Augmented Reality in Cars in North America and the

European Union
Overall AR-enabled Head-up Displays to Gain 10.4% Market Share by 2025

NF59-18
June 2015
Contents

Section Slide Number

Executive Summary 3

Research Scope, Objective, Background, and Methodology 13

HUD Market Analysis 20

Total HUD Market Penetration 30

HUD Technologies and Penetration 34

HUD Case Studies 43

HUD Future Outlook 48

Key Conclusions 50

Appendix 54

NF59-18 2
 Executive Summary

NF59-18 3
Key Findings
In an attempt to increase driver safety, OEMs are trying to integrate advanced driver assistance systems
(ADAS) content and warnings into head-up displays (HUDs).

Augmented Reality in Cars: Key Findings, NA and EU, 2014–2021

The HUD market is expected to grow at a compound annual growth rate (CAGR) of 41.9% from
1 2014 to 2021 across North America and Europe. Augmented reality (AR) HUD is expected to hit
the market by 2018.

The combiner HUD will have high penetration in the medium and small segment cars, considering
2 its cost effectiveness and ease of integration inside the dash by 2017.

For the next couple of years, thin film transistor (TFT) will be the perfect display technology
3 mainly owing to cost and performance. Digital light processing (DLP) and laser displays will be
prominent when AR-HUD hits the market by 2018.

Ford, Hyundai, BMW, Audi, and Mercedes-Benz are key OEMs likely to introduce AR-HUD in
4 selective models by 2018. Technology enablers including Nippon Seiki, Continental, and Denso
are working with OEMs on this technology.

The industry is now moving towards a wide field of view (FOV) of up to 12° * 5° and brightness of
5 the virtual images up to 15,000cd/m² with low-power consumption.

Key: NA = North America; EU = European Union;

OEMs = Original Equipment Manufacturers
Source: Frost & Sullivan

NF59-18 4
Timeline Snapshot
DLP and laser display are compelling alternatives to the current LED/TFT display because they offer bright
images, higher performance, and low-power consumption.

Augmented Reality in Cars: Timeline Snapshot, NA and EU, 2002–2021

OEMs

All Major OEMs

Mazda, Mercedes-Benz, Cadillac, Lexus, Toyota

Peugeot, GM, Audi, BMW

Information
Displayed

ADAS, Vehicle Diagnostics, Real-time Navigation

Music, Navigation
Vehicle Speed and Warnings Messages

Scanned Laser-HUD, AR-HUD

Tech
HUD

Windshield HUD, Combiner HUD

Scanned Laser, DLP

Technology
Display

TFT-LCD
Vacuum Fluorescent Display
(VFT)

2002 2014 2018 2021

Key: LED = Light Emitting Diode; LCD = Liquid Crystal Display
Source: Frost & Sullivan

NF59-18 5
Technology Snapshot
Scanned laser technology is expected to replace LCD-based HUD in the mid-term with reduction in
electronics. The Range Rover Evoque features integrated laser HUD with laser holographic projection.

Augmented Reality in Cars: Display Technology Snapshot, NA and EU, 2014–2021

TFT
High
(HUD,ICD)

Laser Projection with

Holographic Technology
(HUD)
Organic Light Emitting
DLP Diode (OLED)
(HUD) (HUD,ICD)
Impact

Low Electronic Paper Display

VFD (R&D)
(ICD)
Field Emission Display
(R&D)

Low Certainty High

High Impact Key: LCD = Instrument Cluster Display; R&D = Research and Development Source: Frost & Sullivan

NF59-18 6
Market Trends
HUDs will be largely limited to information projection that is relevant while driving. Projecting additional
infotainment functionalities will lead to driver distraction.

Augmented Reality in Cars: Market Trend, NA and EU, 2014–2021

Market Trends – Europe Market Trends – North America

System Cost: System Cost:

• Integration of windshield HUD is different for
• HUDs require treated windshields and special
each model depending on size and shape of
lenses which increase the cost of this
windshield, increasing the operational cost of
technology, limiting penetration.
the system.

Combiner Market: Combiner Market:

• Combiner HUD uptake rate is ~60% within • The combiner HUD penetration is higher as it
PSA group showing strong demand and is cost effective and has more use cases than
penetration in Europe. conventional HUDs (e.g., Mazda, USA).

Safety Regulations: Smartphone Integration with HUD:

• European NCAP safety rules require 50% of • Technology enablers are looking to integrate
new cars to have ADAS. This helps to smartphones into HUD. Navdy is a first-mover
penetrate AR-HUDs. in this space.

ADAS Integration: Customer Awareness:

• Integration of ADAS and AR-HUD is likely to • Customer awareness on HUD has increased
drive the market to higher penetration from and drivers are looking to integrate HUD into
2020. their cars.
Source: Frost & Sullivan

NF59-18 7
Augmented Reality
In the future, the system will receive information about an accident in advance. A danger symbol with high
attention value can be placed in the driver’s field of view to alert him.

Augmented Reality in Cars: Augmented Reality, NA and EU, 2014–2021

Why AR-HUD: Producing an Augmented View on HUD:

• Reduce driver distraction
• Enhance safety and driving experience
• To support ―Eyes on Road and Hands on Wheel‖
• Support autonomous cars
Information Displayed:
• Lane departure warning (LDW)
• Adaptive cruise control ( ACC)
• Blind spot detection (BSD)
• Vehicle speed
• Turn-by-turn directions
• AR-creator, key component: evaluates number of
sensor data and streams in order to place the
graphical elements in the driver’s AR-HUD FOV
• Mono-camera: geometry layout of the road
• Radar sensor: Size and position on any object in
front of the vehicle
• Navigational data services: e.g., vehicle-to-vehicle
or traffic data centers, GPS data
• Eye box: display on the HUD that shows all data
fused together from the AR-creator and produces
geographical information that is then displayed

Interested OEMs: Interested Tier I

Suppliers: Key Industry News on AR-HUD:
• Audi
• BMW • Continental • Continental: AR-HUD ready for series production by
• Nippon Seiki 2017
• Mercedes-Benz
• Denso • Hyundai: AR-HUD ready with its Model Genesis
• Ford
• Luxoft • Ford: partnered with Israeli startup Mishor for AR-
• Hyundai
HUD from 2016

Source: Frost & Sullivan

NF59-18 8
HUD Penetration
HUDs project important information such as navigation and speed on the windshield. The technology is
preferred mostly to minimize driver distraction as the projected image is in the driver’s line of sight.

Augmented Reality in Cars: HUD Penetration Snapshot, Global, 2014–2021

Combiner HUD is expected to have a higher penetration rate because it is cost effective and very easy to
integrate into any medium and small car segment.
Penetration of HUDs
Comments

• Cost of electronics in CAGR 24.4% 52.2% 12.1%

HUDs is expected to
come down.
18%
• OEMs are looking to
16%
integrate HUD in
medium segment cars 14%
by 2017. 12%
• Customer awareness 10% 2014
will increase. 8% 2015
• Europe is expected to 6% 2021
lead the market
4%
followed by North
2%
America, China, and
Brazil. 0%
W-HUD C-HUD AR-HUD
• Combiner HUD is a key
element for higher
Key: W-HUD = Windshield HUD; C-HUD = Combiner HUD
penetration.
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 9
Supplier Benchmarking
Currently, Continental is the HUD market leader globally. Continental has a scalable portfolio of all types of
HUD.

Augmented Reality in Cars: Supplier Benchmarking, NA and EU, 2014–2021

Technology Scanned Laser

Enablers W-HUD C-HUD AR-HUD Technology Major OEM’s
Audi, BMW,
Continental Yes By 2015 Expected 2017 No
Mercedes Benz
Bosch No Yes No No BMW

Expected 3 American OEMs

Denso Yes Expected 2020 No
2017 and Japanese OEM

Navdy No Yes No No All Major OEMs

Visteon Yes Yes Expected 2020 No Citroen, Pegeout

Nippon
Yes Yes Expected 2020 No Mazda, GM, BMW
Seiki

Two Tree
No No No Yes Range Rover
Photonics

Luxoft Yes No Expected 2018 No Ford, Diamler

Source: Frost & Sullivan

NF59-18 10
OEM Analysis
Mass market OEMs such as Ford are partnering with new technology firms to come up with AR-based HUDs
that go beyond navigation.

Augmented Reality in Cars: OEM Comparative Analysis, NA, 2014–2021

Embedded Capacitive Handwriting Gesture
OEM Voice Touch Recognition HUD Recognition
Audi  N/A   2018

BMW  2016/17   2018

Chrysler     2016

Chevrolet     

Cadillac   Only in China  Touch

Ford    2016 2018/19

Honda    2016/17 2018/19

Hyundai    2016 2018/19

Lexus     

Mercedes-Benz   2015 C Class  

Toyota     2018/19
N/A = Not Available Source: Frost & Sullivan

NF59-18 11
OEM Analysis (continued)
Of the HUDs offered in the market today, 100% are windshield-based which offer minimal information that is
purely navigation oriented.

Augmented Reality in Cars: OEM Comparative Analysis, EU, 2014–2021

Embedded Capacitive Handwriting Gesture
OEM HUD
Voice Touch Recognition Recognition
Audi  N/A   2018

BMW  2016/17   2018

Ford  2016  2016 2018/19

2018
JLR    Laser HUD
E-Field Sensing

Mercedes-Benz   2015 C Class  

Opel     

Renault     

Toyota     

VW     2020

Volvo    2015 
N/A = Not Available Source: Frost & Sullivan

NF59-18 12
 Research Scope, Objectives, Background, and
Methodology

NF59-18 13
Research Scope and Objectives

Base Year 2014

Study Period 2014 to 2021

Forecast Period 2015 to 2021

Vehicle Type Passenger cars

Geographical Scope North America (NA), European Union (EU) (28 countries)

Augmented Reality in Cars: Vehicle Sales, NA and EU, 2013–2021

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021
North
18.3 M 18.9 M 19.4 M 19.7 M 19.9 M 20.2 M 20.4 M 20.6 M 20.8 M
America
European
17.8 M 18.2 M 19.2 M 20.1 M 21.2 M 22.0 M 22.9 M 23.5 M 24.0 M
Union

Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 14
Geographic Definitions and Research Timeline

Base Forecast
Year Period

Timeline Short Term Medium Term Long Term

2014 2015 2016 2017 2018 2019 2020 2021

Geographic Regions

The regional markets covered in this study are:

• North America consists of the United
States and Canada.
• European Union consists of 28 countries.

Source: Frost & Sullivan

NF59-18 15
Research Aim and Objectives

Aim

The aim of this study is to research and analyze the HUDs market in North America and the European
Union. It identifies the various segments and potential for growth.

Objectives

• To provide a strategic overview of the market, HUD segments, and related case studies

• To uncover the available market potential

• To provide an overview of the level of OEM involvement in this space of AR in HUD for passenger
vehicles

• To discuss 3 big market predictions

Source: Frost & Sullivan

NF59-18 16
Key Questions This Study Will Answer

Augmented Reality in Cars: Key Question This Study Will Answer, NA and EU, 2014–2021

What are the basic HUD segments?

What are the technological differences between various HUD technologies? How do these
technologies compare in terms of pricing and parts?

What is the current market scenario? What factors influence OEMs in implementing HUD in
passengers cars?

What are the future implementation possibilities AR in HUD ?

Which HUD technology has higher potential for market penetration, and what factors will influence
that penetration?

Source: Frost & Sullivan

NF59-18 17
Research Background

This study summarizes content from several of Frost & Sullivan’s recently published and in-progress
research services in the area of commercial vehicle telematics, including the following:

• NB77-18: Strategic Outlook of Global Hybridization Trends in Select Off-Highway Commercial Vehicle
Market—Completed

• NADB-18: Strategic Analysis of Select Chinese Commercial Off-Highway Vehicle Market —Completed

• P317-18: Strategic Analysis of Off-Highway Vehicle Market in India—Completed

• NE0D-18: Strategic Analysis of Gesture Recognition Market in North America and Europe—Completed

• NEC8-18: Strategic Analysis of Real-time Traffic Information Market in Europe and North America—
Completed

This study is also supplemented by ongoing interactions with vehicle manufacturers, suppliers, service
providers, and software providers in the area of connected vehicle services.

Source: Frost & Sullivan

NF59-18 18
Research Methodology

Research Methodology: Frost & Sullivan’s research services are based on secondary and primary research
data.
Secondary Research: Extraction of information from existing reports and project material within the
Frost & Sullivan database includes data and content gathered from technical papers, specialized magazines,
seminars, and Internet research.
Primary Research: More than 10 interviews have been conducted over the phone by senior
consultants/industry analysts with original equipment suppliers, regulation authorities, and Tier I suppliers.
Primary research has accounted for 80.0% of the total research.

Augmented Reality in Cars: List of Key Participants, NA and EU, 2014

Nissan Mazda

PSA Two Trees Photonics

Denso Luxoft

Continental

Texas Instrument

Source: Frost & Sullivan

NF59-18 19
 HUD Market Analysis

NF59-18 20
Types of HUD
Three distinct HUD types are emerging: pure (standard) windshield HUDs, combiner HUDs for limited space
and lower cost, and AR-based HUDs for exhibiting sensor-fused safety data.

Standard Windshield Augmented Reality

Combiner HUD
HUD HUD

Image Source: Continental Image Source: Continental Image Source: Continental

Dominated by German Focus on cost reduction, Focus on harnessing active

automakers offering color limited space installation, and safety sensor information
LCD-HUD suitability for mass market (e.g., radar, camera) and is
models expected to be primarily used
• Audi for ADAS and vehicle
• BMW • 2015: mass production automation information
• Mercedes-Benz expected to start guidance
• Cadillac • 2016/17: expected to be
• Lexus breakout year • 2016/17/18 expected to be
key years

Source: Frost & Sullivan

NF59-18 21
Windshield HUD Segmentation
OEMs are constantly exploring various imaging technologies that will provide larger FOV and try to display
the virtual image further down the windshield while maintaining good quality and brightness.

Augmented Reality in Cars: Windshield HUD Segmentation Snapshot, NA and EU, 2014–2021

Image Size in Image Size in Display TFT-Panel

Volume (mm) (Degrees) Technology size(W*H) (mm²)

~ 3 liters 230*96 mm 6° * 2.5° TFT 40.89 * 20.44

~ 6 liters 308*115 mm 8° * 3° TFT/DLP 68.40 * 41.05

DLP/ Scanned
~ 12 liters 385*192 mm 10° * 5° Nil
Laser
DLP/ Scanned
~ 14 liters 462*192 mm 12° * 5° Nil
Laser
Key: TFT = Thin Film Transistor; DLP = Digital Light Processing

Example: 12°

• Horizontal Field of View (HFOV) = 12° 2.45m

• Vertical Field of View (VFOV) = 5° 5°

• Virtual Image Distance (VID) = 2.45m
Source: Texas Instrument; Frost & Sullivan

NF59-18 22
Challenging and Influencing Factors
Need for driver distraction reduction through prioritization of information projected to driver influences HUD
market.

Augmented Reality in Cars: Challenging and Influencing Factors, NA and EU, 2014–2021

Challenging Factors Influencing Factors

Cost of Implementation:
• High cost associated with installation limits its
penetration.
• Specially treated windshield is required which
increases the cost.
• Higher number of lenses increases complexity.
Focus on Driver Safety:
• Reducing driver distraction is vital to both suppliers
and OEMs.
• NHTSA recommends the maximum of 12 seconds
for allowing driver eyes off the road.
• Implementing ADAS features reduces cognitive
load.

Space Constraints: Brand Differentiator:

• More optical lenses increases the optical box size.
• The bigger the optical box, the more space is required
for installation.
• Space is available only in premium segment vehicles.
• OEMs use this technology as a brand differentiator
in the premium segment vehicles.
• With reduction in prices, OEMs look to make HUD a
standard in premium cars to increase their brand
value.

System Integration: Customer Awareness:

• Integration of ADAS is a challenge because it
increase the cost of the system.
• Each device needs to be calibrated to its vehicle
windshield.
• Customer awareness on HUD has increased and
drivers are looking to integrate HUD into their cars.
Source: Frost & Sullivan

NF59-18 23
Display Technologies
Though OLED possesses several advantages over LCD-TFT displays, OLED market penetration is curtailed
due to factors such as high cost and shorter life span. LCD will remain the dominant technology for a few years.

Augmented Reality in Cars: Display Technologies, NA and EU, 2014–2021

Scanned Laser
TFT-LCD OLED
HUD
• Brightness, contrast,
• LCDs used in
• In low ambient good image quality,
automotive displays
conditions OLEDs • Less power
where contrast and
achieving higher consumption
high-quality color
contrast than LCDs • Laser light also
Key Features demand was less
• Thinner than LCDs polarised which is
• Preference in
and offer wider necessary for
automobiles for
viewing angles with reflection
LCDs’ long life, low
faster response time • High cost restricting
power consumption,
• High cost restricting penetration in the
and high quality
penetration current market
imaging
situation

• Actively used in the • Emerging market

• OEMs using this • Emerging market
market
technology: BMW, • Jaguar Land Rover
• Most of the OEMs
Market Lexus RX using this technology
using this technology
Information • Used in ICD, HUD, and • Used in HUD
• Used in ICD and HUD
headlights • Backlighting not
• LED backlighting
• Backlighting not required
required
required Source: Frost & Sullivan

NF59-18 24
Backlighting Snapshot
The continual acceleration of LED backlighting applications in automotive displays is driven by an insatiable
demand for higher performance and cost effectiveness.

Augmented Reality in Cars: Backlighting Snapshot, NA and EU, 2014–2021

Cold Cathode Fluorescent Lamps

Parameters Light Emitting Diode (LED) (CCFL)
Power Low electric power from automotive bus
High
Consumption unit 20–30% less
Should be replaced every
Life Cycle Entire life of a vehicle (11.5 years)
10,000 hours
Size Very small Large bulbs

Heat Dissipation Low Needs heat sinking setup

Cost Cost efficient Not cost-effective

Toxic Emission Nil emission Toxic mercury vapor

Installation Permanently embedded into the vehicle Not embedded because requires
Method application replacement on regular intervals
High dimming ratio capability
Key Benefit Dimming not possible
10 times greater than CCFL

Source: Frost & Sullivan

NF59-18 25
OEM Benchmarking
The uptake rate of combiner HUD among PSA group in Europe is about 60%, which clearly highlights that
combiner HUD is expected to dominate the small and medium segment cars.

Augmented Reality in Cars: OEM, Benchmarking, NA and EU, 2014–2021

Windshield Scanned Laser HUD-enabled
OEMs HUD Combiner HUD AR-HUD Technology Models Regions

BMW Yes Expected 2017 Expected 2018 No 3, 7 series, X5,X6 EU, NA

Audi Yes Expected 2017 Expected 2018 No A6, A7, A8 EU, NA

Mercedes-
Yes Expected 2017 No No C, S -Class EU, NA
Benz

Ford Yes Expected 2017 Expected 2018 No Ford Fusion,2013 NA

Mazda Expected 2017 Yes No No Mazda 3S, 3I EU, NA

Peugeot No Yes Expected 2020 Expected 2020 3008,508,5008 EU,

Volkswagen Yes No No No Passat 2015 EU

Jaguar Land
No No No Yes Evoque EU
Rover

BMW- Mini No Yes No No All Mini models EU

Citroen No Yes Expected 2020 Expected 2020 DS5 EU

Toyota Yes No No No Prius NA

Source: Frost & Sullivan

NF59-18 26
Supplier Market Share
Continental is the undisputed leader in the HUD market with its major share coming from European luxury
OEMs such as BMW, Mercedes-Benz, and Audi to lead in HUD penetration.

Augmented Reality in Cars: Supplier Market share Snapshot, NA and EU, 2014

Comments

• Continental leads the Others

windshield HUD in 20%
luxury segment cars.
Continental
AR-HUD is likely to 45–50%
be in production by
2017.
• Denso is expected to
release combiner
HUD by 2017 and
AR-HUD by 2020. Nippon Seiki
25–30%
• JCI leads the
combiner HUD
market with the PSA
group. Major
penetration will Denso
happen by 2017. 10–15%
Note: Others include Bosch, Panasonic, Delphi, Harman, Visteon
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 27
Cost Comparison
Combiner HUD is preferred over conventional HUD in terms of cost and space but lacks the brightness and
image quality that is offered by a traditional windshield HUD.

Augmented Reality in Cars: Cost Comparison Snapshot, NA and EU, 2014–2021

$1,200–1,500
AR- HUD
$700–800 • Treated windshield
Windshield HUD • Picture generating
unit
$400–500 • Treated windshield • Fold mirror
Combiner HUD • Picture generating • Rotatable mirror
unit • Glare trap
• Polycarbonate plastic • Fold mirror • LED backlit
combiner • Rotatable mirror • Heat sink
• Picture generating • Glare trap • AR engine
unit • LED backlit • Camera, radar,
• Electric motor • Heat sink sensors
• Optical lenses • Stepper motor • Installation cost
• Operation cost
Car Segment: D, E&F
DLP-PGU:
Car Segment: C&D • DMD device
• Projection screen
Car Segment: A&B • Optics
• Illumination source
Key: PGU = Picture Generating Unit; DMMD = Digital Micro Mirror Display Source: Frost & Sullivan

NF59-18 28
Value Chain Analysis
Third-party software developers and suppliers will soon become a major part of the value chain.

Augmented Reality in Cars: Value Chain Analysis, NA and EU, 2014–2021

Tier II Suppliers
(E.g., Luxoft, Texas Instruments, Future Participants Likely to
Microvision) Join the Ecosystem

Tier I Suppliers Non-automotive Participants

Current Ecosystem

(E.g., Continental, Denso, Harman, Visteon) (E.g., Google glasses, Apple watches)

Vehicle Manufacturers Phone App Providers

(E.g., Mercedes, BMW, Audi, VW, Ford)
(E.g., HUDWAY)

Consumers
New Automotive Suppliers
(E.g., E-Lead’s optical film)

Aftermarket Distributors
(E.g., Navdy)

Note:
• The advent of AR goggles from Mini will prompt participants such as Google and Apple to launch their
wearables like Google glasses and Apple watches.
• E-Lead uses a special optical film on the windshield and projects information on it. This eliminates the
need for a special windshield used in normal HUD and is a low cost solution.
Source: Frost & Sullivan

NF59-18 29
 Total HUD Market Penetration

NF59-18 30
Overall Penetration
The HUD market is going to open up in 2015 with leading Tier I suppliers like Continental looking at both
combiner HUDs and windshield HUDs, which might feature AR.

Augmented Reality in Cars: Overall Penetration of HUD, NA and EU, 2014–2021

CAGR = 41.9% 9.3 Million Units

AR-HUD
19%

AR-HUD to Commercialize only by 2018

C-HUD
0.8 Million
Units Head Up Display 57%
7.0
Number of Vehicles
with HUD (Million)

C-HUD 6.0
34%
5.0
4.0
3.0 5.9
W-HUD
66% 2.0 W-HUD
3.4
1.0 24%
0.0
North America Europe
2014
2021 2021
Key: W-HUD: Windshield HUD: C-HUD: Combiner HUD
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 31
Overall Penetration (continued)
With increasing safety regulations and mandates in North America, native automakers are turning towards
implementing HUDs.

Augmented Reality in Cars: Penetration of HUD, NA, 2014–2021

3.4 Million Units

AR-HUD
22%

1,200,000.0
Number of Vehicles with HUD

1,000,000.0
C-HUD
0.3 Million
800,000.0
Units 50%
600,000.0 C-HUD
C-HUD
37% 400,000.0
C-HUD W-HUD
200,000.0 AR-HUD
W-HUD W-HUD
0.0
63% 2016 2018 W-HUD
W-HUD 95,551 614,690 28%
C-HUD 394,763.00 954,596.00
AR-HUD 0 319,669.00
2014
2021
Key: W-HUD: Windshield HUD: C-HUD: Combiner HUD
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 32
Overall Penetration (continued)
Europe experiences a high adoption rate of safety-related functionalities. HUDs will notice high penetration in
the European region.

Augmented Reality in Cars: Penetration of HUD, EU, 2014–2021

5.9 Million Units

AR-HUD
18%

2,500,000.0
Number of Vehicles with HUD

0.5 Million 2,000,000.0 C-HUD

Units
1,500,000.0 61.0%
C-HUD
C-HUD 1,000,000.0
32%
500,000.0 C-HUD
W-HUD
W-HUD AR-HUD
W-HUD 0.0
68.% 2016 2018 W-HUD
W-HUD 630,782 932,327 21%
C-HUD 882,743.00 2,003,160.00
AR-HUD 0 480,604.00
2014
2021
Key: W-HUD: Windshield HUD: C-HUD: Combiner HUD
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 33
 HUD Technologies and Penetration

NF59-18 34
Windshield HUD
Head-up displays can be easily adjusted to the needs and preferences of drivers. This allows customization of
virtual image positioning on the windshield.

Augmented Reality in Cars: Windshield HUD, NA and EU, 2014–2021

Virtual Image at
Windshield Bumper Distance
Optical Component Why High Cost?
Glare Trap
• Integration of the components depends on
Eye Box
size and shape of vehicle and its windshield.
• A specially treated windshield is needed.
Fold • Manufacturing of optical lenses with high
Mirror
Rotatable precision leads to high cost.
Driver Mirror
• The optical lenses and their paths must be
Picture Generation Unit designed uniquely for each car to suit the
shape of the windshield (high development
cost).
Projection Distance ~2.5m in front of car
• As more vehicle platforms are being
Eye Box Dimension 130*40mm introduced, competition between OEMs will
Display Technology TFT-LCD intensify and prices of HUD will reduce. The
Pixels Used 800*480 adoption of this technology will trickle down
to medium segment cars by 2017.
Brightness Level 1700cd/w
Heat Sink Required
Manufacturing
5 micrometers
Tolerance
Source: Frost & Sullivan

NF59-18 35
Windshield HUD Penetration in North America
Ford is looking to roll out augmented navigation systems with both high-end and mid-range models. HUD
systems are expected to be featured in mid-range car models near 2016.

Augmented Reality in Cars: Windshield HUD Penetration, NA, 2014–2021

Comments

• Cost of 1,200,000 7.0

electronics in
6.0
HUD are likely to 1,000,000
come down. 5.0

Penetration (%)
• OEMs are looking 800,000
Units

to integrate HUD 4.0

600,000
in medium
3.0
segment cars
400,000
(C&D segment). 2.0
• Strong rules exist 200,000 1.0
to reduce driver
distraction in 0 0.0
2014 2015 2016 2017 2018 2019 2020 2021
North America. Windshield HUD 180,297 248,867 329,487 471,586 614,690 716,633 841,328 961,734
• Windshield HUD Penetration 1.1 1.5 2.1 3.0 3.9 4.5 5.2 5.9
is a brand Year
differentiator for
OEMs.
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 36
Windshield HUD Penetration in European Union
Europe is the hub of premium automakers and currently leads in adoption of HUDs. This trend is expected to
follow through the forecast period.

Augmented Reality in Cars: Windshield HUD Penetration, EU, 2014–2021

Comments

Cars with Windshield HUD

• Rising customer
1,400,000 7.0
awareness about
the technology 1,200,000 6.0
and willingness
1,000,000 5.0

Penetration (%)
to adopt and
Units

accept new a 800,000 4.0

technology that
600,000 3.0
can enhance the
driving 400,000 2.0
experience is on
200,000 1.0
the rise.
• Medium segment 0
2014 2015 2016 2017 2018 2019 2020 2021
0.0
OEMs such as Windshield HUD 298,668 426,768 630,782 741,304 932,372 1,035,998 1,181,285 1,251,660
Penetration 1.9 3.0 3.6 4.0 4.9 5.2 5.8 6.0
Nissan, Mazda,
Year
and Renault are
looking to offer
HUD by 2017.
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 37
Combiner HUD
Combiner HUD is cost efficient and requires less space for installation which is suitable for compact vehicle
models. This helps to make this new technology accessible to a wider range of drivers.

Augmented Reality in Cars: Combiner HUD, NA and EU, 2014–2021

Virtual Image at
Windshield Bumper Distance
Why Low Cost?
• The combiner screen is made of a
Combiner
polycarbonate plastic with special coating.
• Specially treated windshields are not
required.
Fold • Number is optical lenses is reduced.
Mirror
Driver • Combiner HUDs do not need a huge
Picture Generation Unit installation space unlike conventional
HUDs.
Projection Distance ~1.5-2m in front of car
• The same system can be used in different
Eye Box Dimension 130*40mm
cars (reduced development cost).
Display Technology TFT-LCD
• Pop-up HUD is suitable for small cars
Pixels Used 480*240 where space is a constraint as well as in
Brightness Level ~10000cd/w emerging markets, but combiners are not
Special Note Motor used for opening and placed in the driver’s direct FOV.
closing of combiner • Combiner HUD lacks the brightness and
Heat Sink Not required contrast that a conventional HUD can offer.
Suppliers Continental, Bosch, Johnson
Control
Source: Frost & Sullivan

NF59-18 38
Combiner HUD Penetration in North America
A quality characteristic of this new combiner HUD is that the displayed information remains sharp and distortion-
free and is easily integrated into the dash.

Augmented Reality in Cars: Combiner HUD Penetration, NA, 2014–2021

Comments

Cars with Combiner HUD

• Aftermarket HUD
supplier Navdy 1,800,000 12.0

entered product 1,600,000

10.0
at a low cost 1,400,000
about $300.

Penetration (%)
1,200,000 8.0
Units

• Mazda already 1,000,000

offers this 6.0
800,000
technology and
leads the 600,000 4.0
combiner HUD 400,000
market. 2.0
200,000
• A, B, and C 0 0.0
segment cars 2014 2015 2016 2017 2018 2019 2020 2021
Combiner HUD 118,362 253,778 394,763 515,454 954,596 1,372,343 1,494,975 1,699,771
across OEMs are
Penetration 0.7 1.6 2.5 3.3 6.0 8.6 9.2 10.4
likely to introduce
Year
combiner HUDs
by 2017.

Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 39
Combiner HUD Penetration in European Union
Low cost and compact size are key factors that will propel the penetration of combiner HUDs in Europe.

Augmented Reality in Cars: Combiner HUD, Penetration, EU, 2014-2021

Combiner HUD unit is equipped with a full-color LCD with a resolution of 480 by 240 pixels.

Comments

• Medium segment cars

4,000,000 20.0
(e.g., Citroen, Mazda, Cars with Combiner HUD
Renault, Nissan, 3,500,000 18.0
Opel) are looking to 16.0
3,000,000
introduce combiner 14.0

Penetration (%)
HUDs by 2017. 2,500,000
Units

12.0
• Peugeot, Citroen, and 2,000,000 10.0
Mini have combiner
1,500,000 8.0
HUD as a standard/
option showing a 6.0
1,000,000
strong base in 4.0
Europe. 500,000 2.0
• Tier I suppliers such 0 0.0
2014 2015 2016 2017 2018 2019 2020 2021
as Continental, Bosch Combiner HUD 160,243 433,488 882,743 1,593,526 2,003,160 2,406,061 2,894,150 3,592,536
have begun mass Penetration 1.0 2.6 5.0 8.6 10.4 12.1 14.2 17.3
production focusing Year
on medium and small
car segment
penetration. Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 40
Augmented Reality HUD
AR-HUD supports drivers with situational information, which appears in the real exterior view of the traffic
situation.

Augmented Reality in Cars: AR-HUD, NA and EU, 2014–2021

AR-Image Challenges of AR-HUD:
Windshield Virtual Image
Optical Component • High cost of installation and parts
Glare Trap
• Space constraint and thus limited to
Eye Box premium segment cars

Advantages of AR-HUD:
Fold
Mirror
• Reduces driver distraction
Driver
Rotatable
Mirror • Driver focuses on the road
• Safe and comfortable driving
Picture Generation Unit

Key Parameters Near View Augmented View

Projection Distance ~2.5m in front of car ~7-10m
Eye Box Dimension 130*60mm 130*60mm
Display Technology TFT-LED DLP with laser or LED
Pixels Used 800*480 Not Available
Brightness Level 10,000cd/w 10000cd/w
Image Size 5°*2° 10°*4.8°
Source: Frost & Sullivan

NF59-18 41
Augmented Reality HUD Penetration
AR-HUDs are still in the development stage and are expected to commercialize only by late 2018.

Augmented Reality in Cars: AR-HUD, Penetration, NA and EU 2014–2021

1,600,000 Cars with AR-HUD - NA 10.0 Comments:

1,400,000
8.0
• The integration and size
1,200,000
of optic box restrict

Penetration (%)
Units

1,000,000 6.0 penetration to premium

800,000
4.0 vehicles.
600,000
400,000 • The penetration will
2.0
200,000 happen only in the
0
2018 2019 2020 2021 2022 2023 2024 2025
0.0 luxury segment vehicles
AR-HUD 317,669 400,801 485,381 734,771 808,670 971,891 1,071,634 1,366,249 in North America and
Penetration 2.0 2.5 3.0 4.5 5.0 6.0 6.5 8.0 Europe.
Year
• Continental, Denso, and
Nippon Seiki are the key
3,000,000 14.0 suppliers to support this
Cars with AR-HUD - EU
2,500,000 12.0 technology.
•

Penetration (%)
2,000,000
10.0 ADASs such as ACC,
8.0 LDW, and BSD will be
Units

1,500,000
6.0 integrated with AR-HUD.
1,000,000
4.0
500,000
• In supporting
2.0
autonomous vehicles,
0 0.0
2018 2019 2020 2021 2022 2023 2024 2025 AR-HUD is expected to
AR-HUD 480,604 596,544 712,844 1,041,314 1,276,096 1,360,649 1,791,655 2,760,053
Penetration 2.5 3.0 3.5 5.0 5.9 6.3 8.0 12.0
have major penetration
Year by 2020.
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

NF59-18 42
 HUD Case Studies

NF59-18 43
Navdy
Navdy does not just display navigation and basic information on HUD, but integrates smartphones into the
system, which is one of the unique features supporting its successes.

Augmented Reality in Cars: Navdy, NA and EU, 2014–2021

Navdy Product
• Displays
1 Key Advantage :Low cost, portable, Wi-Fi, Small navigation and
screen size call notification at
the same time in
Learning Curve: Low in that it uses gestures and voice
2 a split screen
control
• Filters unwanted
Key Elements: Pico projector, IR camera, microphone, apps
3
Image Source: Navdy polycarbonate screen

Split Screen 4 Applications: Contacts, navigation, music, calls, radio

• Used as both
input and output
system
5 Development: Software and hardware built internally • Portable and
powered by
Product Portfolio: Transparent combiner HUD at
plugging into
6 OBD port in any
$300
Image Source: Navdy
car

The product is mounted onto a flexible footer that fits on any car dashboard. Navdy works with iOS 7 and
Android smartphones, and can transfer easily to another car or another smartphone. Once a Navdy has
been paired over Bluetooth for the first time, it can share data with a phone over Wi-Fi.
Key: OBD = on-board diagnostics Source: Frost & Sullivan

NF59-18 44
Range Rover
The first generation of holographic HUD does not exploit the full potential of the technology. Its real potential is
in delivering 3D AR.

Augmented Reality in Cars: Range Rover–Laser HUD, EU, 2014–2021

1 Key Advantage: Low power, increased brightness ,

very compact in size, distortion-free image Key Parameters Comments
Scanned Laser Technology

Projection Distance ~2.1m in front of car

2 Display Technology: Holographic laser display
Eye Box Dimension 130*70mm
Display Technology Holographic laser
Key Elements: Optical lenses, laser lights, spatial light
3 display
modulator
Pixels Used 480*240
Information Projected: Vehicle speed, navigation, Brightness Level ~10000cd/w
4
traffic signs, gear position
Colors Used Red, blue, green
Development: Software and hardware built with
5 Back Light Technology Not required
supplier
OEM Range Rover (Evoque)
Product Portfolio: HUD using laser projection by
6
supporting holographic techniques

The HUD shows information such as speed, gear position, turn-by-turn navigation, cruise control speed,
traffic sign recognition, and ACC status, along with warning messages if any. It is fully configurable and
also customizable.
Source: Frost & Sullivan

NF59-18 45
Toyota
Toyota is currently working on a 3D-HUD system that is cost effective, robust, and small enough to be mounted
inside the dash of the vehicle that helps in easy integration.

Augmented Reality in Cars: Toyota, NA, 2014–2021

• Works with
1 Key Advantage :Displays real-time traffic alerts, normal
ordinary windshield, wide-view angle, high brightness windshield
Toyota 3D Head-up Display

• No special filters
2 Market Launch Date: Not available or glasses
needed, perfectly
integrating with
3 Key Elements: Phased array radar, Cameras, LIDAR, sensors the view

4
Applications: Navigation assistance, traffic alerts, ADAS, • Helps locate
vehicle speed parking spots
with green light
5 Development: Software and hardware built internally popping up
where available
parking spaces
6 Product Portfolio: 3D-HUD can be found

An interesting feature is real-time warning of traffic hazards. When a car approaches from the left, driver
will see a bright red ghost image in the 3-D HUD. The same happens when a bicyclist creeps into the
driver’s blind spot, so that the driver does not have to look into the mirrors.
Source: Frost & Sullivan

NF59-18 46
BMW
BMW-Mini and Qualcomm have created a prototype model of AR googles that show relevant information in the
driver’s direct FOV.

Augmented Reality in Cars: BMW Mini, Augmented Vision, EU, 2014–2021

• Virtual see-
1 Key Advantage :Increased safety and comfort through parts of
the vehicle such
as A-pillars and
2 Market Launch Date: Not available – is a prototype model doors help to see
objects outside of
Image Source: BMW-Mini Notable Elements: X-Ray view, messaging, augmented the car.
3
parking

4
Applications: Navigation assistance, traffic alerts, ADAS, • Icon shown in the
vehicle speed eyewear when a
message is
5 Development: Collaboration with Qualcomm companies received
• The message can
then be read out
6 Product Portfolio: MINI Augmented Vision Goggles by the car while
driving.
Image Source: BMW-Mini

Goggles can be used both inside and outside the car. The augmented parking feature projects images
obtained from a camera on the far side mirror to the glasses to help drivers park close to the curb, offering
a pleasant parking experience.
Source: Frost & Sullivan

NF59-18 47
 HUD Future Outlook

NF59-18 48
Future Outlook
The next generation of HUD will offer larger and brighter images with reduced power consumption and smaller
package sizes. They will also be able to support 3D augmented reality.

Augmented Reality in Cars: Future Outlook, NA and EU, 2014–2021

Projection Technology Information Displayed HUD Solutions

 Technologies like  Vital information will  Normal windshield

Future Outlook of HUD Technologies

Digital Light show like engine HUD will focus on

Processing (DLP) cooling, traffic jams,
and laser projection and ADAS information.
will gain traction by  Open parking spots will
2020. be highlighted, as will
destination.
medium segment cars
with cost reduction.
 AR-HUD will be
restricted to premium
cars.

HUD+ Gesture Controls Display Size Augmented Wearables

 DLP HUD with touch  Display area of the HUD
and gesture control in the future will have
technology will wider screen and
enhance the driver brightness level greater
experience (e.g., than 15,000cd/m.
Johnson Controls)  Virtual images will be
large.
 Information will be
projected via wearables
such as goggles (e.g.,
MINI Vision glasses).
 Google may enter the
wearables space with its
Google Glasses.

Source: Frost & Sullivan

NF59-18 49
 Key Conclusions

NF59-18 50
Conclusions
HUD is expected to get significant push by 2020/21 owing largely to affordable active safety and level 2/3
vehicle automation.

Augmented Reality in Cars: Conclusions, Global, 2014–2021

Display Technology OEM Interest Supplier Concentration Product Focus

• Currently, LCD-TFT is • Hyundai, Ford, and • Continental is the • Combiner HUD is

the display preferred Honda are volumes leader in the HUD leading the medium
by premium OEMs OEMs and are market with its segment cars
with LED backlighting expected to push products in all 3 across NA and EU
being the key for HUD in their medium segments. with Mazda in NA
German OEMs. segment cars. • Bosch is ready with and PSA group in
• Jaguar Land Rover • Audi and BMW are its combiner HUD for EU.
has introduced a working on contact- BMW in 2015/16. • Information like
scanned laser analogue displays • Luxoft and Harman speed and
projection HUD. which are expected to Denso are other navigation are
enter the market by suppliers who are displayed with
2018. pushing forward in smaller FOV.
the HUD space.
Source: Frost & Sullivan

NF59-18 51
The Last Word—3 Big Predictions

Wider Field of View:

1 The industry is moving towards the widest FOV yet, up to 12° to enable the display of navigation
indicators and other ADAS information in the driver’s line of sight.

Display Technologies:
In the verge of supporting AR-HUD and widest FOV, advanced display technologies such as DLP
2 and scanned laser are expected to replace the conventional TFT display in medium segment cars
by 2020.

Combiner HUD Standard:

Combiner HUDs are expected to soon become a standard fitment in medium segment cars across
3 all OEMs, considering the various advantages over other HUD types. Certain OEMs are working
towards this goal.

Source: Frost & Sullivan

NF59-18 52
Legal Disclaimer

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No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

NF59-18 53
 Appendix

NF59-18 54
Table of Abbreviations and Acronyms Used

ADAS Advance Driver Assistance Systems LED Light Emitting Diode

AR Augmented Reality OBD On-board Diagnostics

ACC Automatic Cruise Control OEM Original Equipment Manufacturer

BSD Blind Spot Detection OLED Organic Light Emitting Diode

CCFL Cold Cathode Fluorescent Lamps PGU Picture Generating Unit

DMMD Digital Micro Mirror Device TFT Thin Film Transistor

DLP Digital Light Processing VID Virtual Image Distance

FOV Field of View VFT Vacuum Florescent Display

HFOV Horizontal Field of Vision VFOV Vertical Field of Vision

HUD Head-up Display

ICD Instrument Cluster Display

LCD Liquid Crystal Display

LDW Lane Departure Warning

Source: Frost & Sullivan

NF59-18 55