Allied Market Research (AMR) has released a new report that suggests that the market for in-car gesture recognition systems will quadruple over the course of the next decade. The report predicts that the market will jump from $990.4 million in 2020 to $4.3 billion in 2030, which represents a CAGR of 18.4 percent for the forecast period.
The firm attributed that growth to recent and anticipated advancements in gesture recognition technology, which will make smart features more readily available in consumer vehicles. Gesture recognition can inform the development of better user interfaces and safety systems, and deliver a better on-road experience for drivers. However, the technology could create more troubleshooting headaches, which could slow growth rates in the immediate future.
In the meantime, AMR noted that the automotive market at large has struggled during the COVID-19 pandemic. People were driving less because they did not have anywhere to go during lockdowns. That lowered the demand for new vehicles, and prompted automakers to cut their development budgets and reduce staff in an effort to weather the downturn.
AMR went on to identify the touchless systems segment as the largest by component, and indicated that it will hold that position in 2030. The segment currently accounts for more than 50 percent of the market, and will display the highest CAGR (19.9 percent) leading up to 2030.
The demand for facial authentication technology, on the other hand, will grow at a faster rate than the demand for hand, fingerprint, and leg authentication tech, even though the latter segments made up a bigger portion of the market (roughly one third) in 2020. Europe is and will continue to be the largest market by region, with North America sitting in second place.
AMR listed Cognitec, NXP, Qualcomm, Samsung, and Synaptics as some of the biggest players in the automotive gesture recognition space. Valuates has predicted that the overall gesture recognition market will reach $34.3 billion by 2025, while MarketsandMarkets expects it to hit $32.3 billion in the same time frame. The latter indicated that smart vehicles will drive much of the interest in gesture recognition technology.