According to a new research report released by market research and strategy consulting firm, Global Market Insights, Inc, the automotive display market will grow at a CAGR of 10 % from 2019 to 2025. The report stated that the global industry unit shipments are set to exceed 350 million units by 2025.
The global automotive display market is driven by technological innovations such as car connectivity and development of infotainment systems. The earlier idea of having a small screen for the central console and CD players for basic operations has completely changed with new, larger, more efficient, and technically-advanced displays coming into picture, the report revealed.
The Global Market Insights, Inc. report stated that infotainment & navigation systems have become standard features in most cars, whereas luxury car manufacturers have been shifting to the digital instrument clusters, multiple displays in car cabins, rear seat entertainment displays, and head-up displays. It may be noted that Audi A8 and Mercedes-Benz S class initiated the trend of implementing dual screens and multiple touch surfaces. The popularity of rear seat entertainment and infotainment systems of the car has added to the automotive display market's growth, the report pointed out.
According to the report, owing to the increased need for vehicle safety features, technologies such as augmented reality have turned from a mere concept into reality. Many luxury car brands such as BMW, Jaguar, and Mercedes-Benz have already implemented AR head-up displays in their cars. Augmented reality shows the situation-specific data on windshields than just basic information. The drivers can see external objects as well as their distance and shape on the windshield. In addition, car manufacturers in the automotive display market are implementing digital instrument clusters that display more information than just speed and distance.
It may be pertinent to point out that Visteon developed the first all-digital instrument cluster and cockpit, which shows displays throughout the car’s dashboard with curved display panels.
Given the growing sales of passenger cars, the rising demand for connected vehicles, and a high disposable income, the automotive display market has been witnessing a rapid growth, especially in Asian & European economies, the report noted.
The report underlined Europe as another dominant region for the market due to the presence of a large number of luxury car manufacturers such as Mercedes-Benz, Audi, Porsche, BMW, and Jaguar Land Rover. It may be mentioned that most of the luxury car brands are providing large integrated displays and rear seat entertainment systems as a standard in their flagship offerings such as Audi A8 and Mercedes S class. Moreover, these cars also provide multiple displays in the driver’s cabin for more interactive surfaces in car, which is significantly contributing to the high growth of the automotive display market in European countries. The disposable income in Europe is higher, which will result in the demand for expensive ADAS systems with more convenience, safety, and comfort features, the report added.
Although the automotive display market has a high growth potential, there are some challenges and factors restraining its growth, one being the high costs of Advanced Driver Assistance Systems (ADAS). The costs associated with technologies such as augmented reality and OLED panels are higher leading to high prices of cars, which is limiting the automotive display market. The touch surfaces are not yet as reliable as mechanical buttons and systems. In addition, larger displays if not implemented properly results in difficulty of operation, making it unsafe for drivers, the report stated. For example, Tesla’s large display which is difficult to operate due to its size and drivers need to look at the display every time while operating it. This problem is being resolved with the introduction of 3D touch surface displays by Continental AG.