Product differentiation will be key as customer expectations for integrated digital lifestyles compel OEMs to develop larger, more advanced in-vehicle infotainment displays.
The European passenger vehicle market is experiencing significant transformation, driven by the demand for seamless connectivity, personalized experiences, and enhanced safety features. This convergence of automotive, technology, and entertainment is pushing the evolution of larger, more sophisticated in-car displays. Frost & Sullivan projects the European in-vehicle display market to reach $5.76 billion by 2030, highlighting its substantial growth potential.
Customer expectations for integrated digital lifestyles are compelling OEMs to develop larger, more advanced in-vehicle infotainment displays. Accordingly, a major trend has been the shift towards larger displays that support smartphone integration, multiple features, and advanced functionality. At present, larger displays are linked to premium OEMs and premium segment vehicles. However, the increased adoption of larger displays will continue during the next 5 to 10 years because of technological advances, evolving consumer preferences, and trends that drive innovation in automotive infotainment and connectivity systems. Mass market OEMs are rapidly shifting towards larger screens as they scramble to stay competitive.
To learn more, please access: Growth Opportunities in the European Passenger Vehicle In-vehicle Display Industry, Growth Opportunities in the North American Automotive Audio Sector, 2023-2030, or contact sathyanarayanak@frost.com for information on a private briefing.
A Shift to Larger Displays
By 2030, smaller displays (less than 5 inches) are expected to become obsolete, while displays between 10 and 15 inches will dominate the market. While many premium OEMs in Europe now offer display units larger than 10 inches as standard, mass market OEMs are also swiftly transitioning to larger portrait-oriented screens at an accelerated pace. As a result, revenues from 5 to 10 inch screens will decline, while those from 10 to 15 inch displays will increase significantly and are projected to account for 62% of the market by 2030.
The market will also see a rise in the adoption of screens larger than 15 inches, particularly in premium segments. This trend is driven by the growing popularity of electric vehicles (EVs) and the introduction of technologically advanced models. Segment A/B vehicles are expected to experience the fastest growth in displays larger than 10 inches, fueled by the launch of numerous subcompact, electrified SUVs.
Leading OEMs like BMW, Volkswagen, and Mercedes-Benz are setting industry standards by offering average display sizes above 10 inches across most of their vehicle lineups. Conversely, OEM groups such as Stellantis, Toyota, and Renault-Nissan-Mitsubishi still include smaller displays in some models but are moving towards eliminating monochrome displays by 2030.
Key players in the supplier category, including Continental, Bosch, Visteon, and Panasonic, are driving innovation and revenue generation in the in-vehicle display market. Continental excels in in-vehicle networking and creating seamless user experiences, while Panasonic boasts a strong portfolio in advanced infotainment systems. Visteon focuses on intuitive interfaces and customizable solutions, and Harman leverages its audio expertise to develop integrated display and audio solutions.
Our Perspective
To differentiate between premium and mass-market offerings, OEMs need to strategically integrate large displays, enhancing the in-car experience with features such as touchscreens, gesture control, and haptic feedback. By adopting a modular design approach, OEMs can scale displays according to vehicle segments, offering larger screens for premium cars and smaller, user-friendly displays for mass-market models.
Automakers should also collaborate with technology firms to incorporate functionalities such as built-in games, live news, video calls, and streaming services. Such partnerships will ensure the provision of high-definition displays capable of supporting advanced features without compromising driver safety and ergonomics.
As customer demands continue to evolve, automakers must integrate larger and more sophisticated in-vehicle displays to attract tech-savvy consumers and differentiate their products in a competitive market. By focusing on strategic placement and design, and collaborating with content providers, OEMs can offer a wide range of entertainment options, creating a compelling in-car experience that meets the needs of modern consumers.
With inputs from Amrita Shetty, Senior Manager, Communications & Content – Mobility
