Automotive Suppliers Specializing in Displays Are the Future
【Summary】According to report by IHS Markit, the automotive display systems market is poised to reach $11.6 billion revenue globally this year.
As the automotive industry shifts towards a more technology-forward future, automotive suppliers and companies working on ways to bring new products to the masses will see immense growth. Companies and suppliers that are working on display systems, for instance, have an extremely bright future. The picture above, which is from a Mercedes-Benz S-Class reveals how heavily automakers have come to rely on high-end displays.
According to a report by IHS Markit, a company that provides information and analysis on various industries, including the automotive sector, the automotive displays systems market is on track to reach a total of $11.6 billion in global revenue sometime this year. That figure, as Automotive News reports, is a 17 percent increase over the previous year.
Automotive Display Market Continues To Grow
IHS Markit's "Automotive Display Systems Forecasts" report claims that Center Stack Displays and Instrument Cluster Displays are the most valuable pieces of technology. Both of the listed items, as the report points out, represent a global revenue of $6.1 and $4.8 billion respectively. Head-Up Displays (HUD) themselves account for approximately $731 million in sales as of today, but show an incredible potential for growth looking forward to 2022, reports IHS Markit.
Speaking of looking forward, the company believes that the combined value from the Instrument Cluster Display, Center Stack Display, and Head-Up Display system markets will bring in a combined $20.8 billion in total revenue by 2022. That's a large increase, as the figure was just $9.2 billion five years ago.
Brian Rhodes, an automotive technology analyst for IHS Markit, believes there are multiple reasons as to why the display sector is growing. "First are simple volume increases, with more vehicle adding new displays to the instrument cluster and center stack, along with Head-Up Display deployments becoming more common," said Rhodes. "The second area of growth is in the technology value itself, as these displays are becoming larger and more capable – and therefore more expensive."
Who Are The Leaders?
IHS Markit's research points towards Continental AG, a prominent automotive manufacturing company based in Germany, as the leader in automotive displays systems. Visteon Corporation, a Michigan-based automotive supplier, is the only other supplier with a double-digit market share in the segment, claims IHS Markit. The remaining market share leaders in the top five include Panasonic, Denso, and Bosch – a company that's also currently working on developing driverless vehicles – which, when combined, account for more than $6 billion in revenue in 2017.
"The top five primary display system suppliers command more than half of the total automotive display systems market," said Rhodes. "While this is certainly a large portion of revenue for a handful of large players, it still means there is an incredible amount of fragmentation left over offering opportunity for the rest of the supply base – both in today's market and in the foreseeable future based on our forecasts."
IHS Markit believes that only Continental and Visteon will see double-digit market share growth this year, but Rhodes also told Automotive News that to grow in the future, suppliers will have to focus on something more than just entertainment. Like Lincoln, who just revealed an exclusive head-up display on the 2017 Continental.
"There is a shift away from a focus on increased growth in purely entertainment displays," Rhodes told Automotive News. Entertainment displays, such as infotainment and displays located in the center stack will take a back seat to safety-related instrument clusters and head-up displays.
via: Automotive News
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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