Automotive display growth shifting to safety systems

Article By : EE Times India

While today’s volumes are large for infotainment display panels, safety-critical display panels will see double-digit growth through 2022, according to IHS Markit.

The primary automotive display systems market is set to increase drastically over the next five years, according to a new report from IHS Markit.

Globally, the market is expected to reach ₹8,874.01 crore ($11.6 billion) in tier one supplier revenue in 2017. Analysts at IHS Markit said the most valuable are centre stack displays and instrument cluster displays, which represent global revenues of ₹41,476.85 crore ($6.1 billion) and ₹32,637.52 ($4.8 billion) respectively. Head-up displays (HUD) account for only ₹4,970.424 crore ($731 million) today, but show the largest growth potential in terms of percentage going forward through 2022.

In 2022, combined value from the three sectors will total more than ₹1.41 lakh crore ($20.8 billion), an increase of ₹62,555.25 crore ($9.2 billion) in annual revenue in just five years, according to IHS Markit.

“There are a few different sources of this increase in display value within the automotive sector,” said Brian Rhodes, automotive technology analyst for IHS Markit. “First are simple volume increases, with more vehicles adding new displays to the instrument cluster and centre stack, along with Head-up display deployments becoming more common. The second area of growth is in the technology value itself, as these displays are becoming larger and more capable—and therefore more expensive.”

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Figure 1: Global automotive display component revenue forecast (Source: IHS Markit)

Continental is expected to be the top supplier of primary automotive display systems in 2017 based on global revenue forecasts, the IHS Markit research said. Visteon follows closely behind, as the only other supplier with a double-digit market share in this space. Panasonic, Denso and Bosch round out the remaining market share leaders in the top five. Combined, these suppliers account for more than ₹40,796.90 crore ($6 billion) in revenue resulting from centre stack display, instrument cluster display and head-up display systems in 2017.

“The top five primary display system suppliers command more than half of the total automotive display systems market,” Rhodes said. “While this is certainly a large portion of revenue for a handful of large players, it still means there is an incredible amount of fragmentation left over offering opportunity for the rest of the supply base—both in today’s market and in the foreseeable future based on our forecasts.”

Meanwhile, thin film transistor liquid crystal display (TFT LCD) automotive display panel market shipments are expected to grow from 135 million units in 2016 to 200 million units in 2022. This technology will represent more than 67% share of total automotive display shipments, according to the Automotive Display Market Tracker from IHS Markit.

“The market growth momentum has shifted from centre stack display, rear seat entertainment and other infotainment displays, to safety system displays, namely instrument cluster display, head-up display and eMirror systems,” said Stacy Wu, principal analyst for IHS Markit.

While today’s volumes are large for infotainment display panels, safety-critical display panels will see double-digit growth through 2022, according to IHS Markit forecasts.

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Figure 2: Forecast for global automotive display panel shipment by technology (Source: IHS Markit)

Based on the latest findings from IHS Markit, Japan Display, Innolux, Sharp, AU Optronics and LG Display are the top five TFT LCD automotive display panel manufacturers, representing more than 65% of the market in 2016.

“However, we expect to see increasing share gains from new entrants and possible ranking switches as well,” Wu said. “Stagnant panel demand from consumer electronics segments like notebooks, tablets, and smartphones, together with excess production capacity, is forcing display panel makers to enter the fast growing automotive market.”

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