The gist of it: increasing digitization of cars and the rise of connected car sales offer ample opportunities for display manufacturers to develop and supply advanced displays that enhance the in-vehicle experience, support advanced features, and enable seamless and faster connectivity.
Counterpoint’s research highlights the increasing digitization of cars as the connected car market continues its upward trajectory, with global sales growing by 12% YoY in 2022. The share of connected cars in overall car sales has exceeded 50%, led by the US, China, and Europe, which accounted for nearly 80% of the total connected car sales.
New facelift versions of older models with upgraded 4G connectivity and new features, including remote lock/unlock, climate control, and location tracking, have contributed to the rise in connected car penetration. The top five automotive groups accounted for nearly half of the connected cars sold in 2022, with Volkswagen Group leading in sales volume, closely followed by Toyota Group. By 2030, more than 90% of connected cars sold are expected to have embedded 5G connectivity as the industry moves towards software-defined vehicles and autonomy, with connected car sales anticipated to grow at a CAGR of 13% between 2022 and 2030.
The increasing penetration of connected cars offers significant opportunities for display manufacturers. As cars become more connected and digitized, there will be an increasing demand for advanced displays to provide users with a seamless and engaging in-vehicle experience. Display manufacturers can leverage this trend by developing and supplying high-quality displays that provide clear and vibrant visuals, are responsive, and support advanced features such as touch input, gesture control, and voice recognition.
Furthermore, as the industry moves towards electrification, software-defined vehicles, and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. This presents an opportunity for display manufacturers to develop displays that support 5G connectivity, enabling drivers to access high-speed internet and advanced connectivity features on the go.
Honda and Digital Car Platforms
A great example of the way the digitization of automotive is evolving to turn cars into proprietary software platforms is Honda’s latest announcement. The company has announced that its first e:Architecture-based electric vehicle will debut in 2025, a year ahead of schedule. The e:Architecture platform places significant emphasis on software and over-the-air updates, in a similar fashion to Tesla. The vehicle will incorporate a new, in-house operating system, enabling continuous improvement and expansion of vehicle functions and services post-purchase. Honda has relied on General Motors to develop its electric vehicles in North America, but its first e:Architecture-based model marks a shift towards in-house development. The company has stated that its initial offering will be a mid- to large-size electric vehicle, with no word yet on any plans for smaller electric models in North America.
Technical details of the e:Architecture platform remain scarce, but it is expected to offer advanced connectivity features and enhanced driving performance. Honda has stated that the platform will prioritize range, efficiency, and flexibility in terms of powertrain options. It will also feature a modular design that can be customized for different vehicle types and sizes. Be that as it may, cars are being turned into computing products and it just happens to be that they are mobile, they use wheels instead of computer bags, and they have a lot of different ways that their displays can be configured. It’s not that much of a stretch to imagine that every windshield, and pane of glass, every back of a seat, maybe every surface, is not a potential display opportunity.
