Automotive LCD shipments projected to surge
1/17/2013 1:51 PM EST
SAN FRANCISCO—Shipments of full-color liquid crystal displays (LCDs) for automotive applications are expected to nearly double over a four year period from 2012 to 2016, boosted by a U.S. mandate on rear-view cameras that will expand their us in midrange and economy-class vehicles, according to a forecast from market research firm IHS iSuppli.
Shipments of automotive LCDs are projected to reach 116.8 million units by 2016, up 89 percent from 61.7 million units in 2012, according to a recent report on mobile and emerging displays from IHS. Shipments of the LCDs are expected to grow by double digit percentages of between 15 and 23 percent in each of the four years of the forecast period, IHS said.
Automotive LCD shipments are expected to exceed 100 million units for the first time in 2015, IHS said.
"A major driver of growth in the automotive LCD market during the next few years is a U.S. government mandate requiring all cars to incorporate rear-view cameras by 2014," said Vinita Jakhanwal, director for small and medium displays at IHS, in a statement. "The mandate will result in an increase in displays used in cars. Most of these displays will find a place in the center stack consoles of cars, causing center stack display market shipments to rise 21 percent year over year in 2014."
The U.S. National Highway Safety Transportation Administration (NHSTA) is phasing in new rules requiring rearview cameras intended to extend drivers' field of vision and prevent accidents and fatalities. The rules finally being put in place are the result of legislation signed into law by former U.S. President George W. Bush in 2008. The Cameron Gulbransen Kids Transportation Safety Act was named for a two-year old boy who was killed in 2002 when his father backed over him in an SUV.
The NHSTA estimates that the new mandate could save as many as 100 pedestrian lives per year. But critics of mandate have argued that it is too costly. It is estimated that the additional equipment can cost between $160 and $200 per vehicle, equating to about $2.7 billion per year.