Smart mobility’s next chapter: navigating geopolitical and technological shifts

The automotive industry is undergoing a significant shift driven by electric vehicles (EVs), software-defined vehicles (SDVs), and smart mobility solutions. But beyond the technological innovations reshaping how vehicles are built and experienced, a combination of geopolitical forces, supply chain challenges, and evolving consumer expectations is setting the stage for an industry transformation like never before. This blog breaks down the key trends shaping automotive display technologies and human-machine interfaces (HMIs) in the years ahead.

Despite ongoing economic headwinds and increasing competition, especially from Chinese manufacturers, the automotive display market is showing remarkable resilience. Omdia’s Automotive Display Intelligence Service projects a 5.5% year-on-year (YoY) growth in automotive display panel shipments in 2024, totaling 230.5 million units. While OLED penetration remains limited at around 1% (2.6 million units), demand for head-up displays (HUDs) and passenger displays is surging, driven by their growing presence in Chinese EV models and a shift toward minimalist cockpit designs.

Low-temperature polysilicon (LTPS) LCD remains the dominant display technology, accounting for over 30% of shipments. However, the industry is on the cusp of a transformation, with next generation display technologies like OLED and microLED poised to redefine automotive interiors. These advanced solutions promise features such as transformable panels, immersive dashboards, low power consumption, and seamless integration with cameras and sensors. Privacy-focused displays, holographic interfaces, and full-array local dimming TFT LCDs are also emerging as viable, cost-effective solutions for mainstream vehicles. While OLED adoption remains constrained by cost and supply chain challenges, its presence in premium models continues to grow, and microLED’s superior brightness and flexibility could revolutionize both interior and exterior applications by 2026.

Shifting trade policies and geopolitical tensions are forcing automakers and suppliers to rethink their supply chains. The proposed 25% tariff on imports from Mexico and Canada could introduce significant cost pressures and vulnerabilities in North America’s automotive sector. Meanwhile, China’s dominance in automotive displays is undeniable, with Chinese suppliers projected to hold 53% of the market share for 2024.

In response, the 'China plus N' strategy has gained momentum, allowing suppliers to balance costs and mitigate risks by diversifying production across multiple locations. This strategy is leading to a dual pricing model—one for China-based manufacturing and another for production outside of China. Countries like Vietnam, India, and Thailand are emerging as attractive alternatives for global supply chains, reinforcing the growing need for flexibility and innovation.

The U.S. is also tightening its grip on automotive technology security. The Department of Commerce recently announced a sweeping ban on vehicles incorporating critical Chinese software and hardware, with software restrictions taking effect for 2027 models and hardware bans following for 2029 models. These measures highlight the intensifying global push to secure supply chains and mitigate geopolitical risks in the automotive sector.

As the industry moves forward, balancing cutting-edge technology with geopolitical realities will be critical. Automakers and suppliers must stay agile, investing in innovation while adapting to shifting trade policies and supply chain dynamics.

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