Rise of Electric Vehicles
With over $225 billion pledged from car manufacturers into the electric vehicle market already, the growth of the industry cannot be overstated. Lithium-ion batteries continue to get denser and less expensive, and as large scale car companies realize that internal combustion engines are not a viable means to sell vehicles in the future, the emphasis on creating efficient, slick, and consumer-friendly electric vehicles grows every day. In fact, there will be a projected 500 different models of electric vehicles in the market by as early as 2022. Especially as state-by-state environmental regulation continues to get stricter as climate change becomes a larger threat, battery-powered electric vehicles will continue to see higher demand. Several different governments already provide subsidies for purchasing and using environmentally friendly cars, specifically, electric.
With the overwhelming majority of electric vehicles most likely being equipped with smart displays, the two industries are inextricably tied to each other. So, it can be surmised that as the electric vehicle industry continues to grow, the smart display market should certainly follow. Especially as cars become autonomous and semi-autonomous, the demand for smart displays in the cars will rise. In fact, with the autonomous car market projected to grow from $23.33 billion as it currently stands in 2020 to $37.22 billion by 2023 at a compound annual growth rate of 16.84%, smart displays again will grow with it.
Projections for the Automotive Smart Display Market
In 2020, the automotive smart display market is estimated to be worth around $7.2 billion. Given the many different factors which play into the growth of this market, it is projected to be worth an impressive $10.9 billion by 2025. Over $3 billion of market growth within five years translates to a compound annual growth rate of 8.8%. A large portion of this increase in market size can be attributed to the Asia-Pacific region, where major players in the industry, such as Panasonic, Yazaki, and Nippon Seiki, are headquartered. When looking at Nippon Seiki, the company is set to take in ¥239.5 billion ($2.27 billion) in 2020. There will be a slight dip following, but the company is set to recover and continue to prosper into the future. As for Panasonic, the company saw declines in sales due to COVID-19; however, even after accounting for that, Panasonic reported $3.554 billion in quarterly profits. Smaller companies such as Alps Alpine Co., who also are in the business of automotive smart displays, will end 2020 with around ¥810.57 billion ($7.7 billion). When taking all of this into consideration, multiple in-region factors must also be acknowledged, especially the decrease in price for smart displays, the implementation of new technologies, and the overall rise of luxury vehicles that utilize smart displays.
The world is rapidly changing the way personal transportation is used. As the demand for more technology-minded vehicles and energy-efficient vehicles becomes larger, the smart display market for automobiles grows with it. Electric vehicles are the future, and along with nearly every electric vehicle available to the public comes a smart display. The exciting new and improved technological innovations being created in Japan by established companies such as Panasonic and Nippon Seiki, as well as smaller groups such as Alps Alpine Co., just scratches the surface for what will be an industry worth tens of billions of dollars in the near future.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.