In-Cell Touch TFT LCD Displays Set to Dominate Automotive Markets

Omdia is reporting that despite a slowdown in the growth of touch display shipments for automotive central stack displays (CSD), shipments of in-cell touch TFT LCD displays continue to see an uptick, with 26.2 million units shipped in 2023. These in-cell touch displays, which integrate touch sensors within the display panel, now make up 35.1% of the market share, a figure projected to exceed 50% by 2025.

Source: Omdia

Panel manufacturers are increasingly advocating for these in-cell touch displays due to their integration simplicity and the growing average selling prices (ASPs). The technology has already secured a significant foothold in the smartphone and tablet PC markets, with shipment shares reaching 55.2% and 45.1%, respectively, in 2023. In the automotive sector, particularly in CSD applications, in-cell touch displays have seen a notable increase in market penetration, from 11.7% in 2021 to 35.1% in 2023.

This surge is pressuring the market for projected capacitive touch displays, which are designed with separate touch sensors and display components, and had dominated the market with an 86% share in 2021. Although these capacitive touch displays still fulfill automotive requirements, the competitive edge is tilting in favor of in-cell touch technology. Factors such as a simplified supply chain, sufficient display production, and the scale of panel makers’ operations, along with the rising trend of smart cabins in vehicles, are driving this growth.

The demand for larger display sizes, particularly those exceeding 10 inches, is also on the rise, attributed to the smart cabin trend. In 2021, larger displays accounted for 37% of all touch display shipments, a figure that expanded to 58.5% in 2023. Specifically, for in-cell touch TFT LCD displays, the majority were larger than 10 inches, representing 95.7% of shipments in this category for 2023.

Omdia’s Senior Research Manager for Displays, Calvin Hsieh, noted that the automotive sector is becoming the new focus for panel manufacturers as the market for smartphones and tablet PCs matures. Total touch display shipments for automotive applications reached 74.6 million units in 2023. Although growth in 2024 is predicted to slow, the shift towards in-cell TFT LCD displays is expected to continue, with their market share crossing 50% by 2025.