Market Overview

Global shipment volume of automotive displays (number of panels) recovered in 2021 from the year-on-year drop due to the COVID pandemic in 2020. However, the decline was not as bad as that for automotive production. Despite the downturn forecasted for global production volume of automotives in 2022, the automotive display market is expected to grow steadily hereafter, with growth rate exceeding the market growth of automotives.In line with the steady growth of automotive displays, the demand for key components such as automotive touchscreens, display covers (front panels), antireflective films for displays, and OCA/OCR are also expected to expand continually. Coupled with the full-scale production of EVs and the introduction of autonomous driving, the demand is expanding steadily for automotive display components that adapt to the trend of curved, larger displays with higher resolution.

Noteworthy Topics

Development of Safer Integrated Cockpit Proceeds, as Exemplified by Switchable Privacy Display

Integrated cockpit systems, which are also called multi-displays or super-long displays, are the large-sized pillar-to-pillar displays comprised of informatic displays for drivers like CID (Center Information Display) and cluster (Instrument Cluster), and infotainment display for passengers like PID (Passenger Information Display). However, such system has a risk of distracting drivers from being attentive, which leads to side-glancing driving that may cause serious traffic accidents.

Under the circumstances, switchable display technology developed by automotive display component makers is gathering attention. The switchable display technology allows a driver to turn off PID only, by means of a switchover. Meanwhile, components developed by touchscreen makers, such as glass decorative film with sensor can also be utilized to meet the needs, by enhancing the control of multiple displays during driving, although it is not fully switchable.

Future Outlook

For many years, display component manufacturers lacked initiative in the development of demand for automotive display components, which had been influenced by the trends of OEMs in automotive (automobile manufacturers) and automotive display manufacturers.  Component manufacturers had been committed to meet the function and performance required by Tier 1 makers (primary parts suppliers) and OEMs, developing products that meet their strict quality standards. Although these efforts have brushed up the technological capabilities of each company and contributed to the evolution of automotive displays, the component makers tend to be passive in terms of business development. Component makers are vulnerable to the slowdown in the business performance of their customers.

However, efforts to digitalize automobiles are accelerating with the spread of EVs and the introduction of autonomous driving even amid the slump of automobile production. Unconventional displays with completely new functions will be installed in the future.

A de facto standard for the components and configurations of new displays are yet to be finalized, and thus the situation has opened up huge opportunities for automotive display component manufacturers to propose new technology and/or joint development. Automotive display component manufacturers are required to enhance their technological skills and development capabilities to respond to the innovations of Tier 1 makers and OEMs. In a meantime, it can be said that the raison d'etre of automotive display component manufacturers is in generation of new demand by actively developing products by themselves. Display component makers taking initiative will grow the market going forward.

Research Outline