"There is additional growth opportunity in lower volume display applications for rear seat entertainment, HVAC control panels, and new applications such as smart mirrors with full displays entering the market now."
ENGLEWOOD, Colo.--(BUSINESS WIRE)--Driven by continued innovation in vehicle connectivity and safety
technologies, global revenue from automotive display systems will grow
at a compound annual growth rate (CAGR) of more than 11 percent to $18.6
billion by the end of 2021. This will add nearly $9 billion in annual
revenue compared to 2015, according to IHS Inc. (NYSE: IHS), a leading
source of critical information and insight to the global automotive
Data from the Automotive
Display Systems Forecasts from IHS represents production of
instrument cluster systems, head-up display systems and center stack
display systems as full automotive modules, not just display panels.
Center stack display systems are expected to account for half of the
overall revenue growth, while head-up display (HUD) systems will boast
the strongest revenue CAGR at nearly 21 percent from 2015.
“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,” said Mark
Boyadjis, senior analyst and manager for Infotainment and HMI at IHS
Automotive. “There is additional growth opportunity in lower volume
display applications for rear seat entertainment, HVAC control panels,
and new applications such as smart mirrors with full displays entering
the market now.”
Global production volumes for factory-installed center stack and
instrument cluster display systems are each estimated to grow by more
than 40 percent over the forecast period, each surpassing 60 million
units by 2021. IHS forecasts an even higher growth rate for the
production of head-up display systems, which will exceed 65 percent,
surpassing 6 million units annually in that same timeframe.
The forecasted global growth in display systems is based on multiple
factors. In China, for example, overall volume is boosted, because
original equipment manufacturers (OEMs) are beginning to add smaller
displays into the instrument cluster and center stack, while regional
vehicle sales also grow. Meanwhile, head-up display systems are growing
globally, as prices for these new and innovative display technologies
fall and they become increasingly relevant to reduce driver distraction.
Displays grow in both volume and size
Automotive displays are increasing in volume and in size. IHS forecasts
global shipments for automobile display components overall to grow at a
CAGR of more than 6 percent to 170.6 million units by the end of 2021.
According to the Automotive
Display Market Tracker H2 2015 from IHS, at least two TFT-LCD or
AMOLED displays will be in all new cars produced in 2021.
By 2021 automotive displays 7.0-inches and larger are forecasted to
reach 33.5 million units, growing at a CAGR of nearly 10 percent,
largely driven by the 8.0-inch size class. “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,” said Hiroshi
Hayase, director for small medium display at IHS Technology.
“Vehicles are designed with displays in mind, combining digital
clusters, HUDs and center stack displays for a truly immersive
experience for the driver.”
Increasing demand for infotainment functions, safety systems and vehicle
electrification have persuaded OEMs to consider larger, more complex
displays in the center stack, instrument cluster and other applications.
Global shipments for instrument cluster displays are shifting from
3.0-inch and 4.0-inch to more than 5.0-inches, and center stack displays
are shifting to 7.0-inches and larger. Center stack displays between
8.0-inches and 10.0-inches are already common among high-end vehicles
and luxury brands, and they are even being introduced in high-volume
vehicles, like D-segment sedans and crossovers.
Aftermarket applications for automotive displays also continue to grow,
with high demand for aftermarket navigation systems and radios in China,
Russia, and Brazil. These numbers also impact global automotive display
Display Systems Forecasts from IHSprovides automotive
suppliers and OEMs with timely, reliable, and comprehensive component
market data and forecasts with optional customizes analysis. The Automotive
Display Market Tracker H2 2015 from IHS covers all display
panels used in automotive applications, and includes detailed
specifications and trends of automotive display market by technology,
display size and resolution – including factory-installed and
IHS (NYSE: IHS) is the leading source of insight, analytics and
expertise in critical areas that shape today’s business landscape.
Businesses and governments in more than 140 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs approximately
8,600 people in 32 countries around the world.