The same is projected to reach a revised size of US$39.5 Billion by 2026, growing at a CAGR of 7.3 per cent over the analysis period
Led by countries such as Australia, India, and South Korea, the market of cockpit electronics (automotive) in Asia-Pacific is forecast to reach US$1.3 Billion by the year 2026. Amid the COVID-19 crisis, as per a report by Global Industry Analysts, the global market for automotive cockpit electronics was estimated at US$26 Billion in the year 2020. The same is projected to reach a revised size of US$39.5 Billion by 2026, growing at a CAGR of 7.3 per cent over the analysis period.
“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 eight to over 30 per cent in the recent years, providing a significant scope of opportunity for automotive cockpit electronics,” read the report.
Infotainment & Navigation
Infotainment & Navigation, one of the segments analyzed in the report, is projected to grow at a eight per cent 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 per cent CAGR for the next 7-year period.
This segment currently accounts for a 25.6 per cent 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.
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 per cent CAGR estimated for this segment.
These regional markets accounting for a combined market size of US$4.3 Billion in the year 2020 will reach a projected size of US$6.8 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets.
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.