Same-Day Analysis: IHS forecasts automotive display systems market to grow to USD18.6 bil. by 2021
IHS estimates global revenue from automotive display systems will grow at a compound annual growth rate (CAGR) of more than 11% by the end of 2021.
IHS Automotive perspective
- Significance: Leveraging data from IHS Automotive Display Market Tracker and Components Forecasts and Analysis, IHS estimates global revenue from sales of automotive displays will reach USD18.6 billion annually by 2021 - an increase of nearly USD9 billion compared with 2015.
- Implications: Increased safety and connectivity technology in vehicles, as well as continued innovation expected to lead to autonomous vehicles, is forecast to drive the growth.
- Outlook: In-vehicle display growth will mean that more vehicles will debut new displays and standardise larger units, according to Mark Boyadjis, senior analyst and manager for infotainment and HMI at IHS Automotive. Global production volumes for factory-installed centre stack and instrument cluster display systems are estimated to exceed 60 million units by 2021, with head-up displays exceeding 6 million units annually in the same time period.
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% to USD18.6 billion by the end of 2021. This will add nearly USD9 billion in annual revenue compared to 2015, according to IHS.
Data from the Automotive Display Systems Forecasts from IHS represents production of instrument cluster systems, head-up display systems and centre stack display systems as full automotive modules, not just display panels. Centre 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% 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 centre stack and instrument cluster display systems are each estimated to grow by more than 40% 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%, surpassing 6 million units annually in that same timeframe.
The forecast 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 centre 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% 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 of 7.0 inches and larger are forecast to reach 33.5 million units, growing at a CAGR of nearly 10%, 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 centre 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 centre stack displays are shifting to 7.0 inches and larger. Centre stack displays between 8.0 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 affect global automotive display shipments.
The Automotive Display Systems Forecasts from IHS provides automotive suppliers and OEMs with timely, reliable, and comprehensive component market data and forecasts with optional customised 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 aftermarket applications.
Outlook and implications
IHS Automotive forecasts that global automotive production will grow from 88.0 million in 2015 to 105.0 million in 2021. The 60 million units with factory-installed centre stack and instrument cluster display systems will represent about 57% of all vehicles produced, also suggesting potential for further growth. IHS also forecasts that more than 6 million vehicles will take head-up displays; while significant growth is forecast, installations are forecast to be less than 6% of global production.
Boyadjis also notes that some automakers are advancing installation of these systems at a quicker pace. "GM [General Motors] is forecast to increase its installation of head-up display systems from 4.2% of production in 2015 to 11.0% in 2021. However, luxury maker BMW has already implemented much of this technology across its lineup, so the installation rate is already at 20.2% and will grow to 37.2%."
"Other OEMs will approach HUD with different strategies," Boyadjis commented. "PSA and Mazda, for example, will reach 11.9% and 21.1% of global production of HUD systems in 2021, respectively, representing relatively high penetration of the technology. As a contrast, higher-volume OEMs like Toyota (including Lexus) and Volkswagen (including Audi) will have relatively low HUD penetration, and will only reach 2.3% and 7.4% of global production in 2021, respectively."
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.
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