The automotive night vision system market is poised to exhibit notable growth through 2028 owing to prominent technological advancements in the product. In addition, rising cases of motor vehicle accidents are likely to further promote industry expansion over the forecast period.

Automotive night vision systems use a thermographic camera to boost visibility and depth perception of the driver in darkness or poor weather conditions beyond the extent of the vehicle's headlight. Certain vehicles provide this system as an optional equipment.

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Notably, several studies have indicated that a high number of accidents happen during nighttime. To that effect, the U.S.' National Highway Traffic Safety Administration has established that nearly half of passenger vehicle occupant accidents take place in the night. This has prompted manufacturers to explore the integration of night vision systems in order to reduce these occurrences, which has been favorable for the automotive night vision system market.

Recently, increased research focus on product development and innovation has driven consumer interest in the sector, thereby positively influencing business growth. For instance, an April 2021 Journal of Real-Time Image Processing study discussed a new night-vision system that could resolve problems in real time for autonomous and manual-driving vehicles. The system involved region segmentation of frames, local enhancement methods in different regions, and adaptive Gaussian filtering.

For comprehensive assessment, the automotive night vision system market has been divided in terms of product, display, component, and region. Based on display, the market has been further segregated into instrument cluster, head up display, and navigation display.

The head up display sub-segment holds a considerable share in the market and is anticipated to attain a notable valuation by the end of 2028, growing at a strong CAGR through the assessment period. Growing integration of advanced head up displays (HUDs) in new vehicles to improve vehicle safety is set to fuel the progress of the segment in the coming years.

From the component perspective, the market has been bifurcated into sensors, night vision camera, and controlling unit. The automotive night vision system industry share from the night vision camera sub-segment is projected to grow at a steady pace over 2022-2028. Technological advancements in automotive camera sensors are likely to support segmental expansion over the following years.

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On the regional spectrum, the Latin America automotive night vision system market accounted for approximately 8% of the global industry in terms of revenue in 2021 and is speculated to witness substantial growth through 2028. Soaring number of initiatives taken by the government to promote road safety in LATAM is foreseen to promote regional market growth in the future.