Head-Up Display Market by Component (Projection Unit, Video Generator, Display Channel, Software), Technology (CRT, Micro Electromechanical Systems (MEMS), Liquid Crystal Display (LCD), DLP, LCOS, Waveguide), Application (Military and Defense, Civil and Aviation, Automotive), Type (Windshield, Combiner, Head Mounted) and Region for 2022 – 2028

Head-Up Display Market Snapshot

[376 Pages Report] The global head-up display (HUD) market size is projected to top US$ 7,053 Mn in 2022, as per a recent market analysis by Future Market Insights (FMI). Increasing demand for autonomous vehicles is expected to push sales at a 21.4% CAGR, with the market size reaching US$ 22,600 Mn by 2028.

Ongoing technological advancements to improve safety in passenger vehicles are ushering product developments in the market. Improvements in display units, driver-assistance systems, and other navigation and safety features will continue propelling sales in the forthcoming years.

In addition to this, the integration of connective technologies such as artificial intelligence (AI) and augmented reality in HUDs to improve the driving experience and road safety will remain a chief growth driver. As per FMI, applications in the automotive sector are expected to remain high, accounting for 22% of the total head-up display market share in 2022.

Head-Up Display Market Outlook 2017-2022 in Comparison to 2022-2028 Growth Forecast

Demand in the head-up display market is projected to grow at an impressive 21.4% CAGR, in comparison with the CAGR of 19.5% registered between 2017 and 2022.

Sales of semi-autonomous and electric vehicles have increased considerably in recent years. Semi-autonomous vehicles can sense the environment and help drivers navigate through potential hazards by using voice commands.

These vehicles are equipped with features such as collision avoidance, park assist, and cruise control to offer optimal security and convenience to the drive. Growing demand and sales of semi-autonomous vehicles are expected to boost the market for HUDs.

In the aviation sector, HUDs are primarily used as information displayers in large aircraft including civil aviation and military/defense aviation. Most commercial aircraft are equipped with advanced HUDs, enabling pilots to receive and access critical information without looking away from the windscreen.

Ongoing investments in the military and defense sector to deploy technologically advanced systems will continue enabling sales in this sector. Demand in North America and Europe is expected to remain high as manufacturers are aiming to enhance aircraft visibility. Besides this, the growing replacement rate of older HUDs with new and advanced systems in fighter jets will continue boosting the market over the assessment period.

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How Will the Integration of Connective Technology Influence Head-Up Display Sales?

Augmented reality (AR) is a developing area of technology, which is attracting interest in its ability to overlay digital objects in the surroundings at the consumer’s disposal. To improve the safety features and visibility in autonomous vehicles, manufacturers are getting inclined towards the integration of augmented reality (AR) and artificial intelligence (AI) in HUDs.

When combined with existing holographic HUDs, AR potentially enhances functionality by overlaying navigation indications and other obstacles with color-coded strips and other indicative features.

As automakers strive to create a better driving experience, the integration of AR in HUDs is likely to gain traction in the forthcoming years. Growing awareness regarding advanced safety features and control modules in cars is also expected to boost this trend, and more manufacturers are expected to adopt this technology as installation costs fall.

For instance, Volvo has invested in Spectralics, an Israel-based tech firm to offer a highly advanced display solution by transforming the entire windshield into a dynamic display. Spectralics' technology works by overlaying the windshield with a thin film known as a multi-layer thin combiner.

This turns the entire windshield into a transparent display, allowing Volvo to show graphics and other visual elements by using AR. Such developments are expected to continue pushing sales of HUDs in the forthcoming years, opines FMI.

Will the Penetration of Head-Up Displays in Military and Defence Boost the Market?

Growing investments in the military and defense sector in various countries are propelling the adoption of smart and advanced HUDs in aircraft, thereby fueling sales in the market. Proper visibility, effective control, and timely indication of danger or hazards are optimal for pilots operating fighter jets and official airplanes. This is encouraging manufacturers to launch advanced HUDs for the military and defense sectors.

As per statistics availed by the Stockholm International Peace Research Institute, world military spending rose to 2 Trillion in 2020. In the same year, the U.S. military expenditure recorded an uptick by 4.4% over 2019. These investments are enabling countries to deploy effective safety and control measures in defense vehicles and aircraft, which is expected to bode well for the market.

Further, in October 2021, the Government of India cleared projects worth US$ 7.21 Bn to enhance the military capabilities with locally produced systems and weapons, including tanks, helicopters, transport plans, and warning systems. This is expected to create a conducive environment for the growth of the market over the forecast period.

Country-wise Insights

What Will be the Demand Outlook in the U.S. Head-Up Display Market?

As per FMI, sales in the U.S. market are projected to grow at a stupendous 14.85 CAGR through 2028. Ongoing investments in the military and defense sector are spurring demand in the market, which is expected to continue pushing sales in the forthcoming years.

In addition to this, the U.S. is one of the biggest automotive hubs in the world. The presence of leading automakers such as General Motors, Chevrolet, Tesla and Cadillac, and Buick, and various OEMs is expected to boost the market.

Besides this, increasing demand for advanced safety features in semi-autonomous and commercial vehicles in the country is anticipated to push sales over the forecast period.

How Will the U.K. Head-Up Display Market Fare?

Increasing adoption of advanced technological systems in the automotive sector in the U.K. is placing it as an attractive pocket in the Europe market. As per the report, demand in the U.K. head-up display market is projected to increase at a 16.5% CAGR over the assessment period.

Consumers are widely preferring vehicles with advanced safety features and driver assistance systems to improve their on-road experience. In response to this, various carmakers in the U.K. are investing in research and development to improve their product offerings.

For instance, U.K.-based start-up Envisics raised US$ 500 million in Series B funding to improve the holographic technology for HUDs in the automotive sector. In addition to this, automotive giant Mercedes Benz has recently announced that it will be the first automaker to include AR HUD in its 2021 S-Class series.

Will the China Head-Up Display Market Continue Witnessing High Demand?

China is projected to account for a dominant share in the East Asia head-up display market. Sales in the country are forecast to grow at a 22.0% CAGR through 2028.

Growing investments in the defense and military sector in China will continue boosting the market. These investments are enabling the deployment of technologically advanced navigation and control systems in defense aircraft and commercial jets, resulting in higher sales.

Besides this, increasing sales of semi-autonomous vehicles favored by rising disposable income, coupled with increasing investments in the automotive sector will continue fueling the growth of the market over the forecast period.

Category-wise Insights

Which is the Dominant Component Type?

Based on component type, demand in the display panel segment is expected to rise at a remarkable pace over the assessment period. Growing demand for navigation and infotainment systems in modern vehicles will continue boosting sales in this segment.

In addition to this, increasing preference for enhanced safety, convenience, and comfort features in vehicles, especially in emerging economies is boosting the market. Advanced infotainment systems, telematics, gesture control systems, and center controllers are being introduced by manufacturers to improve sales, which in turn is augmenting the growth of the market.

Why is Demand for Liquid Crystal Display (LCD) Rising?

In terms of technology, sales of liquid crystal display (LCD) in HUDs are forecast to gain traction over the forecast period. The performance of HUDs can be significantly improved with the help of advanced LED technologies.

HUDs include a picture generating unit (PGU) with an array of LEDs, a thin field transistor production display, a lens system, and a beam spiller. The unit displays images of the surroundings, reflected through fold mirrors. These images are later projected on the windshield.

Power LED and laser lights are crucial for HUDs as they deliver bright light which allows drivers to see the projected images and information. Owing to these factors, sales in this segment are projected to rise in the forthcoming years.

Which is the Leading Head-Up Display Application?

Applications of HUDs in the automotive sector are anticipated to gain momentum over the forecast period. Leading carmakers are deploying advanced HUDs in premium and exclusive vehicle ranges to improve the driving experience.

In response to the growing demand, manufacturers are also deploying HUDs in luxury cars and commercial vehicles to improve sales. OEMs are launching cost-effective HUD models to enable their deployment in electric and passenger vehicles to make them affordable for consumers in developing regions. This will also enable manufacturers to integrate HUDs in inexpensive car models, further fueling the growth of the market.

Why are Windshield Head-Up Displays Highly Sought-After?

As per FMI, the windshield HUDs segment is projected to expand at a considerable pace in the forthcoming years. Windshield HUDs show relevant information directly on the screen of the windshield, enabling the driver to access this information in the line of sight. In case of special events, the driver is warned about collisions and hazards without causing any distractions.

These systems are offered as a standard feature in luxury cars and premium car models. However, manufacturers are developing cost-effective system variants to enable their deployment in mid-variant vehicles and commercial vehicles. Against this backdrop, demand for windshield HUDs is expected to gain traction over the forecast period.

Competition Landscape

Leading players operating in the global head-up display market are focusing on research and development to integrate connective technologies such as artificial intelligence (AI) and augmented reality (AR). Through this, players are aiming to diversify their product portfolios. In addition to this, players are investing in mergers, acquisitions, and collaborations to gain a competitive edge in the market. For instance:

• In February 2021, Panasonic displayed a futuristic augmented reality (AR) head-up display (HUD) at the 2021 Consumer Electronics Show. The new HUD uses artificial intelligence to detect and highlight potential obstacles and hazards including pedestrians, cyclists, vehicles, and bridges.
• In October 2019, Nippon opened a new development center in Tokyo, Japan, for its HUD business. The new R&D center will focus on tasks such as integrated cockpit development and next-generation HUD development for product enhancement.

Scope of Report

Head-Up Display Market by Category

Component:

• Projection Unit
• Video Generator
• Display Panel
• Software

Technology:

• CRT
• Micro Electromechanical Systems (MEMS)
• Liquid Crystal Display (LCD)
• DLP
• LCOS
• Waveguide

Application:

• Military and Defense
• Civil and Aviation
• Automotive
• Others (Manufacturing, Wearable etc.)

Type:

• Windshield
• Combiner
• Head-Mounted

Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa