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Automotive Display Systems to Grow to $18.6B by 2021
December 30, 2015 | IHSEstimated reading time: 3 minutes
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 percent to $18.6 billion by the end of 2021. This will add nearly $9 billion in annual revenue compared to 2015, according to IHS Inc., a leading source of critical information and insight to the global automotive industry.
Data from the Automotive Display Systems Forecasts from IHS represents production of instrument cluster systems, head-up display systems and center stack display systems as full automotive modules, not just display panels. Center 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 percent 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 center stack and instrument cluster display systems are each estimated to grow by more than 40 percent 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 percent, surpassing 6 million units annually in that same timeframe.
The forecasted 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 center 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.
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