As the pandemic has eased, the global automotive market is picking up momentum, and it is estimated that the global shipments of automotive panels will exceed 200 million units in 2023. With the continuous demand for size enlargement and specification improvement in automotive panels, the adoption of TDDI architecture is becoming more prevalent, and it is expected that TDDI will gradually become the mainstream for automotive panels.

On the other hand, AMOLED panels have started to have opportunities for adoption in emerging electric vehicles and some high-end car models. However, their adoption has been slow due to potential issues with reliability, lifespan, and brightness. Currently, the overall penetration rate for AMOLED panels in the automotive sector is estimated to reach 6% by 2026.

Can Panel Manufacturers Replace Traditional Tier 1 Players and Directly Serve Automakers?

As traditional internal combustion engine vehicles transition to electric vehicles and the level of in-car electronics continues to rise, coupled with the development of autonomous driving technologies, the demand for automotive displays is constantly expanding. The integration of digital display panels with touch functionality is gradually becoming mainstream, and panel sizes are increasing, moving towards more integrated designs. Specifications such as resolution, wide viewing angles, and high refresh rates, as well as unique designs, are becoming focal points. Currently, display panel specifications are moving towards LTPS LCD panels, which offer larger sizes, superior display performance, and better energy efficiency.

Looking at the market conditions, after the outbreak of the pandemic in 2020, the demand for automotive panels declined, but it gradually recovered in 2021 and 2022. However, there is still an oversupply situation, and it is estimated that there will be a slight growth of 5.1% to reach 205 million units in 2023. In terms of shipment scale, China’s panel shipments maintain the best position with a share of over 40%, while Japanese panel manufacturers have been squeezed by Chinese counterparts, reducing their share to about 20%. Taiwan’s panel manufacturers account for approximately 21%, and Korean panel manufacturers represent 8%.

The traditional shipment model involves Tier 1 players contracting with car manufacturers for related validation, assembly, and supply chain management roles, and then subcontracting Tier 2 panel suppliers. With the transformation of the automotive industry and the semiconductor component shortages in the past few years, as well as the increased requirements for interior design in vehicles, car manufacturers are starting to seek better control over the supply chain. As a result, panel manufacturers may replace Tier 1 players and directly supply to automakers, and Tier 1 suppliers will face competition from panel manufacturers.

The Automotive TDDI Architecture Has Cost Advantages

In the early days, LCD automotive panels mainly used external touch solutions, with car-use DDI and independent touch ICs on the IC architecture. However, as panel sizes increased, the number of ICs used also increased, leading to higher costs. Therefore, the TDDI architecture became a new development direction.

TDDI is commonly used for panels up to 30 inches in size. A single TDDI solution can be used for 20-inch panels, while for 20-30 inch panels, a TDDI-cascade solution with approximately 2-3 TDDI-cascade architectures is often used. Panels larger than 30 inches use the LTDI (Local TDDI) structure.

New Display Technology Awaits Automotive Certification; Significant Growth Expected after 2025

AMOLED is mostly used in high-end car models or stylish new electric vehicles, but its rapid development is hindered by limitations in brightness, panel lifespan, and reliability. In comparison, LCDs with MiniLED BLU architecture offer similar display performance to AMOLED but at a more affordable price and with better safety, and they are expected to compete with AMOLED in the market.

For more information on this report or market data from TrendForce’s Department of Display Research, please click here, or email Ms. Grace Li from the Sales Department at graceli@trendforce.com