The increased use of technology while driving, coupled with the proliferation of dashboard and center information display touchscreens, have added to driver distraction in recent years. However, some automotive experts are looking to head-up displays (HUDs) with great expectations that presenting information directly in the driver’s line of sight could aid in the quest to reduce driver workload and the need to look away from the road.

Released this week is a new IDTechEx report, “Automotive Heads-up Displays 2024-2034: Technologies, Players, Opportunities,” that reviews the two-dimensional (2D) and more-futuristic three-dimensional (3D) imaging techniques set to revolutionize the automotive sector.

The current dominant technology in this space is TFT-LCDs (thin-film-transistor liquid-crystal displays), providing good image quality, durability, and maturity, wrote Dr. Xiaoxi He, Research Director at IDTechEx, and author of the report. Most importantly, the technology is very scalable and comparably inexpensive, compared with market alternatives, however it lacks depth when used as a HUD.

LCDs, OLEDs (organic light-emitting diodes), and micro-LEDs are all examples of 2D technologies that display images directly onto a flat surface. Dr. He says they can be used to create an illusion of 3D images, where a 2D image is shown to the left eye and a slightly different image is shown to the right eye for a parallax effect. However, the extended use of the technique can induce an effect known as vergence-accommodation conflict, the disparity in distances between the virtual object and the eye, causing user discomfort and nausea.

Industry designers are increasingly going beyond displaying diagnostic and car information and envisioning HUDs that identify potential hazards on the road and assist while driving. Enter AR HUDs (augmented reality HUDs) with increased “immersiveness,” providing imaging depth and extended field of view (FOV) while signaling key areas of interest on the road.

 

Driven by ADAS and EV applications

The global automotive AR HUD market is expected to reach a value of $6.39 billion by 2028 from $2.46 billion in 2022, growing at a CAGR (compound annual growth rate) of 17.26% from 2022-2028, according to the “Global Automotive AR HUD Market – Outlook & Forecast 2023-2028” report added to ResearchAndMarkets.com’s offering earlier in April.

According to the report, the increasing demand for enhanced driving experiences and safety features fuels the competition, fostering a landscape marked by continuous technological advancements and strategic collaborations. Established automotive technology giants such as Continental, Denso, Visteon, and Harman are leading the field, leveraging their extensive expertise to develop cutting-edge solutions. Meanwhile, “tech-driven companies” like WayRay, Hudway, and Envisics are making notable strides with innovative approaches to AR.

Other notable competitors in the space are Hyundai Mobis, Appotronics, and FIC (First International Computer).

A significant driver behind the growth in the AR HUD market is said to be the increasing demand for ADAS (advanced driver assistance systems), which encompass a range of features and functionalities designed to enhance vehicle safety and improve the overall driving experience. HUD technology plays a crucial role by integrating key information—such as navigation prompts, collision warnings, and speed limits—directly into the driver’s line of sight on the windshield. As ADAS becomes more prevalent in vehicles, the demand for intuitive and real-time information visualizations is rising to provide a more immersive and convenient driving experience.

The global demand for EVs is also propelling the growth in AR HUDs, which can enhance the driving experience by providing real-time information about battery status, range, charging points, and navigation directly on the windshield. Manufacturers recognize the importance of combining cutting-edge display technologies with the rise of EVs to offer a more holistic and compelling driving experience.

 

CGH and LFDs

Two promising technologies that can enable 3D imaging of AR HUDs are computer-generated holography (CGH) and light field displays (LFDs). Several companies and research groups are evaluating these technologies, according to IDTechEx’s He. Holography, especially, appears to be gaining traction for some notable reasons.

The first relates to its ability to project virtual images with true depth cues and without resolution loss. The varying depth cues offer a more comfortable driving experience and are more helpful with signaling road obstacles that naturally have varying depths.

Secondly, a display technology that works well under varied ambient conditions is essential, as key information must be visible in very bright or dark conditions. CGH uses a coherent light source, most often a laser, which is naturally bright and performs consistently under a range of ambient light environments.

However, a challenge for holographics is a poorer image quality than LCDs and OLEDs mainly due to an effect known as speckle, which means that the technology requires further maturity for greater adoption.

To compete with the dominant TFT-LCD technology, companies specializing in holographic HUDs focus on two key areas: lowering the cost of devices and reducing their form factor. Currently, larger form factors and increased cost mean these devices are only suitable for larger, more expensive vehicles.

 

Overcoming cost barriers

The development, integration, and manufacturing of AR HUD systems involve advanced technologies, specialized components, and intricate engineering processes—contributing to elevated production costs, according to ResearchAndMarkets.com. These higher costs are subsequently transferred to consumers, making vehicles with the technology relatively expensive.

The automotive market is particularly price-sensitive, and while AR HUDs offer valuable safety and convenience features, the premium associated with this technology can limit its accessibility to a broader consumer base. The challenge lies in balancing advancing capabilities and driving down production costs to make the technology more economically viable for widespread adoption across different vehicle segments and price points.