Market Trends of Automotive Display Industry
This section covers the major market trends shaping the Automotive Display Market according to our research experts:
Increasing Demand of OLED Displays in the Luxury Vehicle is Expected to Witness Faster Growth Rate
- The rising demand for luxury vehicles in developing countries is expected to fuel the automotive display system market. The luxury car market segment is expected to grow at a rate ranging from 8 to 14 per cent per year during the forecast period. In India, Mercedes-Benz, BMW, and Audi are the top luxury car manufacturers. These car manufacturers collectively reported sales of around 22,500 units in 2021.
- Luxury car manufacturers such as Lexus, Audi, and others have integrated technologically advanced display systems into their vehicles. For instance, in October 2022, Cadillac unveiled the Celestiq, its handcrafted, all-electric flagship. The vehicle's large, 55-inch-diagonal advanced HD screen is one of five high-definition displays, with rear passengers having their 12.6-inch-diagonal advanced displays.
- Technology has advanced to the point where it is cost-effective, such as thin-film-transistor liquid-crystal display (TFT-LCD) and organic light-emitting diode (OLED), which aids in the enhancement of display resolution and features. Furthermore, it is useful in map navigation and multimedia options, which will likely drive demand for automotive display systems. OLED panels are gaining popularity in the luxury car market owing to their high flexibility in design and growing demand from original equipment manufacturers (OEMs) in their new model launches. For instance, Currently, Active Matrix OLED (AMOLED ) screens are being used mostly for rear seat entertainment in luxury cars.
- However, to reach automotive-grade specifications, AMOLED material and display costs are expected to be high. This is expected to slightly hinder the market's growth. With the evolvement of intelligent connectivity technology, cars will be mobile smart terminals. In addition to cluster & center console dual displays, HUD, electronic rearview mirror displays, copilot recreation displays, rear seat entertainment displays, and transparent A-pillars have emerged.
- Moreover, according to the concept models released by Oz EMs, curved displays will shine in the automotive display field in the future. Luxury brand cars and new energy vehicles are now making use of OLED displays. Previously, they only used small displays such as transparent A-pillars, and Audi virtual rearview mirror displays. Such developments are likely to enhance the demand for displays in the market during the forecast period.
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Asia-Pacific Expected to Capture Significant Market Share During the Forecast Period
- Asia-Pacific is expected to see faster growth in the market studied, owing to the increasing adoption of rear seat entertainment displays in taxis as well as display manufacturers have been focusing on the production of OLED technology.
- In India, automobile production has increased; Passenger car production has increased from 3,062,280 units in 2020-21 to 3,650,698 units in 2021-22. On the other hand, Commercial Vehicles production has increased from 624,939 units in 2020-21 to 805,527 units in 2021-22. Major taxi aggregators like Uber and Ola have been significantly installing rear seat entertainment display panels in their premium and luxury taxi cabs over the past two years to attract customers' attention and booking preferences.
- Automotive display manufacturers like Visionox in China will be providing Zhejiang Hozon New Energy Automobile Co., Ltd. (Hozon) with intelligent cabin display products featuring centre information display (CID) systems, dashboards, head-up display instruments, and rear seat entertainment display instruments for autonomous New Energy Vehicles (NEVs). These displays are manufactured based on advanced organic light-emitting diode (OLED) technology. Moreover, key players in the other Asia-Pacific countries are also installing the advanced display system in their vehicles which is also expected to play a dominant role in the market growth.
- In October 2022, Mazda Sale Thailand introduced four special models under the brand name Carbon Edition, each with its personality. The Mazda3 Carbon Edition 4-door sedan features black alloy wheels and a 360-degree image display system.
- Therefore, all the above-mentioned developments and advancements in the market will likely contribute to the holistic development of the Asia-pacific region over the forecast period.
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