Englewood, Colo. – The global automotive display systems market is forecast to reach $18.6 billion by 2021, driven by vehicle connectivity, infotainment and safety technologies, according to the latest report from IHS Inc. This translates into a compound annual growth rate (CAGR) of more than 11 percent by the end of 2021, and adds nearly $9 billion in revenue compared to 2015.
In addition to display panels, the report, Automotive Display Systems Forecasts, covers production of instrument cluster systems, head-up display (HUD) systems and center stack display systems. IHS forecasts that center stack display systems will account for 50 percent of the overall revenue growth, while HUD systems will garner the strongest revenue CAGR at nearly 21 percent from 2015.
Similarly, a recent report from Transparency Market Research forecasts that the global HUD market will grow at a CAGR of 19.1% from 2015 to 2022. “There is a growing trend of the incorporation of HUDs in the high-end and premium car segment and the manufacturers of mid-segment cars are anticipated to adopt this technology in the near future to enhance driver safety,” said the market research firm.
“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, in a statement. “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.”
IHS expects global production volumes for both factory-installed center stack and instrument cluster display systems to each grow by more than 40 percent over the forecast period. This translates into more than 60 million units for each system category by 2021. IHS also forecasts that the production of HUD systems will exceed 65 percent, surpassing 6 million units.
The global growth is based on several factors, said IHS. Analysts attribute growth in China to OEMs starting to add smaller displays into the instrument cluster and center stack, while regional vehicle sales are growing. In addition, HUD systems are growing globally as prices fall and they become more applicable to reduce driver distraction.
Another key finding indicates that automotive displays are growing in size and volume. Analysts expect OEMs to move from 3- and 4-inch to more than 5-inch instrument cluster displays, and to shift to 7-inch and larger center stack displays. Today, 8- and 10.0-inch center stack displays are common in high-end vehicles, and are being introduced in high-volume vehicles such as D-segment sedans and crossovers, said IHS.
By 2021, 7-inch and larger automotive displays are forecast to reach 33.5 million units, growing at a CAGR of nearly 10 percent, said IHS.
“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, in a statement. “Vehicles are designed with displays in mind, combining digital clusters, HUDs and center stack displays for a truly immersive experience for the driver.”
At the same time, OEMs are considering larger displays in the center stack, instrument cluster, and other applications, driven by increasing demand for infotainment functions, safety systems and vehicle electrification, according to IHS.
IHS forecasts global shipments for automobile display components to grow at a CAGR of more than six percent, reaching 170.6 million units by the end of 2021. The Automotive Display Market Tracker H2 2015 forecasts that at least two TFT-LCD or AMOLED displays will be in all new cars produced in 2021.
Other growth segments include aftermarket applications for automotive displays. IHS expects continued high demand for aftermarket navigation systems and radios in China, Russia, and Brazil.