In-vehicle display market will exceed 91 billion yuan in 2027

According to WitDisplay, the Korean display industry is looking for new ways in the electronics industry. As the markets for smartphones and TVs, which are its main businesses, have reached saturation, display companies seem to be focusing on the automotive display industry. With the development of electric vehicles and self-driving cars in the future, the electronics industry is expected to become a new growth point for the display industry.

According to the Korea Display Industry Association (KIDA) forecast on the 16th, the global in-vehicle display market is expected to grow to US$12.63 billion (RMB 91.43488 billion) by 2027. Following the rapid growth trend, the global automotive display market is expected to grow at an average annual rate of 7.8%.

LG Electronics' electronics business is regarded as the "goose that lays golden eggs". LG Electronics' electronics business officially began in 2013 with the establishment of the electronics business department. Foreseeing that the automotive industry will shift to electrification and autonomous driving, the company spared no effort to make bold investments and recruit talents. LG Electronics' electronics business was once an "ugly duckling" that suffered losses for several consecutive years, but it turned losses into profits in 2022, establishing its position as the "goose that lays golden eggs".

Through mergers and acquisitions (M&A) over the past decade, LG Electronics alone has formed a triangle structure including "Vehicle Infotainment (Information + Entertainment) - Electric Vehicle Powertrain (LG Magna e-Powertrain) - Vehicle Lighting System (ZKW)", with sales exceeding 10 trillion won in 2023, and the accumulated order balance in the first half of this year is expected to exceed 100 trillion won.

In particular, LG Display stands out in the automotive organic light-emitting diode (OLED) market. Last year, LG Display was the leader in the high-end automotive display segment, which consists of OLED and high-end (LTPS low-temperature polycrystalline silicon) liquid crystal displays (LCD), with a market share of 26.2%. The second and third places were Japanese companies Sharp (22.6%) and Japan Display (17.0%), with a gap of 4-9%.

Samsung Electronics is also strengthening its electronics business. In particular, Samsung Electronics is focusing on the automotive infotainment sector and accelerating business development through its subsidiary Harman. Harman is a leading company in the electronic components market, including the world's number one digital cockpit and the world's number one car audio company, with sales of 14.39 trillion won and operating profit of 1.17 trillion won last year. This is the first time this year that Harman's annual operating profit has exceeded 1 trillion won.

Samsung Display is also actively expanding its electronics business. Samsung Display has been expanding its market share by attracting global automakers such as Hyundai Motor Company, Ferrari, BMW and Audi as customers. Recently, General Motors (GM) Chairman Mary Barra visited Samsung Electronics Seocho Headquarters and held talks with Samsung Display General Manager Choi Joo-sun and other management.

A display industry insider said, "In the future, the electronics business will become the core business of the display industry, but because Chinese companies are afraid of catching up with technological advances, the government must actively promote the industry with strategic support."