Automotive Smart Display Market Size, Share & COVID-19 Impact Analysis, By Size (Up to 5, 5

The global automotive smart display market size was valued at USD 13.92 billion in 2022. The market is projected to grow from USD 14.72 billion in 2023 to USD 23.37 billion by 2030, exhibiting a CAGR of 6.8% during the forecast period.

An automotive smart display is a screen or interface incorporated in a vehicle that integrates advanced technologies, providing multiple functions. Such displays have touch screens, voice-enabled control systems, gesture control systems, and connectivity systems that give users easy navigation, entertainment and communication, and other options. These displays also ensure vehicular safety by providing driver safety functions, real-time battery and engine temperature diagnostics, tire pressure, and fuel capacity. Smart displays support smartphone integration, such as Apple CarPlay and Android Auto, to extend display capabilities and enhance the driving experience. The growing demand for advanced features, such as navigation, multimedia systems, driver assistance, connected vehicle functions, and improved communication between driver and vehicle, drives the automotive smart display trends.

COVID 19 IMPACT

Market Plunged Amid Pandemic due to Shutdown of Key Auto Assembly Plants

The COVID-19 pandemic severely hampered the automotive industry, and the extended closure of major economies led to the closure of auto assembly plants worldwide. The shutdown of vehicle manufacturing and the significant drop in demand for vehicles has reduced demand for vehicle displays, affecting this industry. The COVID-19 pandemic hampered the production of automotive smart displays, with major manufacturers, such as LG, Garmin, Nippon Seiki, Panasonic, Bosch, and Continental, suspending their operations. Low component demand and adherence to government policies affected automotive smart display market growth.

The rapid containment of the COVID-19 pandemic and its economic recovery have contributed to a strong and evolving vehicle ecosystem, resulting in a rise in smart display incorporation into vehicles. The rise in connected, semi-autonomous, and autonomous vehicles and technological advancements in vehicles with intuitive interfaces contributed to the resurgence of display requirements in this industry. The post-pandemic rise in demand for high-end luxury and mid-size cars with advanced safety features and navigation systems is anticipated to enhance market demand. For instance, Mercedes Benz noted a 5% rise in its luxury segment model sales in 2022 compared to its previous year.

LATEST TRENDS

Rapid Adoption of OLED Panels brings Positive Trend to the Market

The rapid adoption of reality-based technologies and autonomous vehicles is expected to augment in-vehicle infotainment systems, which are becoming increasingly sophisticated, leading to a surge in demand for larger and higher-resolution automobile displays. The integration of interactive displays has become a key feature of the manufacturing processes used by most major car manufacturers. OLED displays are gaining popularity with renowned car companies, such as Volkswagen, Jaguar Land Rover, Toyota, GM, Mercedes-Benz, and Audi.

• For instance, In august 2023, Mercedes and LG are strengthening their collaboration by applying cutting-edge automotive displays from LGD to its luxury vehicles. Mercedes-Benz is working with LG Display to integrate OLED panels into the rear seat and dashboard displays of new vehicles. Mercedes-Benz will be the first automaker to use OLED in consumer models.

Advanced technology such as a Thin-Film-Transistor Liquid-Crystal Display (TFT-LCD) and Organic Light-Emitting Diode (OLED), enhancing display resolution and features are also cost-effective. Furthermore, it is useful in map navigation and multimedia options for automotive display systems. OLED panels are gaining popularity in the luxury car market due to their high design flexibility and growing demand from original equipment manufacturers (OEMs) in their new model launches.

• For instance, in July 2023, Mini announced the introduction of its Next-Gen Mini models with a Round OLED Screen and Animated Digital Assistant. The automotive industry's first 9.4-inch circular OLED screen will be powered by the colorful and customizable Mini Operating System 9 software.

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DRIVING FACTORS

Integrating Smartphone Connectivity into Vehicles to Drive Market Growth

Synchronization of smartphones with infotainment systems, such as Apple CarPlay, Spotify, and Android Auto, could increase the demand for upgrading vehicle displays. A similarity between Android Auto and Apple CarPlay is the use of smartphones to run operating systems integrating advanced features, such as cockpit electronics, easy access to music, and easy navigation without distracting the driver.

These operating systems also have integrated voice support, such as Apple Siri & Google Assistant, to provide a hands-free experience. Integrating the corresponding kit is essential for automakers to run their operating systems efficiently. Therefore, several manufacturers are adopting and developing this technology in their vehicles by allowing support functions as standard or as an option in their infotainment systems.

• For instance, in May 2023, Nvidia Corp and MediaTek Inc. collaborated to improvise connected car technology to power advanced vehicle infotainment systems that can stream video and interact with drivers using artificial intelligence or augmented reality. Under the agreement, MediaTek will integrate an Nvidia graphic processing unit chiplet and Nvidia software into the system for infotainment displays showing vehicle surroundings and monitoring drivers.

RESTRAINING FACTORS

Growing Threat of Cyberattacks Could Hamper Market Growth 

The rapid adoption of advanced technology has resulted in most modern vehicles being equipped with advanced features, typically wireless technology, ultimately increasing the risk of cyber-attacks. As vehicles become more connected via various devices, such as smartphones, navigation tablets, and music players, the risk of malware and virus attacks through vehicle information terminals and vehicle entertainment systems increases. Excessive and weak connections also increase the risk of hacking. As security and privacy are the cornerstones of telematics products, the current global economic scenario indicates that people's inclinations toward advanced technology are changing. The collected information can be misused through telematics.

Material used for manufacturing the display system also plays an important role. However, to reach automotive-grade specifications, AMOLED material and display costs are expected to be high. Thus, it is expected to hinder the market’s growth slightly. In addition, cybercriminals can hack vehicle applications to collect or enter bogus data into systems. Additionally, there is a high risk that data will be shared with third parties without the consent of the application provider or Telecommunications Service Provider (TSP). Prominent companies invest heavily in research to develop intelligent vehicle display systems that leverage advanced technologies, such as AI. Such advanced vehicle features create additional costs for manufacturers, ultimately leading to higher vehicle production costs and decreasing automotive smart display market share.

• For example, in April 2023, GM announced replacing the current car-connected service with built-in on-board infotainment systems developed with Google (Alphabet Inc.) for future electric vehicles.

SEGMENTATION

By Size Analysis

5” To 10” Segment Held the Largest Market Share Owing to its Multifunctional Property 

By size, the market is segmented into up to 5”, 5” to 10”, and above 10”. The 5” to 10” segment has the highest global market share. Most mid-segment cars are fitted with smart displays with sizes ranging from up to 5” and 5” to 10” as the car variants upgrade. The growing demand for integrating electronic systems with safety and security features and the increasing adoption of autonomous vehicles thus create a high demand for smart displays.

Above 10” segment is anticipated to be the fastest growing segment, followed by 5” to 10”. OEMs & technology-driven companies are joining forces to develop and incorporate more than 10’’ display units in the vehicle.  For example, in August 2023, Hyundai Motor Company debuted an all-new Santa FE SUV. The company claims to provide new interiors with SANTA FE’s first-in-class 12.3-inch Panoramic Curved Display, which encompasses a digital cluster and infotainment system, enhancing driver visibility and luxury factor.

By Display Technology Analysis

TFT-LCD Segment Dominates the Market Due to Enhanced Visual Quality 

By display technology, the market is segmented into LCD, TFT-LCD, and LED. The smart displays used in vehicles are usually TFT-LCDs, widely used in the demanding automotive field due to several benefits, such as high resolution, high brightness, reliability, and low cost. TFT-LCD panels can display monochrome or full-color video from DVDs, cameras, or other video inputs. They can be used as multi-character displays while integrating data from other sources. For example, Mitsubishi Electric Corporation launched its new TFT-LCD display in April 2019 for automotive, marine, and agricultural machinery applications where improved performance and top-quality large screens are required.

The LCD segment has grown significantly due to LCD panels in base instrument clusters, center console touchscreen displays, and touchscreen displays for backseat appliances in compact car models. In-vehicle LED smart display systems are expected to gain rapid adoption compared to other display technologies owing to the use of OLED display units with more innovation to be implemented in the upcoming vehicles.

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By Application Analysis

Center Infotainment Segment Dominates the Market due to its Multi-Monitoring Capability

By application, the market is segmented into digital instrument cluster, center infotainment, head-up display, and rear seat entertainment. The center infotainment segment, called center stack displays, accounts for the largest market share. Center infotainment is a system that provides interactive content, such as climate control, phone management, navigation, music, and other entertainment data in the passenger compartment. The increasing use of electronic components, elimination of multiple screens, and integration of advanced telematics and infotainment systems drive growth in this sector.

The digital instrument cluster and Head-Up Display (HUD) segment is estimated to record the fastest growth rate over the forecast period. Advances in display technologies and the growing trend of incorporating multiple display functions in a single display play a vital role in segmental growth. The head-up display and instrument cluster project necessary information about road signs, speed, speed limit, and turn-by-turn navigation, along with other driver alerts directly within the driver’s line of sight, reducing the chances of driver distraction. The rear-seat entertainment segment also indicates considerable growth due to rising luxury vehicle sales with premium feature options.

By Vehicle Class Analysis

Mid-Segment Dominates due to 

By vehicle class, the market is classified as standard-segment, mid-segment, and luxury. The mid-segment is expected to dominate the market during the forecast period. Passenger cars account for the largest sales of the total global automobile production. This segment offers the most required features, making it value for money. Asia is a leading market in the automotive sector with China, Japan, and India. Majority of the market in the region is price-sensitive, making this segment ideal and dominant.

The luxury segment also shows significant growth in the market. Increasing consumer disposable income, especially in China, India, and Mexico, drives the demand for luxury segment vehicles with advanced feature displays. The standard-segment also showcased considerable growth during the forecast period. The economical features with basic functionality in vehicles will create a lucrative growth in the automotive smart display sector during the forecast period.

REGIONAL INSIGHTS

Geographically, the market is classified into North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific leads the automotive smart display industry and is predicted to prevail in its position during the forecast period. The region’s growth is owing to increased demand for automobiles, increased traffic accidents, and the need to incorporate safety features into automobiles to ensure occupant and road safety. India, China, Japan, and South Korea contribute to the region's high growth and production of automobiles. The presence of global manufacturers, such as BHTC and Faurecia SA, and the huge demand for aftermarket smart displays in certain countries are driving the market’s growth in this region.

European market size is expected to grow significantly in the coming years. Europe is playing a key role with around 25% and 30% of luxury car sales share in 2021. The adoption of these displays and advanced technologies will help the region achieve healthy growth in the market.

North America observed significant growth in the market. The growth is attributed to the rising sales and innovation in products related to display technologies. Companies are actively looking for the mass production due to rising luxury vehicles sales and this sales growth is expected to be increased during forecast period.

KEY INDUSTRY PLAYERS

Advanced Automotive Display Portfolio Makes Continental AG to be the Leading Market Player 

Continental AG is a supplier of automotive products headquartered in Germany. It offers structural parts, electronics, and components for autonomous mobility, safety, behavior, architecture and connectivity, user experience, cabin interiors, telematics, and intelligent mobility applications. The company serves the passenger vehicles, trucks, buses, two-wheelers, agricultural, construction, mining, and material-handling vehicle markets. Continental AG is one of the dominant players in the market. The company is a leading innovator in automotive display solutions in its product portfolio, including curved ultra-wide display, V-shaped display, driver identification feature with 3D display, invisible display in the panel, OLED display, and switchable privacy featured display.

Furthermore, the increasing number of collaborations and expansions amongst automotive OEMs, technology providers, and semiconductor suppliers is expected to remain a key business strategy, thus helping companies gain prominence in the global market.

• For instance, in November 2022, Continental AG expanded its Timisoara site into a mega factory for display production. The company has invested around USD 44 million in expanding the production area by 60% which is 18,000 square meters. Continental AG has received over a billion orders for its V-shaped, 3D, and OLED displays.

LIST OF KEY COMPANIES PROFILED:

• Delphi Automotive PLC (Ireland)


• Continental AG (Germany)


• Robert Bosch GmbH (Germany)


• Nippon Seiki Co. Ltd. (Japan)


• Japan Display Inc. (Japan)


• Denso Corporation (Japan)


• Panasonic (Taiwan)


• Magna International Inc. (Canada)


• LG Display Co. Ltd. (South Korea)


• Hyundai Mobis (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - LG Display Co. announced the supply of its organic light-emitting diode (OLED) automotive display to Hyundai Motor Co.'s premium brand Genesis for its new GV80 model’s integrated dashboard infotainment system. The 2024 GV80 facelift model will be fitted with LG’s 27-inch OLED screen for the luxury SUV’s panoramic display, combining screens for the dashboard, navigation, and the SUV's infotainment system.


• June 2023 - Continental AG unveiled some of its upcoming automotive displays at the Mobility Tech Expo. The company technologically upgraded its products, such as a scenic view head-up display and a wider screen central display on the windscreen capable of indicating all important information and having local dimming technology. The company also claims to introduce face authentication in its displays.


• April 2023 - Samsung Display signed a Memorandum of Understanding (MOU) with Ferrari to develop a display solution for Ferrari’s next-generation models. Under this MOU, Samsung Display will develop an innovative automotive display solution with world-leading OLED technology to support Ferrari's seamless digital transformation.


• December 2022 - Marelli showcased its Diorama Display at CES 2023 in Las Vegas. The Diorama Display technology display uses a TFT source that provides high-quality reflections, clear visibility, and readability. It is placed on the lower side of the windshield, showing all information, images for navigation, indicators, and other warnings.


• November 2022 - AUO Corporation has partnered with Analog Devices Inc. to integrate ADI's matrix LED display driver technology into its automotive widescreen display range. This industry-first technology enables local dimming, reduces power consumption by at least 50%, and meets functional safety requirements.

REPORT COVERAGE

The market research report consists of a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers in-depth market analysis of several factors that have contributed to its growth over recent years.

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