North America Automotive Display Market - Growth, Trends, and Forecasts (2022 - 2027)

The North America Automotive Display Market was valued USD 4,969.10 million in 2021, and is expected to reach USD 8593.8 million registering CAGR of around 9.56% during the forecast period, 2022 - 2027.

Alhtough during Covid-19, demand for automotive displays witness a steep fall amid the reduce automotive sales and production across the United States and Canada. Considering the fact that, automotive display demand is deeply linked with automotive sales including passenger and commercial vehicles, Noth America showcased shrinking in demand during Q121 to Q421. Although after Q421, demand for automotive resumed globally and production houses in the United States also began at a faster pace.

Although, over the medium term, automotive sales in United States and Canada is showcasing prominent growth which is quite good sign for automotive display demand in the North America. With overall automotive navigation and connectivity characterizing the cars of this generation, automotive visualization technologies are becoming the most vital components of in-vehicle interactions. As a result, the incorporation of interactive displays has become a key feature of the vehicle manufacturing processes among a few prominent automakers like General Motors and Tesla.

In the last few years, the larger display in the vehicle interior system has improved tremendously. Many players have introduced their vehicles with big screens in the market. For intsnace, in 2021, S-Class from Mercedes packed with screens (the central unit will be a 12.8-inch OLED screen with haptic feedback). The new car has replaced a large number of physical buttons present in the past version with controls that are now in the screens all around the cabin. This screen, which has superior processing power, special pixels for extreme clarity, and compatibility with swipes, gestures, and voice commands, also has biometric security. Also, Mercedes owns the largest 56-inch-wide curved screen in its Mercedes-Benz Hypersceen.

Furthermore, the growing trend of connectivity in vehicles, augmented reality, with the increased integration of smartphones and tablets with in-vehicle entertainment and information systems, propel the demand for advanced display systems. Vehicle interiors are revolutionizing by providing the futuristic digital user experience in front of drivers. The number of displays in vehicles has been continuously increasing, as OEMs are always trying to stay ahead from their competitors to make their cars more attractive with advanced instrument clusters.

The region is one of the largest automotive markets worldwide, owing to its large-scale domestic production, with the major global players having their production plants in the United States. There are thirteen major car manufacturers in the United States. Considering these ongoing development in a factors, demand for automotive display is expected to witness a positive growth rate during the forecast period.

Key Market Trends

Head-Up Display Segment of Market to Play Key role During the Forecast Period

The North American market is the most technology-sensitive market, and HUD systems are expected to witness rapid demand in the region. The higher growth rates for HUDs in North America are likely to be driven by the increasing sales of SUVs and luxury cars.

Over the past three years, passenger cars with HUD displays were unveiled at various exhibitions, but its penetration rate is low as compared to other display systems in consumer models. Many vehicles and display system manufacturers have been developing new HUD display systems equipped with more safety information features.

Most of the cars launched in the market today are well equipped with a head-up display to improve the user experience and driving comfort. Demand for head-up displays globally has been steadily increasing, owing to the incorporation in luxury vehicles, electric vehicles, and other passenger segments by automakers, such as Audi, BMW, Volkswagen, and other luxury automobile brands. For instance,

• In July 2022, Skoda EnyaqEV Camper is making its way to enter the United States market. Skoda Enyaq iV 80 FestEValcamper edition has a highly practical yet compact camping setup that is entirely accommodated inside its boot. The model is equipped with a heads-up display with augmented reality which can also come as an advantage on long road trips.
• In August 2022, GMC which is an American automobile manufacturer of General Motors unveiled its 2023 GMC Canyon for Middle East Market. The new automotive shall be equipped with an exclusive head-up display and 11 inches fully digital instrument cluster.

The augmented reality head-up display remains the most promising segment under the market growth to register the highest CAGR. In the near future augmented reality head-up displays will help to make driving even more comfortable and safe. This generation of HUDs supplements the exterior view of the traffic conditions in front of the vehicle with virtual information for the driver. Considering these factors, demand for head-up display shall equally fuel the growth of automotive displays in North America during the forecast period.

United States Likely to Occupy Significant Share in the Market

The United States is the bedrock for the automotive sector in North America. Demand for automotive is consistently witnessing a steady increase thus making a strong demand for the automotive display market.

Moreover, during the 2020 Covid-19 United States automotive industry witnessed a steep decline of 27.9% in its cars segment sales. Although with ease in supply chain and logistics activities sooner after Q1 2021, industry get back again towards recovery phase and during FY21 the United States automotive sales stood at 15,560,740 units. During Q1 2022 automotive sales stood at around 32,21,014 units. January 2022 sales witnessed a decline of 8.7% compared to January 2021. Key challenges automakers facing are Semiconductor shortage, higher inflation, and expenses for restructuring thus finding a way to get around.

Although, as of now the automotive sector of the United States has again regained its growth phase soon after Q42021, the country is witnessing elevated sales figures in its auto sector. For instance, In April 2022, United States new vehicle sales were reported at 1,256, 224 units with an 18% decline compared to April 2021 figures. In addition, during April, passenger car sales dropped down to 23.3% reporting 278,827 units, while SUV and truck sales also decreased 16.3% to 977,397 units. Q1 2022, has been less favourable for the United States automotive sector.

Manufacturers are introducing a touchscreen infotainment system which has now completely changed the in-house cabin experience. Today, after several new advancements seen by touch screen infotainment systems, manufacturers have introduced predictive display features enabled with AI that shall follow the instruction without actually touching the screen. This has improved drivers' comfort and ease thus gaining momentum. For instance:

• In August 2022, BMW brought its refreshed X3 model to the Philippines which was launched in late 2017 globally. In addition, the X3 is equipped with a freestanding centrally controlled display touchscreen which is measuring about 10.25 inches. The display performs various functions as the infotainment display and can be easily controlled via the vehicle's touch controller.

Automakers are experimenting with the size and quantity of screens, as the major models, which will hit the market in coming years, have been designed with a greater number of screens. For instance, In June 2022, Apple embraces the Mercedes Benz car for expanding the size of its infotainment system. In addition, the company asked to install a souped-up version of Car play near the infotainment system to reduce driver distraction. Considering this development and increased vehicle sales in the United States, demand for automotive displays is expected to witness a high growth rate during the forecast period.

Competitive Landscape

The North American automotive display market is moderately consolidated due to the presence of many local and global players, such as LG Electronics, Visteon Corporation, and Robert Bosch GmbH. The market is transforming with the evolution of technologies. However, conventional technology will continue to hold a significant share as new technologies are right now in the concept phase in the next two-three years.

Although, display manufacturing companies are expanding their market presence and increasing their R&D projects to provide the best display experience to the car owner. The company has a supply agreement with OEM for maintaining a seamless supply for display. For instance:

• In 2022, Panasonic Automotive System Ltd. supplied Windshield head-up display to Nissan Pathfinder and Nissan Infiniti QX60 under their supply agreement.
• In 2022, Rivian launched its new electric pickup truck considering all the requirements of key consumers. This newly launched pickup truck is equipped with decorated ash wood in dash infotainment system board. The system comprises of 12.3 landscape-oriented inbuilt screen.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support