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Global Industry Hub. (Oct, 2024). Instrument Cluster Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2032) Global Industry Hub. Retrieved
Report ID: GIH 1106 | Oct 2024 | Format:
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Global Industry Hub. (Oct, 2024). Instrument Cluster Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2032) Global Industry Hub. Retrieved
The Instrument Cluster Market size was valued at US$ 11.48 Bn in 2025, it is estimated to grow at a CAGR of 6.78% from 2025 to 2032 and reach US$ 18.12 Bn by the end of 2032. Technological advancement at a very fast pace is the key driver for this demand in automotive instrument cluster. OLED and LCD screens can give quite high resolution and bright display, conveying plentiful information in a car.
An instrument cluster is an assembly mounted immediately in front of the steering wheel and puts all the instruments in the line of sight of the driver. A wire harness mates the cluster to the vehicle. The back of the cluster usually mounts with a multi-pin connector for the harness. So, it's easy to pull out the cluster. Normally, the fusebox located under the dash on the driver's side of the vehicle powers the cluster. It is so constructed to provide the driver with current information relating to the status of the vehicle.
The market for automotive instrument clusters is becoming highly broadening, driven by the growth of the automobile sector in developing countries and by an increased demand in the high-end passenger car market. Along with these factors, the growth of the industry is being supported by an increase in entertainment system and vehicle production and sales. With an increased demand for a full digital cockpit solution, the market is likely to grow.
Some of the major players functioning in the instrument cluster industry include:
Utility Segment
The types of the global instrument cluster market are divided into speedometer, tachometer, odometer, oil pressure gauge, coolant temperature gauge and others. As it is the central piece of any instrument cluster from where the driver gets everything about the vehicle, the market was led by a speedometer in 2024.
Vehicle Type Segment
The global instrument clusters include ICE vehicle, electric vehicle battery (EVB), plug-in hybrid electric vehicle (PHEV), hybrid electric vehicle (HEV), and fuel cell electric vehicle (FCEV). The increased demand for data to be filtered on the basis of driving conditions and the rising need for advanced features in electric vehicles led the market to be dominated by ICE vehicles in 2024.
Technology Segment
The instrument cluster market worldwide is segmented into four segments: hybrid, analogue, digital, and others. Hybrids dominated in the market during 2024, simply because of the fact that they give modern displays themes, colors, even 3D images, which makes it more efficient to notice a dynamic change in speed.
The global instrument cluster market is comprised of three segments: large-scale organisations, semi-urban mid-scale organisations, and small-scale organisation. Large-scale businesses dominated the market in 2024 because such businesses can produce volumes that are more and accommodate a wider range of product portfolios.
End User Segment
The global instrument cluster market has been segmented into two-wheelers, off-highway vehicles, agricultural vehicles, passenger automobiles, and commercial vehicles. Since the adoption of digital displays and instrument clusters is more in passenger vehicles like small, hack back, and others, passenger cars held the largest share of the market in 2024.
| Report Coverage | Details |
|---|---|
| Base Year | 2024 |
| Base Year Value | USD 10.75 billion |
| Forecast Value | USD 18.12 billion |
| CAGR | CAGR of 6.78% |
| Forecast Period | 2025-2032 |
| Historical Data | 2020-2024 |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Segments Covered | By Utility, By Vehicle Type, By Technology, By Enterprise Size, and By End-User |
| Region Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
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Driver
Global growth in the automobile production
Rising car production in global prime locations is one of the key drivers in the growth of market for instrument clusters in the forecast period. The major automobile companies' presence in these key markets of Asia-Pacific, Europe, and North America coupled with the number of supportive government initiatives and policies is going to boost up the production of cars which will have a very positive impact on the growth of the instrument cluster market over the course of the forecast period. The sales of passenger automobiles are significantly improving the production of this segment, which is being fuelled by increasing disposable incomes and living standards. Therefore, the demand for instrument clusters is sharply increasing.
Restraint
Cost constraints
Cost is one of the significant barriers that currently restrict the market for instrument clusters. Instrument clusters have undergone a dramatic change from analog gauges to digital displays, where the most advanced technology including touchscreens, high-resolution display, and built-in communication capabilities are used.
Advances in functionality and user experience have made things really hot for the overall cost of the instrument cluster system. It's quite demanding on both the hardware components as well as software systems to introduce a high-resolution screen with vibrant color along with multi-functionality and customization capability. The use of touchscreens and connectivity options also increases the cost with additional sensors, processors, and connectivity modules.
Higher cost of instrument clusters is a challenge for manufacturers as well as for consumers. Designing the latest technologies within the budget is a challenge for manufacturers. They need to invest in the supply chain, manufacturing, and research & development to provide cost-effective solutions.
Actually, development and production costs affect profit margins and the competitiveness of an instrument cluster in the market. Advanced automobile instrument clusters that are costly to develop and produce may deter consumers. Generally speaking, a car that now has costlier instrument clusters may turn out to cost more than previous models, hence becoming less affordable for most prospective buyers. This can reduce consumer demand for automobiles with advanced instrument clusters, especially in economy-sensitive markets.
Cost restrictions can also play a role in determining the uptake of advanced instrument clusters in the aftermarkets. Consumers are not motivated to update their vehicles with the latest instrument cluster technology since reprogramming or fitting new instrument clusters into existing vehicles is pretty expensive.
Opportunity
Growing requirements for electric automobiles and advanced instrument clusters
The first significant opportunity for instrument clusters in the market comes with the requirement for advanced instrument clusters that meet the new demands imposed on electric cars (EVs). There is a growing demand for EVs.
The adoption of EVs by people has become staggeringly fast because of the focus on green transport throughout the world and environmental consciousness. The increasing adoption of electric vehicles for day-to-day commute drives the need to have the improved instrument clusters that will be offering critical information related to EV-specific issues such as state of the battery, range estimate, energy consumed, and charging infrastructure.
The electric vehicle instrument clusters are constructed to be highly informative for the driver, so that he can benefit as much as possible from both economy and performance for his or her automobiles.
Common to such instruments are instant updates on the battery status, visualization of energy flow and charging station locational search, as well as indicators for regenerative braking. With the booming electric vehicle market and more people opting for electric vehicles, the need for precise and high-end instrument clusters specific for electric cars will also increase.
Moreover, along with the development of autonomous driving technology, producers of instrument clusters have even better possibility. As the number of autonomous vehicles grows, the role of the instrument cluster changes from merely displaying information to really providing vehicle-to-occupant interface.
COVID-19 Impact Analysis
The number of sectors affected by the COVID-19 pandemic varies from one continent to another worldwide, although the most affected sector until now is the car industry. Among the affected sectors include the instrument cluster market. Instrument clusters refer to the displays behind the steering wheel.
These displays give the driver critical information such as speed, levels of fuel, and warning lights. The epidemic caused tremendous disruption in the global supply chains, industry processes, and consumer demand. Many manufacturers had to close their facilities temporarily due to lockdown regulations to respect the regulations and ensure the safety of their staff, thus affecting car production. This therefore reduced car manufacturing and consequently reduced demand for instrument clusters.
The epidemic further resulted in a fall in consumer confidence and purchasing power. As financial insecurity and the risk of job loss from the epidemic loomed large, people became more frugal in their spending on all non-essential goods and services like cars. As a result, fewer new automobiles were in demand, and that had a direct impact on the instrument cluster industry since most of these components are fitted into new cars.
The epidemic has also altered consumer preferences and behaviour. Increased working from home, as well as isolation policies, have decreased the use of automobiles for commuting and recreation. The new pattern decreased demand for new automobiles, affecting the instrument cluster market.
In addition, the possibility of purchasing newly released vehicle was restricted for consumers by closing showrooms and cease to be operating of non-essential businesses. It was complicated for automotive manufacturers to sell the cars and to promote the installation of new instrument clusters since test drives and visiting showrooms was suddenly reduced drastically.
Yet, despite this fact, during pandemic time some promising tendencies in the instrument cluster market were observed. As more consumers shopped for less expensive alternatives than public transit, the demand for used vehicles grew. As a buyer updated or replaced old instrument clusters within used vehicles, the aftermarkets section of the instrument cluster industry grew like a mushroom.
The epidemic also expedited the adoption of integrated and digital technology in the automotive industry.
The geographic distribution of the market for the instrument clusters is into North America, South America, Europe, the Middle East, Africa, and Asia Pacific. Since China, India, and the ASEAN nations manufacture a considerable amount of autos, APAC is expected to have a significant market share.
As the North American region took up technology very early and has a well-established automobile industry, the market is expected to be high in this region. Europe is expected to grow at a significant rate over the projection period due to the fact that car manufacturers have recently increased investment in facility expansions to better handle vehicle production with the sudden increase in demand.
Continental AG, an innovative technology and service company, and Pioneer Corporations agreed in May 2020 on a strategic cooperation for a new and improved user experience. According to the agreement, Pioneer Corporation will provide the full infotainment subsystem for cockpit solutions. The integrated instrument cluster infotainment system will deliver a comprehensive user experience.
Segments Covered in the Report
By Utility
By Vehicle Type
By Technology
By Enterprise Size
By End-user
By Geography
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