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Automotive display market set to double through 2021

05 Jan 2016

Analysts at IHS expect safety, entertainment, and connectivity requirements to drive annual market beyond $18 billion.

New safety and connectivity technologies are expected to double the size of the annual market for automotive display systems by 2021, claims a new report.

Analysts at the consultancy firm IHS reckon that the sector – worth around $10 billion in 2015 – will grow at a compound annual rate of more than 10 per cent through 2021, swelling to around $18.6 billion.

Senior analyst Mark Boyadjis predicted: “The automotive displays supply chain will see some amazing growth and innovation through the end of the decade, as more vehicles debut new displays or standardize larger ones in the instrument cluster, center stack and head-up display systems.”

He also sees growth opportunities in lower-volume display applications for rear-seat entertainment, HVAC control panels, and new applications just entering the market such as smart mirrors with full displays.

Production volumes of the main display types are expected to soar to 60 million units over the next few years, although the highest rate of growth is reserved for head-up displays. They are set to increase 65 per cent, surpassing 6 million units annually by 2021.

IHS says that head-up systems are benefiting from both a fall in prices as volumes grow, as well as the need to reduce driver distraction as dashboards become more complex.

In-car AMOLED
The analyst company also predicts that, by 2021, new cars will feature at least two LCD or AMOLED displays, as the automotive sector follows consumer electronics in migrating towards larger screen sizes.

“By 2021 automotive displays 7 inches and larger are forecasted to reach 33.5 million units, growing at a compound annual growth rate of nearly 10 per cent, largely driven by the 8-inch size class,” states the report.

One of the report’s authors, Hiroshi Hayase, adds: “Automotive display sizes are growing quickly to help support multiple infotainment, safety and vehicle system functions that require more screen real estate to inform drivers and passengers.

“Vehicles are designed with displays in mind, combining digital clusters, head-up displays and center-stack displays for a truly immersive experience for the driver.”

• The latest edition of IHS’ Automotive Display Market Tracker is available via the analyst company’s web site now.

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