As autonomous driving technology continues to advance, in-vehicle infotainment systems are becoming increasingly sophisticated, leading to a surge in demand for larger and higher-resolution displays in automobiles. A recent report by the Korea Display Industry Association (KDIA) sheds light on the dynamics of the automotive display value chain and the global competitiveness analysis data, indicating a promising future for the industry.
According to the report, the global automotive display market is projected to grow at a robust average annual rate of 7.8% from $8.86 billion in 2022 to an estimated $12.63 billion by 2027. The increase in demand for advanced infotainment systems and the rising popularity of autonomous driving technology are the primary drivers behind this growth.
One of the key trends identified in the report is the increasing adoption of OLED displays in vehicles. Last year, OLEDs accounted for a mere 2.8% of the market share, but this is expected to soar to 17.2% by 2027. As demand for large and high-definition displays rises, the market share of LCDs is expected to gradually decrease, although they still hold the lion’s share with 97.2% as of last year.
The report also examined the market share of countries in the vehicle display industry. As of the latest data, China held the largest share at 38.4%, followed by Taiwan (33.7%), Japan (14.8%), and Korea (13.1%). All four Northeast Asian countries are actively participating in vehicle LCD production. Notably, Korea dominates the automotive OLED market with a 93% market share, while China holds the remaining 7%.
Looking ahead, KDIA predicts that Korean companies will maintain their market dominance in the premium segment by focusing on OLED displays and reducing the reliance on LCDs. However, they caution about the potential intensifying competition from China, which is aggressively expanding its market penetration through increased investments in OLED. According to Omdia, global automotive OLED display panel shipments are expected to grow significantly in the coming years. The forecast suggests an average annual growth rate of 45%, reaching over 5 million units in 2026 and 9 million units in 2027.
| Category | 2017 | 2020 | 2022 | 2023 | YoY |
|---|---|---|---|---|---|
| Center Stack Display | 5,333 | 23,047 | 47,497 | 53,806 | 13.3% |
| Importance (%) | 7.3% | 29.7% | 50.4% | 7.3% | |
| Instrument Cluster | 3,704 | 8,101 | 19,823 | 23,234 | 17.2% |
| Importance (%) | 6.4% | 16.1% | 31.2% | 34.2% | |
| Automobile monitor | 740 | 2,769 | 3,321 | 3,569 | 7.5% |
| Importance (%) | 5.8% | 18.7% | 15.5% | 16.9% |
| 2020 | 2021 | 2022 | 2023 | YoY | |
|---|---|---|---|---|---|
| Center Stack Display | 27,050 | 90,200 | 211,050 | 434,147 | 105.7% |
| OLED share (%) | 0.6% | 1.9% | 8.0% | 4.2% | |
| Instrument Cluster | 16,500 | 31,500 | 24,250 | 21,070 | -13.1% |
| OLED share (%) | 0.8% | 1.4% | 1.0% | 0.8% | |
| Passenger Display | – | 2,200 | 8,400 | 24,283 | 89.1% |
| OLED share (%) | 10.7% | 31.1% | 46.3% |
The significance of OLED displays is evident in their various applications within vehicles. Currently, OLEDs are predominantly used for entertainment purposes. In terms of sales, OLEDs are expected to account for 8.0% of center stack displays and a remarkable 46.3% of passenger displays this year.
With the increasing demand for larger displays, the association also forecasts a 13.3% increase in shipments of 10-inch or larger panels for center stack displays, from 47.49 million units last year to 53.8 million units this year.
In this competitive landscape, both Samsung Display and LG Display are vying for a larger market share in the OLED market for vehicles. Samsung has been successful in securing global brand-oriented customers like Ferrari and BMW, which has contributed to their market share growth.
