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Global Demand and Supply for Automotive Display Systems Expected to Maintain Healthy Growth in 2018, IHS Markit Says

The global demand for automotive display systems is expected to continue
a strong growth path in 2018, according to recent analysis from business
information provider IHS
Markit (Nasdaq: INFO).

According to the latest Automotive
Display Systems Forecasts, OEM production of the three primary
automotive display systems — instrument cluster, center stack and
head-up display systems — is expected to reach 118.5 million units
globally by the end of 2018, representing a 9 percent growth in volume
over 2017. While the volume is growing significantly, the value of the
market is growing even faster. In 2018, IHS Markit estimates just these
three display systems to bring in $13.5 billion in tier-one supplier
revenue, representing a 17 percent growth over 2017.

“In the quest for differentiation, automakers are using displays to
transform vehicle interiors into a futuristic digital user experience
with more pixels in front of consumers than ever before,” said Brian
Rhodes, automotive user experience analyst at IHS Markit. “While
high resolution, large displays previously were reserved for luxury
applications only, declining average selling prices and increasing
consumer demand and production volumes are enabling mass-market car
brands to standardize displays that were optional only a few years ago.”

Demand for more displays in automotive applications is strong, but a
major enabler to this growth comes from the supply chain. Large global
display panel manufacturers in Asia have recently invested heavily in
automotive display panel production in order to continue sales growth as
display markets in other areas have slowed, such as smartphones and
tablet PCs.

According to the latest Automotive
Display Market Tracker by IHS Markit, global shipments of
automotive display panels are set to increase by 11 percent reaching 164
million units in 2018, following an equally strong 9 percent growth in
2017, which had reached 148 million units.

These two IHS Markit forecasts are fundamentally linked, but also differ
in that the shipment forecasts include additional volumes, applications
and factors that the current OEM production-side forecasts do not.

“As vehicles adopt more technology, more new display use-cases become
viable and new display applications are born,” said Hiroshi
Hayase, senior director of small and medium displays at IHS Markit.
“In addition to the strong growth in the primary display market, we also
expect strong growth in display mirrors, rear seat entertainment and
even in aftermarket systems as buyers clamor for more digital
interfaces.”

As an example, global display shipments for rearview mirror applications
are forecast to soar 52 percent in 2018 to 1.6 million units, beyond the
1.0-million-unit mark set just last year. While automakers are keenly
aware of the growing demand in this sector, the aftermarket mirror
manufacturers are responding quicker to the trend and represent a
majority of today’s global production.

The IHS Markit Automotive
Display Systems Forecasts provide customers with demand-side
monthly updates to automotive instrument cluster, center stack display
and head-up display system forecasts, tracked globally to the segment,
OEM, brand, model, platform, and program. Coverage of tier-one suppliers
and key technical characteristics like display system size, type, touch,
orientation and more enabling a precise view of the volumes, technology
and revenue market shares in the industry are also included. Meanwhile,
the Automotive
Display Market Tracker by IHS Markit contains supply-side
quarterly updates of automotive display shipments and revenues by
application, size, resolution and technology. It also provides supply
chain information between tier-two display suppliers and the rest of the
supply chain.

About IHS Markit (www.ihsmarkit.com)

IHS Markit (Nasdaq: INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 business and government customers, including 80 percent
of the Fortune Global 500 and the world’s leading financial
institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its
affiliates. All other company and product names may be trademarks of
their respective owners © 2018 IHS Markit Ltd. All rights reserved.

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