer focus on tech-enhanced interiors supports market growth in premium and mainstream segments.
Companies Dominating the Next-Generation Digital Cockpit Market
- Hyundai Mobis
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Continental AG
- Faurecia SE
- Garmin Ltd.
- HARMAN International
- Visteon Corporation
- Robert Bosch GmbH
- Aptiv PLC
- DXC Technology Company
The next-generation digital cockpit market is highly competitive, fueled by innovation at all hardware, software, and connectivity levels. Continental AG, Denso Corporation, Faurecia SE, Garmin Ltd., HARMAN International, Hyundai Mobis, Panasonic Corporation, Pioneer Corporation, Visteon Corporation, Robert Bosch GmbH, Aptiv PLC, and DXC Technology Company are top players in this space. Suppliers are focused on developing modular architectures, AI-enabled customization, and cloud-enabled upgradability. Strategic partnerships among tech companies and OEMs are becoming more essential to ensure differentiation in cockpit solutions.
Garmin and Qualcomm introduced a new Snapdragon Cockpit Elite-enabled solution in April 2025, featuring rich graphics, AI, and smooth infotainment integration. The move strengthens the trend towards immersive, connected, and smart cockpit experiences in the industry. Collaborations like Hyundai-Samsung SmartThings and Unity-Mazda indicate the growing power of non-automotive players in shaping developments in HMI. Innovation in digital cockpits remains at the core of automakers' differentiation strategies. Technology integration, regulatory adherence, and consumer-centric design ensure cockpit disruption continues in the sector.
Here are some leading players in the next-generation digital cockpit market:
In the News
- In April 2025, DXC Technology partnered with Ferrari to develop the driver Human-Machine Interface (HMI) for next-generation vehicles. The collaboration focuses on creating intuitive and personalized cockpit experiences through advanced software engineering and design.
- In March 2025, ECARX announced plans to provide digital cockpit solutions to Volkswagen Brazil and Skoda, expanding its presence in the global automotive market. The partnership includes integrating ECARX's Antora 1000 platform, featuring voice recognition and navigation services.
Author Credits: Saima Khursheed
- Report ID: 7573
- Published Date: May 06, 2025
- Report Format: PDF, PPT
