Automotive Instrument Cluster Market Size, Share & Trends Analysis Report By Type (Analog, Digital, Hybrid), By Vehicle Type (Scooter, Buses), By Propulsion Type (ICE, Electric), By Region, And Segment Forecasts, 2024 - 2030

Automotive Instrument Cluster Market Trends

The global automotive instrument cluster market size was valued at USD 8.0 billion in 2023 and is expected to grow at a CAGR of 7.9% from 2024 to 2030. The rapid pace of technological advancement is a primary factor driving the demand for automotive instrument cluster. Innovations in display technology, such as OLED and LCD screens to create high-resolutions and vibrant displays that can convey a wealth of car information are driving the market growth. Furthermore, advancements in microprocessors and software have enabled the development of sophisticated instrument clusters that can process and display data in real-time.

Modern consumers have high expectations for their vehicles, seeking features that enhance both functionality and aesthetics. The demand for enhanced user experience is driving manufacturers to develop instrument clusters to develop instrument clusters that are not only informative but also visually appealing and customizable. Consumers expect their vehicle’s interface to be intuitive and easy to use, similar to their smartphones and other personal devices.

The emphasis on user experience (UX) is increasingly influencing the design and functionality of automotive instrument clusters. Manufacturers are focusing on creating intuitive interfaces that are easy to navigate and reduce driver distraction. Features such as voice recognition, touch-sensitive controls, and haptic feedback are being incorporated to enhance the overall driving experience.

Stringent safety regulations imposed by governments and regulatory bodies are driving the development of advanced instrument clusters. Regulatory standards such as the European New Car Assessment Program (Euro NCAP) and the National Highway Traffic Safety Administration (NHTSA) in the U.S. require vehicles to meet specific safety criteria. Instrument clusters play a vital role in complying with these standards by providing essential safety information and alerts to drivers. The need to adhere to these regulations is pushing manufacturers to innovate and improve their instrument cluster offerings.

Rising concerns about environmental sustainability and the implementation of stringent emission standards are influencing the design of instrument clusters. Modern clusters are equipped with features that promote fuel-efficient driving, such as real-time fuel consumption displays and eco-driving indicators. These features encourage drivers to adopt more sustainable driving practices, contributing to reduced emissions and improved fuel economy. The push for greener vehicles is thus driving the demand for instrument clusters that support eco-friendly driving.

Type Insights

The hybrid segment dominated the market in 2023 and accounted for more than 63% share of global revenue. Hybrid instrument clusters offer a range of benefits, including enhanced customization, better aesthetics, and the ability to display a wide variety of information. They allow manufacturers to integrate advanced features such as navigation, multimedia, and connectivity options directly into the dashboards. This transition is driven by consumer demand for modern and tech-savvy vehicles.

The digital segment is projected to witness the highest growth rate from 2024 to 2030. The digital instrument cluster represents a significant technological advancement that has driven substantial innovation in automotive dashboards. It delivers a clear and concise display of vehicle parameters to the driver, strategically timed to minimize driver distraction and enhance the overall driving experience. A digital instrument cluster enhances functionality beyond that of analog and hybrid models, offering a distinct competitive advantage and differentiation in the automotive market. Such benefits offered by digital automotive instrument clusters are expected to contribute to the segment’s growth.

Vehicle Type Insights

Passenger cars dominated the market in 2023. Automotive instrument clusters play a crucial role in passenger cars, providing drivers with essential information for safe and efficient driving. These clusters display vital data such as speed, fuel levels, engine temperature, and warning indicators, ensuring the driver is always aware of the vehicle’s status. Passenger car instrument clusters cater to diverse applications, from sedans and SUVs to sports cars and luxury vehicles, each with specific requirements and features. Thus, factors such as technological advancements, increased passenger car production, rising demand for connected and autonomous vehicles, and a heightened focus on improving driving experience and safety can be attributed to the segment’s growth.

The three-wheeler segment is projected to witness significant growth from 2024 to 2030. Automotive instrument clusters play a crucial role in three-wheeled vehicles, providing riders with essential information for safe and efficient operation. The segment's growth can be attributed to the growing demand for and production of three-wheelers in developing countries across the globe. In addition, as the demand for electric three-wheelers continues to grow, the importance of intuitive and informative instrument clusters becomes paramount in meeting the needs of this evolving market segment.

Propulsion Type Insights

The ICE segment dominated the market in 2023. The automotive instrument cluster in ICE vehicles typically displays vital information such as speed, engine RPM, fuel level, and temperature. It also includes warning lights and indicators to alert the driver of any issues with the vehicle's systems. The segment's growth can be attributed to the increasing use of analog instrument clusters with physical gauges and dials in traditional ICE vehicles.

The electric vehicle (EV) segment is projected to witness significant growth from 2024 to 2030. The growing popularity of electric vehicles is a significant driver for the automotive instrument cluster market. EVs require specialized instrument clusters that provide information on battery status, range, charging status, and energy consumption. As the adoption of EV accelerates, the demand for advanced instrument clusters that cater to the unique requirements of electric drivetrains is expected to rise over the forecast period. This shift towards electrification is creating new opportunities for innovation in the instrument cluster market.

Regional Insights

North Americaautomotive instrument cluster market is expected to witness steady growth from 2024 to 2030. The growing demand for electric vehicles in the region is a major driver, as EVs require advanced instrument clusters to display crucial data such as battery status and range. In addition, the growing preference for digital and hybrid instrument clusters among consumers, which offer enhanced functionality and customization, is further fueling market growth in the region.

U.S. Automotive Instrument Cluster Market Trends

The automotive instrument cluster market in the U.S. is expected to grow at a significant CAGR from 2024 to 2030. Supportive government policies promoting the adoption of EVs, and advanced automotive technologies can be attributed to the market’s growth. In addition, the vast presence of major automakers and technology companies in the U.S. is further creating favorable environments for the growth of the automotive instrument cluster market in the country.

Asia Pacific Automotive Instrument Cluster Market Trends

The automotive instrument cluster market in Asia Pacificdominated the global industry in 2023 and accounted for a 47.83% share of the global revenue. The robust automobile manufacturing presence in the region, led by countries such as China, India, and Japan, is a significant driver for the automotive instrument cluster market. In addition, the surging sales of passenger cars across the region, coupled with the increasing urban population and improving living standards, are expected to boost the growth of the market from 2024 to 2030.

Europe Automotive Instrument Cluster Market Trends

The automotive instrument cluster market in Europe is expected to grow at a significant CAGR from 2024 to 2030. Europe is home to several prominent luxury car brands, such as Audi AG, BMW AG, and Mercedes-Benz, which have a strong demand for advanced instrument cluster technologies. In addition, Europe is known for its rapid adoption of advanced technologies, which is driving the demand for innovative and feature-rich instrument cluster solutions in the automotive industry. Thus, factors such as the region's strong luxury car manufacturing presence, rapid technology adoption, and the established presence of companies such as Continental AG and Robert Bosch GmbH are expected to contribute to the market's growth in the region.

Key Automotive Instrument Cluster Company Insights

Key players operating in the automotive instrument cluster market include Continental AG, Denso Corporation, JP Minda Group, Nippon Seiki Co., Ltd., Panasonic Corporation, Pricol Limited, Robert Bosch GmbH, Simco Ltd., Valid Manufacturing Ltd., and Visteon Corporation. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In November 2023, at EVangelise '23, hosted by iCreate in Ahmedabad, the Bengaluru-based startup Auklr Technologies unveiled an advanced intelligent instrument cluster designed to transform the driving experience for electric vehicles.

• In August 2023, TVS Motor Company, an Indian automotive manufacturer, introduced the TVS X, an electric two-wheeler. Built on an entirely new platform, the TVS X features the 10.25-inch instrument cluster, supporting the company's in-built navigation system, NavPro, among other features.

Automotive Instrument Cluster Market Report Scope

Global Automotive Instrument Cluster Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automotive instrument cluster market report based on type, vehicle type, propulsion type, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Analog

  • Digital

  • Hybrid

• Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Scooter

  • Motorcycle

  • Three Wheeler

  • Passenger Car

  • Buses

  • Trucks

• Propulsion Type Outlook (Revenue, USD Million, 2018 - 2030)

  • ICE

  • Electric

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Kingdom of Saudi Arabia

    • South Africa