IHS forecasts automotive display systems market to grow to USD18.6 bil. by 2021

04 January 2016 IHS Markit Automotive Expert

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.

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.

Displays grow in both volume and sizeThe 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.

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.

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