Automotive Human Machine Interface (HMI) Market Size, Share & Industry Analysis, By Operation Type (Gesture, Voice, and Manual), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecasts, 2024-2032

The global automotive human machine interface (HMI) market size was valued at USD 23 billion in 2023. The market is projected to grow from USD 24.73 billion in 2024 to USD 66.28 billion by 2032, exhibiting a CAGR of 13.1% during the forecast period.

Automotive Human Machine Interface (HMI) refers to the technology and design elements allowing interaction and communications between humans and vehicles. It consists of various interface systems through which users can control and access information in an automobile. The primary purpose of the HMI system is to offer a seamless user experience, ensuring that drivers can safely and efficiently operate the vehicle's features and functions.

An important part of the human machine interface system is the display system. It functions as a communication medium for information and entertainment. ADAS systems collect data from various sensors and display it through central display systems to give drivers better control of their vehicles. In addition, a well-designed automotive HMI can reduce driver distraction, enable safer interaction with vehicle functions, minimize the risk of accidents, and enable personalization options. Users can configure settings, views, and controls according to their preferences and needs.

Growing technological advancements in AI, machine learning, and increasing focus on autonomous vehicles will drive the automotive Human Machine Interface market growth. The COVID-19 pandemic severely impacted global auto sales, especially in the passenger car sector, which resulted in collapse of the global economy. The pandemic had created uncertainty in the industry and caused panic across the industrial value chain. The key industry players had shut down their manufacturing units to avoid spreading the virus, thereby negatively impacting the automotive human machine market.

Automotive Human Machine Interface (HMI) Market Trends

Increasing Adoption of AR Heads-Up Display, Multimodal Interfaces, and Biometric Systems to be Prominent Market Trend

Augmented Reality (AR) heads-up displays are becoming increasingly important in the automotive HMI systems. These displays project virtual information into a real-world view. The technology increases driver awareness by displaying important information, such as navigation instructions, speed limits, and collision warnings directly in the driver's field of vision. It also provides a more immersive and intuitive driving experience, reducing the need for drivers to look away from the road.

Automotive HMIs are increasingly using multimodal interfaces that combine different input methods for user interaction. This approach allows users to choose the most convenient and appropriate input method for each situation, whether touchscreen, voice commands, gestures, or physical controls. Multimodal interfaces increase user flexibility and adaptability to different driving conditions, and expand users’ preferences by providing multiple interaction options.

Biometric systems are becoming increasingly important in the market due to increased demand for security and personalized user experience. Biometric features, such as fingerprint recognition, facial recognition, and iris scanning can authenticate drivers and provide personalized settings based on drivers’ preferences. These systems can also monitor drivers, ensuring alertness and improving road safety. Introducing such advanced technologies is one of the major trends in the market.

Automotive Human Machine Interface (HMI) Market Growth Factors

Ability of Human Machine Interface to Provide Impeccable Driver Safety Will Favor Market Growth

An advanced automotive Human Machine Interface platform, combined with in-car sensors, provides the driver with a real-time Augmented Reality experience through a Head-Up Display (HUD). The HUD helps the driver visualize the potential movement of other vehicles and provides information, such as upcoming cornering strategies and speed limit changes. Introducing various features and driving safety notifications on the screen further allows users and vehicle owners to be informed of vehicle ecosystem and surroundings of vehicles.

The rising demand for various vehicle integrated features, rising infotainment application solutions are increasing the demand for advance HMI systems in vehicles. The integration of HMI system further increases driver and vehicle safety by allowing the driver to focus on the road without additional dashboard displays. Thus, additional safety features and their demand in vehicles will spur the global market growth.

Ability to Increase Value Propositions for Automotive Manufacturers Will Boost Market Growth

Human Machine Interfaces benefit the end-user and allow automotive manufacturers to gain a distinct advantage in an increasingly competitive marketplace. Consumers' preference for advanced car safety will enable automakers to leverage innovative technologies to add more features in HMIs and further strengthen the players' positions in the market.

The users and car enthusiasts are likely to enjoy these additional vehicle features which is further expected to drive the demand for HMI systems in vehicles. Moreover, the flexibility and adaptability of the automotive HMI platform will also ensure cost-cutting for manufacturers over the long term by avoiding redundant software development costs. They can also make a profit by using spares for existing components, sensors, and hardware.

RESTRAINING FACTORS

Lack of Cyber Security In HMI Systems May Hinder Market Growth

Although the automotive HMI system has experienced minimal cybersecurity issues, its ease of connecting to the internet increases risk of hacking. A flawed HMI may lead to losing confidential data by allowing hackers to crash systems. For instance, researchers from Fluoroacetate hacked the Tesla Model 3 car via their onboard browser. They used a JIT bug in the browser renderer process to execute code on the car's firmware and show a message on its display system. Fluoroacetate is a highly successful hacker team of security researchers. Thus, the risk of hacking the system may hamper the growth of the market.

Automotive Human Machine Interface (HMI) Market Segmentation Analysis

By Operation Type Analysis

Use of Voice Recognition to Increase in HMIs Owing to Its Precise Operation

Based on operation type, the market is segmented into gesture, voice, and manual.

The voice recognition system segment holds the largest market share. This system plays a significant role in enhancing the driver's experience, safety, and convenience. The voice recognition system utilizes speech recognition technology to interpret spoken commands and interact with various onboard systems and functions. In the automotive human machine interface, the voice recognition system uses hands-free phone calls, media playback controls, voice-activated navigations, climate control, text messaging & emails, voice-activated virtual assistants, access vehicle information, and natural language processing. With these features, the voice recognition system can contribute to safer driving by reducing the need for manual interaction with controls and displays. It allows drivers to concentrate on the road while accessing various vehicle functions.

The manual segment has the second-largest share in this market. This segment consists of steering wheel controls, physical buttons, and knobs. The majority of vehicles have buttons and switches integrated into the steering wheel. These controls typically include audio volume adjustment, phone call handling, cruise control activation, and access to driver assistance system settings. Physical buttons and knobs are often used for functions, such as climate control, media tuning, and media playback controls. Their tactical feedback allows the driver to operate these functions without taking their eyes off the road. This factor is expected to drive the manual segment growth over the forecast period. Lesser installation and maintenance costs of the manual systems as compared to gesture and voice assistance systems is another factor driving the segment’s growth.

By Vehicle Type Analysis

Introduction of Advanced Tech to Boost Deployment of Automotive HMI in Passenger Cars

The market is segmented into passenger cars and commercial vehicles based on vehicle type.

The passenger car segment holds the largest share of the global market. The segment consists of vehicles that are affordably priced and come with attractive features. Products for human machine interfaces, such as instrument clusters, center screens, and multi-function switches, which are already used in the medium-sized car segment, are doing well. In addition to personal use, commercial use of these vehicles in the form of taxis is also possible. The dominance of the passenger car segment can be attributed to several factors, such as the increasing urban population and commuting needs. Moreover, electric vehicles are becoming the preferred choice for end-users due to their low maintenance and running costs and the growing trend of using clean energy to power vehicles.

Rapid urbanization and increasing disposable income of the urban population have raised the purchasing power of individuals. The commercial vehicle segment has also grown significantly in recent years due to the growing demand for commercial vehicles in the logistics & transportation sector. Moreover, the rising demand for voice assistance systems in the commercial vehicle segment is another reason behind this segment's growth during the forecast period.

REGIONAL INSIGHTS

Geographically, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.

In 2023, the North America market size was valued at USD 7.84 billion in 2023 and is projected to grow significantly during the forecast period. North America dominated the market. The region’s automotive industry has witnessed significant advancements over the past several years. Increased emphasis is being given on Advanced Driver Assistance Systems (ADAS). Moreover, customers across the region are increasingly demanding feature-loaded vehicles that give them more control. Additionally, infotainment systems have witnessed drastic changes over time, with automotive companies increasingly providing large touch panels in vehicles, primarily cars, enabling the users to interact with the vehicles more efficiently. Companies, such as Tesla, General Motors, and Ford Motor Company are providing these features to attract customers.

Asia Pacific is expected to be the second-largest region in the global market during the forecast period. Rise in the production and sales of automobiles in countries, such as India, Japan, China, and South Korea will help Asia Pacific dominate the market over the forecast period. Additionally, increasing demand for electric and connected vehicles from countries, such as China and Japan, is further expected to drive market growth in the region and is expected to maintain its position in the market. Automotive HMI needs seamless connectivity and efficient management of EV-specific features. Therefore, the adoption of automotive HMI in this region is driven by the growing popularity of EVs and connected cars.

Europe's market is also anticipated to show lucrative growth over the forecast period. Government authorities in the region have stepped up their vehicle evaluation policies, requiring manufacturers to produce vehicles that meet government safety standards. Sensor-based technology is gaining momentum in the automotive sector to meet the governments’ safety regulations. Therefore, demand for Advanced Driver Assistance Systems (ADAS) is expected to increase the adoption of automotive HMI systems during the forecast period.

List of Key Companies in Automotive Human Machine Interface (HMI) Market

Companies are Focusing on Partnerships and Acquisitions to Gain Competitive Edge

Some leading companies are dominating the global market due to their critical strategic decisions and robust product portfolios. These key companies have an extensive geographic presence and are engaged in persistent R&D programs to secure regulatory approvals.

LIST OF KEY COMPANIES PROFILED:

• Continental AG (Germany)


• Synaptics Incorporated (U.S.)


• Valeo S.A. (France)


• Visteon Corporation (U.S.)


• Alpine Co. Ltd. (Japan)


• Aptiv (Ireland)


• Tata Elxsi (India)


• EAO AG (Switzerland)


• Forciot Oy Ltd. (Finland)


• Actia Corporation (France)


• HARMAN International (U.S)


• Intellias LLC (Ukraine)


• Rightware Inc., (Finland)


• Panasonic Automotive Systems Europe GmbH (Germany)


• Bosch Global Software Technologies PVT. LTD. (Germany)


• 3M (U.S.)


• Infineon Technologies AG (Germany)

KEY INDUSTRY DEVELOPMENTS

• June 2023: Mercedes-Benz U.S.A. announced the integration of its Chat GPT feature with its AI software in the U.S. According to the company, this feature will be available in selected luxury vehicles. This innovative feature allows drivers to interact naturally with their vehicles through voice commands, improving the user experience.


• April 2023: VEMI Labs unveiled a custom-built multi-person self-driving vehicle simulator at the University of Maine. This technology is a unique platform for human research in the automotive field. It aims to replace the currently available human-controlled taxi and ride-sharing services. There are no steering wheels or pedals and the cabin has multi-directional seats for up to six people.


• January 2023: BMW launched "I Vision Dee," a concept car equipped with a next-level human-machine interaction system. This car is also called the ‘talking car’ as it can talk like humans and change colors like a chameleon.


• June 2022: Jaidu, one of the largest manufacturers of electric vehicles, unveiled its first concept, a robocar called ROBO-01, which can detect user emotions. ROBO-01's intelligent cabin has an offline voice assistant, 3D man-machine riding map, and millisecond-level response to cover 100% of all scenarios inside and outside the vehicle.


• April 2022: Incari partnered with Piech Automotive to develop a user-friendly automotive HMI and digital cockpit for Piech GT, a two-seater electric sports car, which will be launched in 2024.

REPORT COVERAGE

The market report provides detailed analysis and focuses on key aspects, such as leading companies, vehicle types, and product types. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation