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Digitimes Research: Panel makers increasingly optimstic about vehicle display segment

Tony Huang, DIGITIMES Research, Taipei

Panel makers are expressing growing optimism for the vehicle display segment due to increased demand for smart and connected cars, according to Digitimes Research.

Currently vehicle displays are primarily found in high-end units but trends in the market show that entry-level and mid-range cars will also be incorporating the technology in newer released units.

As many as six displays found in vehicles are being used for dashboard, navigation and backseat entertainment purposes throughout higher-end vehicles already, which will extend into other car divisions in the future.

Pricing for vehicle displays is on the decline and production technology for the segment is improving, which means that more vendors are likely to incorporate vehicle displays following connectivity trends in the car and other vehicle segments.

Panel makers also believe that profits from the segment will remain relatively high compared with other segments such as the handset market, which makers are now seeing declining profit margins at around 5-10%.

Innolux, AU Optronics (AUO), LG Display and Sharp are all competing makers in the segement and expect steady demand in the first quarter of 2016, added Digitimes Research.

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