China’s Passenger Car HUD Market 2025: AR-HUD Expansion, OEM Strategies, and the Future of In-Vehicle Displays
The China Passenger Car HUD Industry Report, 2025, now available through ResearchAndMarkets.com, provides one of the most comprehensive examinations of the fast-developing head-up display (HUD) segment in China’s automotive industry. The report outlines the current market environment, installation volumes, evolving technology types, competitive dynamics across the supply chain, and the growing role of augmented reality head-up displays (AR-HUD).
By mapping developments from upstream component makers to downstream carmakers, the report highlights how HUD technology is no longer a niche feature but is increasingly standard in both premium and mass-market passenger vehicles. The study not only tracks installations and adoption rates but also compares HUD product strategies among manufacturers and forecasts where the technology is headed in the next decade.
HUD Installations: Rapid Growth and Shifting Product Mix
The Chinese passenger car HUD market has witnessed an extraordinary growth curve over the past two years. In 2024, installations reached 3.55 million units, representing a 63% year-on-year increase. That surge also lifted the overall installation rate to 15.5%, marking an expansion of 5.2 percentage points compared to 2023.
Momentum has continued in 2025. Between January and April, installations climbed to nearly 1.1 million units, a 27.6% increase over the same period last year. If this pace holds, HUD installations are expected to approach 5 million units by year’s end, signaling the technology’s transition from optional luxury to mainstream feature.
Decline of C-HUD, Rise of AR-HUD
The report emphasizes a clear shift in product mix. Traditional C-HUDs (combiner HUDs) are rapidly disappearing from the pre-installation market, displaced by advanced solutions. Meanwhile, AR-HUDs are surging in adoption.
- In 2024, AR-HUD’s share rose to 26%, up 15.4 percentage points from the prior year.
- Installations of AR-HUD exceeded 900,000 units in 2024, a massive 300.7% year-on-year growth.
- From January–April 2025, AR-HUD installations reached nearly 250,000 units. Annual totals are projected to exceed 1 million units this year.
This rapid transition underscores the industry’s commitment to immersive, augmented reality experiences that enhance driver safety, comfort, and engagement.
Market Segmentation: Price Bands, Brands, and AR-HUD Leadership
Price Band Distribution
AR-HUD adoption is particularly strong in vehicles priced between 150,000 and 200,000 yuan (approximately $21,000–$28,000), where the segment accounts for over 25% of installations. Within this bracket, several models—such as Deepal S07, Deepal L07, and Zeekr X—boast a 100% AR-HUD installation rate, making HUD an integral part of the user experience rather than an optional add-on.
Brand Performance
In early 2025, Deepal emerged as the market leader in AR-HUD adoption:
- 56,000 units installed between January and April.
- 22.8% market share in AR-HUD segment.
- Several Deepal models feature AR-HUD as standard equipment, reflecting a strategy to differentiate through immersive cockpit technology.
Other major players—such as NIO, XPeng, and BYD—are also driving rapid uptake, particularly as competition intensifies in the intelligent cockpit space.
Technology Innovations: Partnerships and Platforms
XPeng–Huawei Collaboration
In June 2025, XPeng and Huawei announced the launch of the ZhuiGuang Panoramic Head-Up Display, setting a new benchmark for AR-HUD systems.
Huawei contributed:
- Automotive-grade imaging modules.
- A self-developed AR composition engine with advanced algorithms.
XPeng delivered:
- Integration into the full-scenario AR-HUD application.
- Human-machine interface (HMI) design.
- Vehicle data integration for real-time rendering.
The collaboration significantly reduces misalignment between virtual overlays and real-world scenes, addressing issues like frame vibration, slope inconsistencies, and time delay. Huawei’s AR engine alone can correct more than 80% of image misfits, substantially improving user comfort and reliability.
Software-Led Approaches: Neusoft AR For Car
While many AR-HUD systems rely on tight hardware-software integration, some companies are decoupling these layers to improve flexibility. Neusoft’s AR For Car is a notable domestic example.
This cockpit-level AR software platform supports multiple display points beyond the HUD—such as instrument panels, center consoles, and digital mirrors—creating a unified AR ecosystem. Its key tools include:
- AR Studio Designer Platform – Enables visual scene editing, rapid AR application generation, and real-time previews.
- AR SDK Developer Platform – Supports hardware-software separation, allowing cross-platform deployment and faster iteration.
- AR Real-Scene Simulation Platform – Shortens automotive development cycles by testing AR scenarios in real-time.
Such platforms empower OEMs to maintain consistent branding while enabling OTA (over-the-air) upgrades, a critical requirement in the software-defined vehicle era.
P-HUD: The Next Frontier
Beyond AR-HUD, another emerging technology is P-HUD (Panoramic HUD).
- June 2025 marked the launch of the Xiaomi YU7, China’s first mass-produced passenger vehicle equipped with P-HUD.
- The YU7’s Skyline Screen was co-developed by TCL CSOT (providing three 11.98-inch Mini LED panels) and ADAYO (supplying P-HUD imaging tech).
Globally, BMW pioneered the concept in its next-generation Panoramic iDrive cockpit system, showcased at CES 2025. BMW plans to roll out mass production of P-HUD systems by 2026, potentially accelerating adoption worldwide.
Other suppliers—including Continental, BOE, New Vision, Harman, Valeo, and Hyundai Mobis—are also preparing panoramic HUD solutions, signaling a coming wave of competitive innovation.
HUD Industry Chain: Comprehensive Ecosystem
The report maps the complete industry chain, spanning component suppliers, system integrators, and OEMs.
Major HUD Suppliers
Global and domestic suppliers alike are competing aggressively. Key players include:
- Nippon Seiki, Continental, Denso, Panasonic, LG, Harman, Hyundai Mobis, Envisics, Huawei, Neusoft, and ADAYO.
- Specialized players such as Crystal Optech, FUTURUS, OneSight, and CY Vision are pushing optical and AR-focused solutions.
Upstream Supply Chain
The HUD ecosystem relies heavily on advanced optics, semiconductors, and display technologies. Companies such as Kyocera, BOE, AUO, Himax, Epson, Texas Instruments, and ams OSRAM play pivotal roles in supplying critical components.
Materials and Glass Providers
Suppliers like Fuyao Glass, AGC, Corning, and Saint-Gobain provide the transparent surfaces and coatings essential for projection clarity.
Technical Trends and Future Outlook
The report identifies several emerging trends that will shape the market trajectory through the decade:
- AR-HUD scaling in both quality and quantity – Expanding field of view (FoV), longer virtual image distances (VID), and larger imaging screens.
- Multi-focal plane HUDs – Addressing depth perception issues to reduce driver eye strain.
- Micro LED adoption – Driving the next wave of display efficiency and brightness improvements.
- P-HUD adoption – Expected to grow rapidly as panoramic displays become central to next-gen cockpits.
- Integration with intelligent cockpits – HUDs evolving into multi-display, software-driven ecosystems aligned with the broader push toward software-defined vehicles.
Market Forecast: 2022–2029
According to the report’s projections, the Chinese HUD market will continue expanding steadily through 2029. Installation rates are expected to rise alongside the penetration of intelligent and connected vehicles. With AR-HUD and P-HUD adoption accelerating, the technology will soon be considered a standard feature in mid- to high-end vehicles, eventually filtering down to entry-level models.
