Display Industry Turning to Cars... Accelerating Technology Amid Chinese Pursuit

Rapid Growth in Vehicle Displays... Market Size Expected to Exceed 13 Trillion Won in 2024
China Starts Targeting Vehicle Displays
LG Display Expands Market Share with Displays Over 10 Inches

Photo by Asia Economy DB

[Asia Economy Reporter Han Yeju] As consumer sentiment weakens due to the economic downturn and global demand for large TVs slows, the domestic display industry is shifting its investment focus to automotive displays. This is because the easing of semiconductor supply shortages has normalized vehicle production, leading to a corresponding increase in demand for automotive displays. However, intense competition from Chinese companies in this market is raising industry tensions.

According to industry sources on the 24th, there has recently been a global trend toward normalizing vehicle production following the easing of the automotive semiconductor supply shortage. The recovery in vehicle sales is also bringing a positive wind to the automotive display market. Market research firm Omdia recently significantly raised its forecast for the automotive display market size next year from $8.8 billion to $9.5 billion. It is expected to reach $10.5 billion in 2024, surpassing $10 billion (approximately 13.1 trillion KRW) for the first time.

The expansion of autonomous vehicles, which has increased the use of displays inside cars, is also cited as a factor behind the market growth. As cars transform from mere transportation means into living spaces, displays that allow access to various content such as games and videos have become important. The industry explains that the display area per vehicle could increase nearly tenfold. Automotive displays are more expensive than mobile displays, resulting in higher profitability. This is because they are safety-critical devices directly related to driver safety, thus subject to stringent safety standards.

The problem is that Chinese display panel manufacturers are also increasing their production of automotive displays, causing a sense of crisis. BOE has established an automotive display production base in Chengdu, China, and recently started operations. It produces display modules ranging from 5 to 48 inches. The initial investment was 2.5 billion yuan, but an additional 7.5 billion yuan will be invested to increase the total investment to 10 billion yuan (approximately 1.965 trillion KRW). Product shipments are scheduled for December, with an annual production capacity of 15 million units.

Tianma recently launched a 9-inch automotive display and produces dashboards, automotive information display (CID) systems, head-up displays (HUD), and rearview mirrors. Sources added that Tianma has also expanded its production capacity for mid- to large-sized automotive display products. Additionally, Hisense, Nationstar, and Optoelectronics have reportedly entered the automotive display market.

Currently, the automotive display market is led by South Korea, with LG Display ranked number one in the industry. According to Omdia, in the first quarter of this year, LG Display held a 19.7% market share in the automotive display market for displays 10 inches and larger, ranking first. Chinese BOE (16.3%) and Japan’s Sharp (14.2%) ranked second and third, respectively.

In response to the Chinese pursuit, LG Display is reportedly planning to expand its market share. The company aims to increase its share in the premium market for displays 10 inches and larger to over 30% in sales by 2025.

This content was produced with the assistance of AI translation services.