The automotive virtual exterior mirror market is witnessing a significant transformation as advanced technologies and innovative solutions replace traditional side mirrors. The automotive virtual exterior mirror market is undergoing a significant transformation and is expected to grow at a CAGR of 16.8% during the forecast period of 2024 to 2032, driven by safety regulations, the need for improved fuel efficiency, and technological advancements. While initial costs and integration challenges remain as restraints, the market is expected to witness continued growth, especially in regions with stringent safety regulations and a focus on technological innovation. The competitive landscape is marked by key players who are committed to delivering high-quality solutions and expanding their market presence.

Enhanced Safety and Visibility

Driver Assistance Systems: One of the major drivers shaping the automotive virtual exterior mirror market is the increasing adoption of advanced driver assistance systems (ADAS). These systems utilize cameras and sensors to provide real-time information to drivers, enhancing visibility and safety. In 2023, the integration of virtual exterior mirrors with ADAS systems significantly improved driver awareness and reduced blind spots. This trend is expected to continue into the forecast period from 2024 to 2032, with an even higher demand for virtual exterior mirrors as they become an integral part of safety systems.

Regulatory Mandates: Stringent safety regulations in various regions are also contributing to the growth of virtual exterior mirrors. In 2023, several countries, including Japan and parts of Europe, imposed regulations promoting the use of camera-based systems. This trend is expected to gain momentum, as more regions are likely to introduce similar mandates during the forecast period.

Reduced Aerodynamic Drag

Improved Fuel Efficiency: The second key driver is the emphasis on reducing aerodynamic drag to enhance fuel efficiency. In 2023, automakers sought innovative ways to improve their vehicles' aerodynamics, and virtual exterior mirrors proved effective in this regard. By replacing traditional mirrors with sleek camera-based systems, automakers achieved better fuel economy. This trend is anticipated to continue into the forecast period, with manufacturers across the globe expected to focus on minimizing drag and optimizing vehicle performance.

Technological Advancements

Advancements in Camera Technology: Technological advancements in camera technology are driving the adoption of virtual exterior mirrors. In 2023, cameras became more sophisticated, offering higher resolution and improved performance in various weather conditions. This led to an increased demand for virtual mirrors, as they provide a clearer and more reliable view compared to traditional mirrors. The forecast period from 2024 to 2032 is expected to witness further advancements in camera technology, making virtual exterior mirrors even more appealing to both automakers and consumers.

Cost and Integration Challenges

Initial Cost Barrier: A significant restraint affecting the automotive virtual exterior mirror market is the initial cost associated with installing and integrating these systems. In 2023, the cost of camera-based systems, along with the required display technology, was relatively high, limiting their adoption in some vehicle segments. This restraint is expected to persist during the forecast period, although ongoing research and development efforts are aimed at reducing the cost of virtual exterior mirror solutions.

Component (Hardware, Software, Services): Hardware Segment Dominates the Market

In 2023, the hardware segment recorded the highest revenue in the market as it encompassed the physical components, such as cameras and displays. However, during the forecast period from 2024 to 2032, the services segment is expected to exhibit the highest CAGR. This growth is attributed to the increasing demand for maintenance, software updates, and cloud-based services related to virtual exterior mirrors. The software segment, which includes algorithms and image processing, is also expected to experience steady growth, reflecting the importance of software in optimizing mirror performance.

Technology (3D Body Scanning, Photo Accurate VFR, 3D Augmented Reality and Virtual Reality, Others): 3D Body Scanning Technology Dominates the Market

 In 2023, 3D body scanning technology garnered the highest revenue due to its precision and ability to provide an accurate representation of the vehicle's surroundings. However, during the forecast period from 2024 to 2032, 3D augmented reality and virtual reality technology are expected to exhibit the highest CAGR. This technology enhances the driver's visual experience by overlaying critical information on the mirror's display. Photo-accurate VFR and other technologies will also continue to grow but at a slower pace.

North America Remains the Global Leader

Geographically, the automotive virtual exterior mirror market is witnessing significant trends. North America and parts of Europe contributed high revenues in 2023, primarily due to stringent safety regulations and the adoption of advanced technologies. These regions are also expected to continue experiencing the highest CAGR during the forecast period, driven by increasing safety awareness and technological advancements. Asia-Pacific, especially China, is a region with significant revenue percentages in 2023, and it is expected to maintain this position during the forecast period, supported by the growing automotive industry and consumer demand for advanced safety features.

Innovation Remains the Key to Market Share

In the competitive landscape of the automotive virtual exterior mirror market, key players such as Gentex, Magna International, Bosch, Continental, Panasonic Corporation, Ficosa International, Hyundai Mobis, Harman Inernational, Nissan Motor Co., Ltd., Samsung Electro-Mechanics, Honda Motor Co., Ltd, BMW AG, Leopold Kostal GmbH & Co. KG, Mitsubishi Electric Corporation, YFAI (Yanfeng Automotive Interiors), Samvardhana Motherson Reflectec (SMR), and Valeo S.A. have been at the forefront of innovation and product development. These companies have consistently invested in research and development to enhance virtual mirror technology and have formed strategic partnerships with automotive manufacturers to implement these solutions effectively. In 2023, these industry leaders secured substantial revenue shares, and they are expected to maintain their positions during the forecast period from 2024 to 2032. Their strategies encompass producing high-quality hardware and software components, aligning with the technological trends, and expanding their global presence. Moreover, they are actively involved in addressing cost and integration challenges, making virtual exterior mirrors more accessible to a broader range of vehicles.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Virtual Exterior Mirror market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Virtual Exterior Mirror market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Virtual Exterior Mirror market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Virtual Exterior Mirror market?
• Which is the largest regional market for Automotive Virtual Exterior Mirror market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Virtual Exterior Mirror market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Virtual Exterior Mirror market worldwide?