The global instrument cluster market was valued at US$47.324 billion in 2019 and is expected to grow at a CAGR of 4.00% over the forecast period to reach a total market size of US$59.884 billion in 2025. The major driving factors for the growth of this market is the growing automotive production worldwide, though the sales of vehicles is shrinking in some regions. Furthermore, the rising integration of the latest and advanced technologies across the automotive sector is also anticipated to significantly drive the adoption of instrument clusters for numerous applications. Furthermore, the growing focus of governments of major countries towards the reduction of vehicle emissions is further leading to increased investments in the electric vehicle segment. This provides a great opportunity for instrument clusters 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 growth during the forecast period.
Growing Global automotive production
The growth in the production of automobiles across the globe in the major regions is considered as 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 is positively impacting the market growth of the instrument cluster significantly throughout the forecast period. Rising disposable incomes and living standards is significantly driving the sales of passenger cars which is fuelling the production of this segment. For example, the production of passenger cars in the ASEAN region increased significantly from 2,625,198 units in 2013 to 2,648,629 units by 2018. AS a result, the demand for instrument clusters is increasing significantly.
Increasing investments in electric and hybrid vehicles
The increasing investments in the electric and hybrid vehicles in major is expected to propel the 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, thereby expected to supplement the overall market growth of instrument clusters in the coming years. For instance, the Made in China 2025 program, in which the Chinese government is targeting majorly on the production of NEVs as in important part of their policy by which the government is aiming to manufacture 1 million electric and plug-in hybrid cars in the country by 2020. 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 deployment of electric cars across the globe increased rapidly to 3.29 million units by 2018 from only 0.23 million units in 2013.
Digital segment 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 a robust growth throughout the forecast period on account of the rising adoption of these clusters by the automotive manufacturers on 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 is further leading to increased investments by key market players in the R&D to develop and launch new products also show the growth prospects of the market throughout the forecast period. For instance, in November 2018, Bosch announced its latest technological innovation which was the world’s first curved digital instrument cluster which was launched with an aim to give the next generation digital cockpit designs to the automotive industry.
The analog segment is anticipated to hold a notable share in the global market on account of the early adoption of these clusters in the automotive industry. Further, the hybrid segment is anticipated to grow substantially throughout the forecast period.
Passenger vehicles are expected to rule the market
By vehicle type, the global instrument cluster market is segmented into light commercial vehicles, two-wheeler, buses and coaches, light commercial vehicles, and heavy trucks. The 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 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 the major developing economies like India, China, and Indonesia. In addition, the growing e-commerce industry is considered as 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. According to the data from the International Organization of Motor Vehicle Manufacturers, the production of LCVs globally increased from 14,767,988 units per year in 2010 to 21,072,296 by 2018.
Asia Pacific region anticipated to hold a notable share
Geographically, the global Instrument Cluster market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. APAC is expected to hold a notable share in 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 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.