The development of intelligent vehicles has significantly boosted the demand for in-vehicle displays, driving the expansion of the in-vehicle display market and technological upgrades. The following is a detailed analysis:
I. The development of intelligent vehicles drives the growth in demand for in-vehicle displays.
Increased demand for intelligent cockpit terminals: As the core terminal system of intelligent cockpits, in-vehicle displays are a key carrier for realizing intelligent human-vehicle interaction. Intelligent vehicles, by integrating intelligent driving, intelligent interaction, and intelligent service functions, have significantly increased their reliance on in-vehicle displays. For example, the widespread adoption of HUDs (Head-Up Displays), LCD instrument panels, and LCD central control units directly drives the demand for in-vehicle display panels.
Accelerated penetration of multi-screen trends: With the advancement of automotive intelligence and electrification, in-vehicle displays are evolving from single-screen to multi-screen configurations, with the penetration rate of three-screen and four-screen configurations continuing to increase. Global shipments of in-vehicle display panels exceeded 160 million units in 2021 and are projected to reach 226 million units by 2025, showing a significant compound annual growth rate. The expansion of the new energy vehicle market: The national goal of "carbon peaking and carbon neutrality" is driving the rapid development of the new energy vehicle market. China's automobile sales are projected to reach 30 million units by 2025, with a significant increase in the proportion of new energy vehicles. New energy vehicles have higher demands for intelligent configurations, further boosting demand for in-vehicle displays.
Global market growth: The global automotive display market was worth approximately US$7.2 billion in 2020 and is projected to exceed US$12.8 billion by 2025, with a compound annual growth rate (CAGR) of over 12%. This market expansion is mainly attributed to increased penetration of intelligent vehicles, the widespread adoption of multi-screen configurations, and upgrades in display technology.
Huge potential in the Chinese market: As the world's largest automobile market, China is experiencing strong growth in intelligent vehicles. With the automotive market transitioning from incremental to stock-based growth during the 14th Five-Year Plan period, the demand for upgrading in-vehicle displays will become a significant driver of market growth.
III. Technological Upgrade Directions for In-Vehicle Displays
Display technology iteration: In-vehicle displays are upgrading from traditional LCDs to high-end technologies such as Organic Light Emitting Diode (OLED) and AMOLED. OLED technology boasts advantages such as self-illumination, high contrast, and wide viewing angles, enhancing the visual effects and interactive experience of in-vehicle displays and driving product value enhancement.
Functional Integration: In-vehicle displays are increasingly integrating more functions, such as navigation, entertainment, vehicle status monitoring, and intelligent voice interaction, becoming the "information hub" of the intelligent cockpit. This trend places higher demands on display resolution, response speed, and reliability.
Larger Screens and Curved Designs: To meet consumers' demands for a sense of technology and luxury, in-vehicle displays are developing towards larger screens and curved designs. For example, the size of the central control screen has expanded from 10 inches to over 15 inches, while curved screen designs enhance the overall aesthetics of the cockpit.
IV. Driving Factors Analysis
Policy Support: The national "dual-carbon" target promotes the development of new energy vehicles. Intelligent vehicles, as the core direction of new energy vehicles, will continue to receive policy dividends, providing long-term growth momentum for the in-vehicle display market.
Consumer Upgrade: Consumers' demand for intelligent vehicle configurations is growing daily. As the core entry point for intelligent interaction, the performance and experience of in-vehicle displays are becoming important factors in car purchase decisions.
Technological Advancements: Advances in display technology, chip technology, and software algorithms have supported the functional upgrades and cost optimization of automotive displays, accelerating product iteration and market penetration.
V. Future Outlook
Continued Penetration Rate Increase: As the cost of smart cars decreases and consumer acceptance increases, the penetration rate of automotive displays will further increase, especially in high-end models and new energy vehicles.
Industry Chain Collaborative Development: Upstream and downstream companies in the automotive display industry chain (such as panel manufacturers, vehicle manufacturers, and software suppliers) will strengthen cooperation to promote technological standardization and ecosystem improvement, enhancing the overall competitiveness of the industry.
Expanding Emerging Application Scenarios: Automotive displays are expected to combine with technologies such as AR/VR and 5G, expanding into emerging scenarios such as augmented reality navigation and remote work, further opening up market space.
Conclusion: The development of smart cars has become the core driving force for the growth in demand for automotive displays, promoting market expansion and technological upgrades. In the future, with the deepening trends of multi-screen, large-screen, and high-end products, automotive displays will become one of the fastest-growing segments in the smart car industry chain.
