Instrument Cluster Market - Forecasts from 2024 to 2029

The global instrument cluster market is evaluated at US$10.520 billion for the year 2022 and is projected to grow at a CAGR of 9.43% to reach a market size of US$19.774 billion by the year 2029.

An instrument cluster, often referred to as a dashboard or gauge cluster, is a crucial part of a car's cockpit that gives the driver vital knowledge regarding the condition and functionality of the vehicle. The instrument cluster, which is usually mounted behind the steering wheel, combines many gauges, indications, and displays to provide critical information including speed, engine RPM, fuel level, temperature, and alert lights for problems like low tire pressure or engine failure.

To convey information clearly and understandably, modern instrument clusters frequently include digital screens or LCD panels. These panels also provide additional functions like multimedia controls, navigational directions, and driver aid notifications, as well as customizable layouts.

MARKET TRENDS:

The major driving factor for the growth of this market is the growing automotive production worldwide, though the sales of vehicles are shrinking in some regions. Furthermore, the rising integration of the latest and most advanced technologies across the automotive sector is also anticipated to significantly drive the adoption of instrument clusters for numerous applications.

Furthermore, the growing emphasis of major country governments on reducing vehicle emissions is leading to increased investment in the electric vehicle segment. This provides a great opportunity for instrument cluster providers to expand their market reach, thus positively impacting the market growth of the global instrument cluster during the next five years. However, the rapidly rising trend of ride-hailing and car rental services markets in major regions across the world is anticipated to moderately hinder the market’s growth during the forecast period.

MARKET DRIVERS:

Growth in the production of automobiles is anticipated to drive the market’s growth.

The growth in the production of automobiles across the globe in the major regions is considered one of the key drivers for the market growth of instrument clusters during the forecast period. The presence of major automotive manufacturers in the major regions like Asia-Pacific, Europe, and North America coupled with numerous favorable government policies and initiatives is anticipated to propel the production of automobiles, which in turn positively impacts the market growth of the instrument cluster significantly throughout the forecast period. Rising disposable incomes and living standards are significantly driving the sales of passenger cars, which is fueling the production of this segment. As a result, the demand for instrument clusters is increasing significantly.

Increasing investments in electric and hybrid vehicles might impact the global instrument cluster market growth.

The increasing investments in electric and hybrid vehicles in major cities are expected to propel growth opportunities for the market throughout the forecast period and beyond. In addition, favorable government policies regarding the promotion of electric vehicles will further augment the production of these vehicles, which is thereby expected to supplement the overall market growth of instrument clusters in the coming years. For instance, in the Made in China 2025 program, the Chinese government is focusing majorly on the production of NEVs as an important part of their policy.

In addition, the rapid deployment of new electric cars is also projected to supplement the market growth of instrument clusters significantly during the next five years. According to the International Energy Agency, the world witnessed a 41% increase in the total registration of Electric cars in 2020 despite a pandemic-related decline in car sales.

The digital segment is anticipated to show robust growth.

By technology, the global instrument cluster market is segmented as analog, digital, and hybrid. The digital segment is anticipated to show robust growth throughout the forecast period on account of the rising adoption of these clusters by the automotive manufacturers’ account of rising consumer expectations regarding the features and infotainment of their vehicles.

In addition, the growing penetration of these clusters in the two-wheeler segment is also one of the prime factors for boosting the market growth of digital instrument clusters throughout the forecast period. In addition, the growing consumer expectations regarding the features and infotainment systems of the vehicles are further leading to increased investments by key market players in R&D to develop and launch new products which also shows the growth prospects of the market throughout the forecast period.

Passenger vehicles are expected to be the fastest-growing segment.

By vehicle type, the global instrument cluster market is segmented into light commercial vehicles, two-wheelers, buses and coaches, light commercial vehicles, and heavy trucks. Passenger vehicles are projected to hold a notable share in the market on account of a significantly larger share of these vehicles in the automotive industry coupled with the growing production in major developing economies due to increased demand on account of rising disposable income and a growing middle-class population.

Further, the LCVs segment is projected to show notable growth during the next five years on account of increasing demand in major developing economies like India, China, and Indonesia. In addition, the growing e-commerce industry is considered one of the prime factors for the growth of this segment, as the e-commerce industry is significantly driving logistics growth. This, in turn, is propelling the demand and production of LCVs fueling the instrument cluster market.

Asia Pacific is anticipated to be the major regional market.

Geographically, the global instrument cluster market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. APAC is expected to hold a notable share of the global market owing to the high production of automobiles in China, India, and ASEAN countries. The North American region is expected to hold a significant market share on account of the early adoption of technology and a well-established automotive sector. Europe is anticipated to grow substantially over the forecast period on account of increasing investment by automotive manufacturers in facility expansions to boost the production of automobiles on account of increased demand.

Key Developments:

• In July 2022, a tier 1 Chinese electric vehicle (EV) manufacturer awarded VIA Optronics AG a leading provider of interactive display systems and solutions, a business award for its instrument cluster and center information display (CID). The device consists of a C-shaped cover lens laminated with one of the touch sensor options offered by the company.
• In June 2022, BiTECH Automotive (Wuhu) Co., Ltd. and BlackBerry Limited announced that Changan Automobile's new high-end coupe, the UNI-V, has been equipped with their collaboratively created sophisticated digital LCD cluster, which incorporates the QNX® Neutrino® Realtime Operating System (RTOS).

Segmentation:

By Technology

• Analog
• Digital
• Hybrid

By Application

• Speedometer
• Odometer
• Tachometer
• Others

By Vehicle Type

• Passenger Cars
• Two-Wheelers
• Buses and Coaches
• Light Commercial Vehicles
• Heavy Trucks

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others 
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others 
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others 
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others