Demand for automotive display systems is projected to continue rising rapidly this year as automakers cram more technology into their vehicles in a quest to create differentiation, according to research firm IHS Markit.
The latest IHS Markit forecast predicts that shipments of automotive display panels will increase by 11% this year, reaching 164 million units. Shipments of automotive display panels increased by 9% last year.
A separate IHS forecast projects that shipments of the three primary automotive display systems — instrument-cluster, center-stack, and head-up display systems — will grow 9% in volume this year, reaching 118.5 million units. This forecast also predicts that the total market for these three types of systems will increase by 17% this year to reach $13.5 billion.
Rhodes said that high-resolution, large displays that had been used only in luxury vehicles a few years ago are now being used in mass-market car brands as prices decline and consumer demand increases.
According to IHS, a major enabler for the growth of automotive display systems is coming from the supply chain. Large global display panel manufacturers in Asia have recently invested heavily in automotive display panel production to continue sales growth as display markets in other areas have slowed, such as smartphones and tablet PCs, according to the firm.
“As vehicles adopt more technology, more new display use cases become viable and new display applications are born,” said Hiroshi Hayase, senior director of small and medium displays at IHS Markit. “In addition to the strong growth in the primary display market, we also expect strong growth in display mirrors, rear-seat entertainment, and even in aftermarket systems as buyers clamor for more digital interfaces.”
Global display shipments for rearview mirror applications are forecast to increase by a whopping 52% in 2018 to reach 1.6 million units, according to IHS. While automakers are keenly aware of the growing demand in this sector, the aftermarket mirror manufacturers are responding more quickly to the trend and represent a majority of today’s global production, said IHS.
— Dylan McGrath is the editor-in-chief of EE Times.