Report Forecasts Automotive Display Market Will Top 16 Trillion Won in 2027

The automotive display market is expected to grow at an average annual rate of 7.8 percent and exceed 16 trillion won in 2027, according to a new report.

The Korea Display Industry Association forecast in its Automotive Display Value Chain Analysis Report on Aug. 2 that the automotive display market will grow at an average annual rate of about 7.8 percent, from US$8.86 billion in 2022 to US$12.63 billion in 2027. Automotive LCDs accounted for 97.2 percent of the automotive display market in 2022, but are currently on the decline due to growing demand for large and high-definition displays, the report said. On the other hand, the share of OLED displays is expected to expand from 2.8 percent in 2022 to 17.2 percent in 2027.

All four Northeast Asian countries – China (38.4 percent), Taiwan (33.7 percent), Japan (14.8 percent), and South Korea (13.1 percent) – are involved in automotive LCD production. However, South Korean companies are reducing the share of LCDs and focusing on OLED displays that can realize new form factors such as slidable displays, which are required for premium cars. South Korea has a 93 percent market share of the automotive OLED display market, with the remaining 7 percent share held by China. That is to say, South Korea is leading the way in the automotive OLED display market. Of course, China ramping up its market penetration by expanding its OLED display investment is rapidly expanding its share from 0 percent in 2021 to 7.1 percent in 2022, so there is a possibility that competition will intensify in the automotive OLED display market in the future.

Meanwhile, displays are undergoing a new makeover due to changing market demand. In particular, the automotive industry is demanding displays with brightness levels that exceed sunlight reflection (500-1000 nits), which can function normally in spite of extreme temperature changes (-30℃ to 70℃), be freely designed, and give high definition.

OLED displays are currently the most suitable to meet these requirements. This is why the automotive industry is expanding the adoption of OLED displays in premium models.

The display industry is expected to further expand its automotive display business. This is because the roles of in-vehicle displays are becoming more important with the advancement of electronics technology such as electric vehicles and autonomous driving. Displays in automobiles are used as interfaces to control automobile parts and interior and exterior equipment beyond simple visual functions, so it is necessary to consider convergence between automobile parts and display technologies through the realization of two mature technologies.