Automotive Displays Forecast to Reach $2.4 Billion in 2015 Despite Turmoil in Automotive Market; Second-Largest Application for Small/Medium Displays

Sort Date: 03162009

AUSTIN, TEXAS, March 16, 2009—While automobile sales have fallen dramatically due to the recession, the automotive display market remains one of the fastest-growing segments for small/medium displays in terms of both shipments and revenue—ranked second behind mobile phone main displays. According to DisplaySearch’s 2009 Automotive Displays Report, the market is forecast to grow from 175.3 million units and revenues of $1.77 billion in 2009, to 231.1 million units and revenues of $2.40 billion in 2015.

“With January 2009 vehicle production in North America down 59.5% Y/Y, there’s no doubt that the automotive market has been hit hard by the recession due to weak economies,” noted Chris Crotty, DisplaySearch’s Director of Small & Medium Displays Research. “Despite this, display-centric electronics in automobiles will continue to grow over the long term, with applications such as navigation devices, as well as rear-seat and in-console panel monitors, becoming more prevalent.”

The automotive display market has two key segments: automotive monitors used for in-console navigation, controls and rear-seat entertainment, as well as other—typically smaller—displays used as indicators, dials and gauges. With the demand for displaying information and entertainment increasing, and with automobile makers searching for profitable features, automotive monitors are the growth driver for this market.

Automotive monitors will grow from 16.6 million units and revenues of $1.03 billion in 2009, to 34.4 million units and revenues of $1.56 billion in 2015. Growth for automotive monitors is being strengthened by demand for in-console displays used for navigation and other operations. DisplaySearch forecasts that 7.0” panels for automotive monitors will gain the most unit share from 2009–2015 with an increase from 40.5% to 46.2% share. They will also gain the most revenue share during the same period, with an increase from 45.7% to 52.2%. The growth in automotive monitors has weakened demand for portable navigation devices, which DisplaySearch forecasts will decline at a 3.9% CAGR from 2009 to 2015.

Figure 1: Shipments of Automotive Displays by Application

Source: DisplaySearch 2009 Automotive Displays Report

Automotive monitors are all active-matrix LCDs, dominated by a-Si TFT technology, and are the largest size panels used in automobiles, with two-thirds of 2008 shipments larger than 6”. The dominant application for monitors is navigation. DisplaySearch forecasts that 41.1% of automotive monitors will have touch screens in 2009.

The automotive monitor supply base is quite concentrated with Sharp and TMDisplay accounting for two-thirds of the unit shipments in recent years. However, Optrex and Epson dramatically increased shipments in 2008. Automotive monitor suppliers sell into a relatively concentrated market, with Panasonic, Siemens/VDO, Pioneer, Fujitsu-TEN and Alpine accounting for more than half of unit shipments in recent quarters.

Figure 2: Automotive Monitor Unit Share by Supplier, Q1'08-Q3'08

Source: DisplaySearch 2009 Automotive Displays Report

While a-Si TFT LCD accounts for more than half of the automotive display market in terms of revenues, TN LCD and monochrome STN LCD together make up more than 80% of units. These technologies serve a wide variety of indicator functions, replacing mechanical gauges and providing time, temperature and other non-critical information.

Based on extensive quarterly surveys of automotive display suppliers, the DisplaySearch Automotive Displays Report features

• Exclusive unit, revenue and ASP forecasts for automotive monitors, displays, touch panels and portable navigation devices
• Forecast breakdowns by technology, size, resolution and panel maker through 2015
• Product roadmaps of automotive displays through 2009
• Product and technology trends impacting the auto industry

The report is available now. For more information, contact Carl Holec at +1.512.687.1505 or sales@displaysearch.com or contact your regional DisplaySearch office in China, Europe, Japan, Korea or Taiwan.