The demand of vehicle Mini LED keeps growing
At present, the popularity of Mini LED technology is gradually heating up. In addition to the field of electronic consumption, automotive Mini LED has become another major application field.
As the epidemic is gradually brought under control, the automotive market has begun to pick up, and downstream automotive displays have also grown. According to the data, the market size of automotive displays has been growing, and the market size has grown from US$10.5 billion in 2017 to US$13.6 billion in 2020, with a compound annual growth rate of 9.01%.
The automotive market will become a new growth point for Mini LED. It is predicted that the scale of vehicle Mini LED will start to be released in 2023, and the market size is expected to reach 4.5 million pieces in 2025, with a compound annual growth rate of 159%.
In-vehicle applications will be the main battlefield in the future
Electrification and intelligence are milestones in the development of automobiles, and the key factors driving the development of automobiles are inseparable from in-vehicle displays. In recent years, the on-board display of automobiles has moved towards large-screen, multi-screen and high-definition.
The Mini LED screen of the car standard has not only moved from the car center console to the interactive display of the whole car, but also from the inside of the car to the outside of the car. This also shows that in-vehicle display technology has ushered in a diversified era.
From the most traditional LCD liquid crystal display to the most advanced OLED display technology, there are advantages and disadvantages for the screen design of the car. Comparing various technical routes, Micro LED panel display technology is too difficult, and there is currently no mass-produced model equipped with this technology.
However, the OLED technology has not solved the problem of burn-in for many years, and the brightness and service life of the light source excited by OLED materials are generally low, which hinders the further development of OLED screens in the automotive field.
As an upgrade to the traditional LCD backlight, Mini LED backlight combines the advantages of OLED and LCD in terms of display performance, and has the characteristics of long life and no screen burn. Wang Jiangbo, vice president of HC Semitek, said that as Mini LED chip technology matures, Mini LED will gradually be introduced into automotive displays.
As a new generation of display technology, Mini LED entered the first commercial year in 2021. According to incomplete statistics, in the current Chinese market, BOE, Tianma Microelectronics, Tcl China Star Optoelectronics, Infovision Optoelectronics, HC SemiTek, and many other companies have deployed Mini LED backlight technology for vehicles.
CITIC Securities said that in the medium and long term, Mini LED is expected to benefit from the mature technology and cost reduction (annual decline is expected to be 15%-20% in three years). The penetration rate of backlit automotive displays is expected to be as high as 10%.
Zhongtai Securities pointed out that with the continuous advancement of automobile intelligent network connection, Mini LED backlight display has relative competitive advantages in performance and cost, and it is expected to continue to increase the penetration rate of vehicle screens in the future.
Mini LED backlight provides support for the intelligent development of new energy vehicles
According to the reporters, among the car companies that are keen to let the Mini LED screen “get on the car”, new energy vehicles occupy most of the seats. Stimulated by the active pursuit of higher display effects and the trend of digital instrument display for new energy vehicles, Mini LED backlights will also be widely installed on new energy vehicles.
At present, a number of car companies have announced the application of Mini LED backlight technology in their in-vehicle displays, including Lili L9 (which applies Mini LED technology to a safe driving interactive screen designed with HUD head-up display), Weilai ET7 (equipped with BOE 10.2 inch HDR Mini LED-backlit digital instrument), Cadillac LYRIQ (33-inch ring-screen Mini LED-backlit super retina screen supplied by Innolux), and the third-generation Roewe RX5, Feifan R7, etc.
In fact, the competition points of new car-making forces cover all aspects. With the accelerated penetration of automobile intelligence, the importance of on-board screens as the main medium for human-vehicle interaction is becoming more and more prominent. The automotive-grade Mini LED backlight has an extremely wide range of applications, and is reflected in the central control navigation, instrument panel, interior atmosphere and exterior lighting of the car. In terms of automotive technology and intelligence, the car screen as the main form of presentation is also particularly important.
Mini LED faces technical challenges
However, although Mini LED has the best performance, it also faces technical challenges and high cost, so it is difficult to achieve large-scale commercial mass production in the short term. Benefiting from the support of national and local policies, as well as the continuous growth of demand in the downstream market, upstream has become the focus of investment.
At present, China’s foreign leading companies have obtained high investment and financing in the upstream. According to the announcements announced by the upstream leading companies, they are all rushing to build factories and expand production projects, which will be conducive to the rapid development of Mini LED technology. As well as stabilizing the supply of the supply chain and the continuous control of costs.
From the perspective of the relationship between car companies and the supply chain, the introduction of most Mini LED display screens into in-vehicle applications still takes a long time to verify, including product promotion, verification stage, cost and even industry standards and other issues that need to be resolved urgently. From the perspective of the future supply chain cycle, with the continuous improvement of technology, the cost will be reduced accordingly.
With suppliers launching in-vehicle display products one after another, display technology is expected to be more widely used in the future. It can be seen that a market ranging from 10 billion to 100 billion is constantly rising, which will also provide a stronger guarantee for the intelligent development of new energy vehicles.