Automotive Instrument Cluster Market Size, Share, Growth, Trends, and Forecast, 2032

Automotive Instrument Cluster Industry Prospective:

The global automotive instrument cluster market size was worth around USD 8.32 billion in 2023 and is predicted to grow to around USD 15.69 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.30% between 2024 and 2032.

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Automotive Instrument Cluster Market: Overview

An automotive instrument cluster is a series of indicators that are necessary for a driver to obtain all essential information about the status and operation of the vehicle. It is located on the vehicle’s dashboard in front of the seat on the driver’s side. The indicators included in the clusters are the odometer, speedometer, and fuel gauge. There are several ways in which the information can be presented to the driver. The most common methods include the use of a digital screen to present the information graphically and numerically, using a needle indicator pointing in a specific direction based on the vehicle speed or fuel level, or using a cluster light.

Drivers can obtain information on parameters such as the travel speed, oil levels and fuel, oil pressure, speed & temperature, and the charge in the battery among other aspects. The automotive instrument cluster is responsible for showing crucial data. It is an indicator of alarm signals or warning signs before an unwanted situation arises while driving a vehicle. The extended use of automotive instrument clusters complies  with regional traffic rules. An automotive instrument cluster is considered one of the most important parts of a vehicle and is available in all automobiles irrespective of the model or the brand.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive instrument cluster market is estimated to grow annually at a CAGR of around 7.30% over the forecast period (2024-2032)
• In terms of revenue, the global automotive instrument cluster market size was valued at around USD 8.32 billion in 2023 and is projected to reach USD 15.69 billion by 2032.
• The market is projected to grow at a significant rate due to the rising demand for electric vehicles and changes in instrument cluster technology
• Based on vehicle type segmentation, the passenger car segment is expected to dominate the global market.
• Based on cluster type segmentation, the analog segment is projected to swipe the largest market share.
• On the basis of region, Asia-Pacific is growing at a high rate and is projected to dominate the global market.

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Automotive Instrument Cluster Market: Growth Drivers

Rising demand for electric vehicles and changes in instrument cluster technology will drive the market demand rate

The global automotive instrument cluster market is expected to grow due to the growing sale of electric vehicles (EVs) across the globe. The rising fuel prices along with the severe impact of burning non-renewable sources of fuel on the environment has led to an urgent need to replace petrol and diesel-powered vehicles with more sustainable solutions. EVs offer a higher sustainability index and have become widely popular among consumers.

In 2023, more than 1.5 million electric vehicles were sold in India alone. An important attribute of the growing demand for EVs is the increasing investment by regional governments to promote EV adoption. Electric vehicles often employ modern digital automotive instrument clusters. Moreover, the technical solutions used in electric vehicles are highly advanced. The market players are experimenting with additional developments that can be made to make instrument clusters more interactive and comprehensive.

For instance, in November 2023, Auklr, an Indian start-up, announced the launch of a new and intelligent instrument cluster specially developed for electric vehicles. The company aims to achieve cost-efficiency with the new solution and rank among the top 5 automotive Artificial Intelligence (AI) companies at a global scale. Auklr offers a customizable digital instrument cluster with a highly advanced user interface and over-the-air updates among other benefits.

Growing launch of new automobiles with advanced instrument clusters will become an essential growth propeller

The automobile industry is one of the rapidly expanding sectors. At present times, the industry is registering massive growth in the number of product offerings in the form of affordable and innovative automobiles for consumers across the globe. Additionally, automobile companies are keen on customizing vehicles based on the needs of the consumers depending on the areas they live in.

In September 2023, global automobile manufacturer Hyundai announced that it will launch a fully electric version of the compact sport utility vehicle (SUV) Casper equipped with a reinvented instrument cluster in digital form thus helping the global automotive instrument cluster market grow.

Automotive Instrument Cluster Market: Restraints

High cost of repair in case of a malfunctioning instrument cluster may restrict the market expansion rate

The global industry for automotive instrument clusters is expected to be restricted due to the high cost associated with the repairing of a malfunctioning instrument cluster. As per official research, the cost of repairing advanced automotive instrument clusters can be around USD 800 to USD 910.

The number includes human labor charges and the cost of the new parts. Furthermore, it may be difficult to obtain parts for certain vehicles such as older models that have become obsolete. The absence of a sufficient labor workforce may further impact the market growth rate.

Automotive Instrument Cluster Market: Opportunities

Expansion of automakers in new markets will create high-growth opportunities

The global automotive instrument market is expected to generate high growth opportunities due to the increasing expansion strategies adopted by automakers to enter new markets especially emerging countries that are witnessing a change in consumer lifestyle. In March 2024, XPeng Motors, originally from China launched two new electric vehicles in the German market. The company plans to expand its presence in Europe in the coming years.

In July 2023, reports suggested that leading French automaker Renault was planning to re-enter the Indian market since the country is witnessing a sharp rise in the sale of mid-size sports utility vehicles (SUVs).

Renault is expected to launch new models by 2025 in India. In an unexpected move, leading e-commerce company Amazon announced a partnership with Hyundai in December 2023. This collaboration will allow the former to sell new cars made by Hyundai through its website. The automaker can benefit from the robust supply chain that has been built by Amazon over the years. Such strategic entries into new markets can lead to higher demand for vehicle parts and technologies.

Rising demand for user cars may generate higher demand for instrument cluster

The used cars segment is expanding at a steady rate. The growing efforts toward regulating the market by announcing new laws and implementation policies have helped the used vehicle sector become more organized. Pre-owned cars may require extensive maintenance work before they are made available for purchase in the commercial market. The growing use of used cars across the globe is projected to help drive the demand in the global automotive instrument cluster industry as well.

Automotive Instrument Cluster Market: Challenges

Cybersecurity concerns in digital solutions may challenge the market expansion rate

The global automotive instrument cluster industry is expected to be challenged by the growing cybersecurity concerns associated with modern digital solutions. Connected automotive instrument clusters are vulnerable to security threats leading to loss of personal data. In addition to this, the rapid development and innovation in instrument cluster technology puts older technologies at risk of becoming obsolete.

Automotive Instrument Cluster Market: Segmentation

The global automotive instrument cluster market is segmented based on vehicle type, cluster type, application, and region.

Based on vehicle type, the global market divisions are commercial vehicles, passenger cars, and two-wheelers. In 2023, the highest growth was observed in the passenger car segment. The increasing sale of passenger vehicles globally was the preliminary driving factor. Additionally, the market players are offering improved car features to attract more buyers. As per the European Automobile Manufacturers’ Association, car sales in Europe increased by 14% in 2023.

Based on application, the global automotive instrument cluster industry segments are tachometer, odometer, and speedometer.

Based on cluster type, the global market is divided into hybrid, digital, and analog. In 2023, the analog segment was the highest revenue generator. The segmental growth is the result of a higher preference for analog systems for tachometers in automobiles. The rising advancements in technology for digital display and growing demand for connected devices with improved user interfaces may propel the demand for digital clusters. New tachometers cost between USD 150 to USD 370.

Automotive Instrument Cluster Market: Report Scope

Automotive Instrument Cluster Market: Regional Analysis

Asia-Pacific to register the highest demand during the forecast period

The global automotive instrument cluster market is expected to witness the highest growth in Asia-Pacific during the forecast period. Japan and China are among the leading exporters of automotive parts. China has large manufacturing facilities. It is also the leading producer and exporter of automobiles. In 2023, China’s total exports were valued at over USD 100 billion as per market research. The growing regional electric vehicle market along with high demand for two-wheeler vehicles are major driving forces for growth in Asia-Pacific.

In 2024, the Indian two-wheeler market is expected to reach over USD 300 billion. The growing disposable income of the general population along with rising investments in the regional automobile sector has further led to higher demand and application of automotive instrument clusters. In July 2023, Japan’s most valued automobile company Toyota announced that it plans to set up a new ancillary business in the Indian market as the country is steadily working toward becoming the manufacturing hub. In February 2024, China’s BYD announced that it would set up a new EV manufacturing plant in Mexico. India, on the other hand, is partnering with African nations to manufacture and sell automotive vehicles.

Automotive Instrument Cluster Market: Competitive Analysis

The global automotive instrument cluster market is led by players like:

• Denso Corporation
• Yazaki Corporation
• NVIDIA Corporation
• Continental AG
• Panasonic Corporation
• Nippon Seiki Co. Ltd.
• Robert Bosch GmbH
• Magneti Marelli S.p.A.
• Aptiv PLC
• Visteon Corporation
• Marelli Holdings Co. Ltd.
• Bosch Limited
• Alps Alpine Co. Ltd.
• Stoneridge Inc.
• Delphi Technologies.

The global automotive instrument cluster market is segmented as follows:

By Vehicle Type

• Commercial Vehicle
• Passenger Car
• Two Wheelers

By Application

• Tachometer
• Odometer
• Speedometer

By Cluster Type

• Hybrid
• Digital
• Analog

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa