Booming automotive display market poised for major expansion as demand for advanced, larger screens soars – Display Daily

IHS Markit predicts a promising future for automotive display suppliers, with the market growing from $11.6 billion in sales in 2017 to more than $21 billion in 2022. This growth has been attributed to rising demand for larger screens and improved user experience in vehicles. infotainment systems. Of course, it’s not just about the growing role of OLED screens, the rise of heads-up displays (HUDs), even as the car cockpit is undergoing major changes. We’ve covered some of these innovations in Jeep and Mercedes Benz.

Source: Continental

A report in the Wall Street Journal discussed how automakers are struggling to make a profit on electric vehicles (EVs) because of expensive batteries and a lack of scale. To bridge the gap in profit margins, auto companies are looking to digital monetization and subscription services as solutions. The offering includes music, entertainment and navigation services, as well as subscriptions to in-car options such as heated seats, increased horsepower and improved handling. Subscriptions for autonomous driving are also expected to be lucrative once the technology goes mainstream.

Currently, digital services represent only about 5% of car revenues. However, as this percentage increases, the battle for control over the car dashboard is expected to intensify, with more automakers possibly deciding to reduce their reliance on smartphone platforms.

  1. Market value estimate: $1.5 trillion by 2030
  2. GM’s revenue forecast: between $20 and $25 billion from software-enabled services by 2030
  3. Stellantis’ prediction: about $22.5 billion by 2030
  4. Accenture Prediction: Digital Services Will Make Up 40% Of Global Automotive Revenue By 2040

GM gets owned with a touch of Android

While some upgrades will be accessible through smartphones and computers, automakers looking to sell directly through the dashboard will have to compete with Apple CarPlay and Android Auto. For years, these two platforms have provided consumers with a familiar and easy-to-use interface for vehicle infotainment systems. However, as car dashboard screens get bigger and technology companies move deeper into vehicle functionality, automakers face the challenge of staying in control of their own revenue generation efforts. As expected, Apple has said it plans for CarPlay to take over the entire dashboard, including the instrument panel, and access various features that automakers are trying to monetize. As tech giants become more involved in the automotive sector, they may disrupt traditional automakers’ attempts to establish direct relationships with customers and sell services through the dashboard.

In response to this competition, General Motors (GM) has decided to stop supporting Android Auto and Apple CarPlay on future EV models, opting instead to develop its own infotainment system, a move that some of his customers on social media was not appreciated. According to the update GM sent to press in late March 2023, its new proprietary infotainment system will debut in select EV models launching this year and expand to future EVs in the coming years. The most affected models are the 2024 Chevrolet Blazer EV, 2024 Chevrolet Equinox EV, 2024 Cadillac Celestiq, and 2025 GMC Sierra EV. Apple CarPlay and Android Auto enabled vehicles include the GMC Hummer EV Truck and 2024 SUV, 2024 Cadillac Lyriq, 2024 Chevrolet Silverado EV, and 2024 Chevrolet Bolt EV and EUV. Internal combustion engine (ICE) vehicles are not currently affected by this decision.

Monetize Eyeballs in cars

It’s hard to say how the best-laid plans of automakers like GM will play out. It’s almost a given that consumers are being asked to buy more and more basic products that are turned into subscription and add-on selling platforms. The car display becomes such a platform if everything goes according to plan. That doesn’t sound like a great idea, but whatever the case, at least for display makers this will open up a lot of extra real estate in car interiors where every eyeball needs to make money. The numbers being projected are huge. The ideas are a bit on the creepy side. The business practices are questionable. However, the dashboards and infotainment systems in the car will be beautiful.

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