Virtual Visor Market Size, Share And Segmentation By Type (LCD, LED) By Application (Commercial Vehicle, Passenger vehicle) By Regions And Global Market Forecast 2023-2032

Virtual Visor Market Report & Overview:

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The Virtual Visor Market Size was valued at USD 0.214 billion in 2023 and is estimated to reach USD 1.57 billion by 2032 and grow at a CAGR of 24.79% over the forecast period 2024-2032.

The virtual visor industry is quickly expanding due to progress in display and AI technologies. LCDs and OLEDs that are transparent, allowing for dynamic opacity adjustments, provide improved glare reduction while maintaining visibility. AI algorithms assess current data to enhance visor transparency by adjusting to sun position and driver eye movement, leading to notable enhancements in driving safety and comfort. The increased use of advanced driver assistance systems (ADAS) is speeding up the inclusion of virtual visors. By 2023, the number of light vehicles with global L2+ ADAS technology hit 630,000 units, representing a 3.1% market penetration, with China taking the lead at 5.7%. A significant portion of the market was held by Germany and the US. Global L2+ equipped vehicle numbers are predicted to reach 4.5 million in 2024, doubling from 2 million in 2023, with a 5.5% penetration rate, largely driven by China.

The growing automotive industry, especially its high-end and luxury categories, plays a vital role in driving the virtual visor market. More and more consumers in this industry are seeking out new features that improve both the safety and comfort of driving. The rise in global vehicle production to 85 million units by 2023, driven significantly by luxury and premium segments, highlights this pattern. Buyers who purchase luxury cars place a strong emphasis on advanced technologies. Virtual visors align perfectly with their preferences, utilizing AI and advanced displays to intelligently manage glare. The increasing US market for new vehicles, projected to hit 1.3 million units in May 2024 with a 15.6% year-over-year rise, reinforces the optimistic forecast for the car industry. With consumers putting a record USD 46.9 billion into new vehicles in May, the way is paved for a rise in the use of advanced features such as virtual Visors are being affected by the growing desire for high-end and luxury cars.

MARKET DYNAMICS

Drivers

• Road safety is a driving factor in the development of virtual visors.

The growing global emphasis on road safety is a strong motivation for the virtual visor sector. Visibility-related problems, a leading factor in accidents, are receiving significant attention due to the World Health Organization's report of around 1.19 million deaths from road accidents each year. Conventional sun visors are frequently insufficient, leaving drivers exposed to glare. Advanced technology in virtual visors offers a compelling solution. These visors enhance visibility and reduce accident risks by adjusting opacity according to sunlight conditions. The urgency of such innovations is highlighted by the United Nations' ambitious goal to cut road fatalities in half by 2030.Even though fatal crash rates in the U.S. have decreased from 30.8 to 14.3 per 100,000 people since 1937, the country still sees around 43,000 fatal crashes annually. The high percentage of young drivers affected, as motor vehicle accidents are the top cause of death for ages 1 to 54, emphasizes the crucial necessity of advanced safety technologies such as virtual visors. With governments and regulatory bodies globally paying more attention to road safety, the need for technologies like virtual visors to reduce risks is expected to grow significantly.

• Increased demand for virtual visors is being fueled by a focus on consumer preferences.

Consumers' strong desire for high-tech, fully equipped vehicles is causing a major change in the automotive industry. Virtual visors, which provide improved comfort, safety, and driving enjoyment, are an ideal match for this trend. The U.S., known as a major player in the automotive industry with 14.5 million light vehicle sales in 2020, exemplifies this purchasing trend. An extensive automotive ecosystem that includes manufacturing, research and development, and international sales supports the industry. The significant investments of USD 143.3 billion made by foreign car manufacturers in the U.S. industry highlight its importance. The car supplier industry's creation of 4.8 million jobs highlights the sector's economic influence. With close to 70 R&D facilities located in the United States, the automotive industry is ready for technological advancements as innovation becomes a priority. With its rich soil, extensive customer base, and favorable government regulations, the U.S. is a top market for innovative technologies such as virtual visors, meeting the needs of today's drivers who seek a more advanced driving experience.

Restraints

• Pricing and technological difficulties are delaying the widespread use of virtual visors.

Although virtual visors show great potential, they face major obstacles that prevent their widespread use. The complex nature of the technology, which relies on advanced LCDs and AI, increases production costs, making it a high-end feature that is often out of reach for the general public. Incorporating these systems into current vehicles presents technical challenges, creating obstacles for smaller manufacturers. Furthermore, consumer worries are heightened by potential technical issues and the accompanying costs of maintenance. These problems are worsened by the wider EV environment. Even though new EV prices have decreased by 10%, repair costs for EVs are still 29% higher than those for traditional gasoline cars, and repairs also take almost twice as long. The reason for this is mainly the intricate high-voltage battery systems and specific maintenance needs. As a result, insurance companies are more frequently declaring electric vehicles as total losses, even following small accidents, with total loss claims increasing by 30% to 9.93%. This, along with the sharp drop in prices of secondhand EVs (decreasing by 32%), is dissuading potential buyers. EV sales have increased by 20% in 2024, but are not meeting expectations because consumers remain worried about costs, range, and repair expenses. The virtual visor market is affected by the cautious consumer sentiment towards advanced vehicle technologies due to broader EV market challenges.

• Challenges in technology and financial limitations hinder the acceptance of virtual visors.

Despite their potential to solve glare problems, virtual visors are hindered by technological constraints. Extensive expenses related to incorporating advanced LCDs and AI systems also impede widespread adoption. This, along with the difficulty of incorporating these systems into current vehicles, creates obstacles for both companies and customers. The larger electric vehicle (EV) industry reflects similar cost challenges. Despite the fact that energy storage costs have decreased since 2010, it is still a challenge to achieve a sufficient driving range. Having to fit both electric and conventional powertrains in plug-in hybrids creates more challenges with packaging and leads to higher expenses. In order to reach substantial EV market adoption (10% by 2025, 35% by 2040), prices need to be comparable to traditional internal combustion engine cars, enabling up to three years of savings on fuel costs. Although simulations show a possibility of lowering electric powertrain costs to $6/kW, the main issue is consumer concern over payback time. Moving towards a long-term cost viewpoint, as seen in mobility-as-a-service (MaaS) fleet applications, could enhance the EV business case and, consequently, technologies like virtual visors that rely on comparable cost cuts.

Segment Analysis

By Type

Based on Type, LED Type dominated the virtual Visor market with 61% of share in 2023. LED technology has transformed the virtual visor industry with its outstanding performance features. Their high level of brightness and clarity greatly improve visibility by effectively reducing glare, especially in difficult lighting situations. LED virtual visors outperform traditional LCDs by effectively managing strong sunlight and quick lighting changes, with a focus on ensuring driver safety and comfort. Additionally, the built-in energy efficiency of LED technology is a significant benefit. LED virtual visors use much less power compared to LCD visors, aiding in managing the energy of vehicles. As an example, the LEDMAN DS Series, which utilizes advanced COB technology, cuts energy usage by around 50% when compared to similar products. With their long lifespan and strong durability, LEDs are a great option for the automotive sector, where dependability is crucial. This mix of effectiveness, energy savings, and durability cements LED technology as the top choice for virtual visors.

By Application

In 2023, Passenger Vehicle was the leading segment in the virtual visor market, accounting for 63% of the market share. Virtual visors in cars are created to decrease glare from the sun, enhancing driver comfort and safety. Being able to electronically control the visor's opacity and position reduces eye strain and improves visibility in different lighting situations. Numerous cars come with virtual visors that have extra functions like adjusting glare in real time and personalized settings. These enhanced features are in line with what consumers expect from today's comfort-focused vehicles.

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Regional Analysis

North America dominated the virtual visor market with 40% of share in 2023. Due to its leading technology, high demand for premium features by consumers, and strong market infrastructure. The automotive sector in the region, led by key companies such as General Motors, Ford, and Tesla, encourages innovation and quick uptake of cutting-edge technologies such as virtual visors. Major investments in research and development drive the creation of advanced features, strengthening North America's dominance in the market. Although facing obstacles, the area continues to be a strong force in manufacturing, with a yearly revenue of more than USD 500 billion and a workforce of 1.7 million individuals. The alliance of Mexico and Canada within the T-MEC agreement establishes North America as a strong player in the worldwide automotive industry, ready to advance and expand further.

Europe is the fastest growing in virtual visor market with 21% of share in 2023. The European Union has enforced stringent safety regulations for vehicles, requiring advanced driver assistance systems (ADAS) and safety enhancements. Virtual visors, which improve visibility and comfort for drivers, comply perfectly with these regulations. As car manufacturers aim to meet and surpass these requirements, the need for virtual visors is also increasing. Europe has a robust automotive sector with a deep tradition of technological advancement. Germany and France lead in creating advanced vehicle technologies, like virtual visors. Europe's advanced features have made it a significant market for implementing this technological excellence.

Future Trends

Enhanced connectivity in Electric and Hybrid Vehicles

As electric vehicles like Volkswagen's ID.2, Fisker's PEAR, and GM's Chevrolet Equinox become more popular and cost-effective, the inclusion of advanced technologies like virtual visors is projected to increase. Adding virtual visors to these cars will improve driving experience, as they improve visibility and decrease glare, following the trend of adding high-end features at a lower cost.

Expansion of the Electric Car Industry

Expansion of the market is evident in the increasing sales percentages of EVs (23% in China, 14.2% in Europe, and 6.9% in the US for full EVs), indicating a growing consumer demand for advanced automotive technologies. With the market growing, the use of virtual visors in more vehicles is expected to rise due to the increased desire for advanced technology features.

Key players 

Some of the major players in the ROBERT BOSCH GMBH, ATLAS HOLDINGS, KÖBO GmbH & Co. KG,  IRVINE AUTOMOTIVE PRODUCTS, Kasai Kygo Co.ltd, Mursion, Sunvisors India Private Limited, VISOR-AR,  Weetect,Scope AR and other players.

RECENT DEVELOPMENTS

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