With the rise of the new energy vehicle industry and the advancement of automotive intelligence, the smart cockpit has gradually become a core development direction for automakers. As a critical interface for human-vehicle interaction, automotive displays play a key role in enhancing cockpit intelligence, boosting the sense of technology, and creating immersive experiences. They have become one of the essential indicators of smart cockpit experiences.
Currently, automotive displays are primarily used in various scenarios, including instrument panels, central control displays, rearview mirrors, heads-up displays (HUD), and rear-seat entertainment systems. As more vehicle models adopt diversified display products, automotive displays are evolving towards larger sizes, wider aspect ratios, more screens, and more flexible placement methods, in order to meet the ever-evolving interaction demands of smart cockpits.
Mini/Micro LED Driving the Upgrade of Automotive Displays
Automotive display technology currently includes LCD, OLED, Mini LED, and Micro LED. Although LCD remains the mainstream, the automotive industry’s shift towards the “new four modernizations” (electric, smart, connected, and shared) has increased demands for higher display quality, and OLED and Mini/Micro LED are gradually gaining traction in automotive displays.
Among them, Mini LED technology, with its advantages of high brightness, high contrast, and wide color gamut, has been adopted by many domestic and international automakers for mass-production models. Domestic brands such as Hongqi, Zeekr, Xiaomi, Yuanwang, Feifan, NIO, Li Auto, and SAIC Roewe have taken the lead in adopting it. International brands like Mercedes-Benz, Lincoln, and Cadillac have also introduced this technology to enhance the display quality of their high-end models.
In terms of application, Mini LED backlight technology is gradually being used in automotive central control screens, instrument panels, passenger screens, cross-A-pillar displays, safe driving interaction screens, wrap-around/curved screens, and panoramic intelligent interactive sliding screens, among other areas. The supply chain includes LED manufacturers like Refond and Jufei Optoelectronics, as well as panel manufacturers like TCL CSOT, BOE, and Innolux.
Mini LED backlighting offers higher contrast and brightness, and supports high dynamic range (HDR) displays. This feature was showcased in the flagship Hongqi “Guoya” series released in November, which is equipped with a 13.48-inch Mini LED backlit display provided by BOE MLED. Additionally, the display module boasts a long lifespan and excellent shock resistance.
Not only does Mini LED backlighting enhance display performance, but it also meets user demands for lightweight automotive display designs. The Zeekr 7X, launched in October, features a 16-inch Mini LED floating screen that uses Refond’s Mini LED COB backlight module, delivering a slimmer display effect.
Moreover, Mini LED backlight technology is driving the high-end upgrade of smart cockpits. In March, Xiaomi’s first electric vehicle, the SU7, was equipped with a 16.1-inch central control screen, featuring a TCL CSOT Mini LED backlight display, supporting 3K resolution, ultra-narrow bezels, and a high screen-to-body ratio. This screen enables users to adjust driving modes, seats, and cabin settings, enhancing the smart experience.
Although the penetration rate of Mini LED backlighting in the automotive display field is relatively low in 2024, with widespread recognition of the technology by major automakers, it is expected that by 2028, the penetration rate of Mini LED backlighting in automotive applications will reach 6%, with shipments of 15 million units, a roughly 10-fold increase from 2024.
With the growing demand for automotive displays, the application of Mini LED technology is not limited to backlighting; it is also gradually expanding to direct display technology. Mini LED RGB direct display technology, with its advantages of high brightness, wide color gamut, high contrast, and low power consumption, is gradually gaining prominence in the automotive field, with applications extending to Mini LED automotive interactive screens and dynamic automotive logos.
In October, Changan Automobile‘s new model, Qiyuan E07, began global pre-sales, featuring Jufei Optoelectronics’ Mini COB Star Ring Smart Full-Color Interactive Screen in commercial mass production. Previously, Jufei Optoelectronics had provided the first Mini COB direct display interactive screen for the Geely England LEVC TX5. It is said to be the industry’s first Mini COB direct display interactive screen for use outside of vehicles.
On the other hand, Micro LED screens in automotive applications are still in the early stages. No mass-produced vehicles currently use this technology. This is mainly due to the extended validation cycles required for automotive-grade products, as well as technical challenges and high costs associated with Micro LED technology, all of which have limited its widespread adoption in the automotive industry.
Despite these challenges, the application prospects of Micro LED technology are highly anticipated. Micro LED can combine transparent displays with car windows and integrate information in the form of AR-HUD (augmented reality heads-up display) or P-HUD (panoramic heads-up display), meeting the needs of drivers and passengers for integrating virtual and real-time information in automotive settings.
As technological bottlenecks are gradually overcome, the application potential of Micro LED will be released in more automotive display scenarios. By 2028, it is expected that the global market value of Micro LED chips will grow to $489 million. At that time, Micro LED technology will inject more vitality into the high-end automotive display market.
LED Manufacturers’ Opportunities in Automotive Displays: Accelerating Technology and Domesticization Process
Mini/Micro LED Technology Accelerates Growth in Automotive Displays
The automotive display market has witnessed rapid development, driven by the rise of Mini LED and Micro LED technologies, which have not only accelerated the technological upgrade of automotive displays but also provided key opportunities for LED industry players to open new markets, achieve technological breakthroughs, and drive industrial upgrades.
Mini LED Automotive Displays in High Demand
In 2024, automobile manufacturers are under increasing pressure from market competition and the decline in costs. They are actively adopting advanced technologies such as Mini LED backlight displays as high value-added products to market, driving stable growth in the automotive LED market demand, which is projected to reach $3.445 billion, surpassing the performance of vehicle shipments.
In response to this market opportunity, LED companies are already gearing up, accelerating technology development and market expansion. In particular, Mini LED automotive display products have been successfully integrated into the supply chains of many automotive companies.
Future Developments in the LED Automotive Display Market
In terms of future plans, HongLiZhiHui focuses on developing Mini LED technology while also advancing traditional side-lit backlight technology. Jufei Optoelectronics, with its comprehensive portfolio of automotive-grade Mini LED solutions, will continue to develop low-cost, micro, full-color Mini POB solutions and next-generation Mini COB solutions.
Refond Optoelectronics specializes in Mini LED technology, pushing forward COB Mini backlight and Mini LED direct display solutions, expanding into automotive interior and exterior trims and consumer electronics markets, particularly in Mini pixel tail lights and LOGO car badges.
LED Automotive Display Technology Boosts Domesticization Process
As the demand for automotive displays grows rapidly, domestic LED manufacturers continue to develop new display technologies such as Mini LED, constantly enhancing their core competitiveness and technological capabilities, which accelerates the domesticization process. Meanwhile, the rise of new energy vehicles has driven a sharp increase in demand for automotive displays and lighting, creating new development opportunities for domestic LED companies.
Progress in Automotive LED Packaging
For example, in the automotive LED packaging sector, although international giants have made rapid advancements in technology, domestic manufacturers are closing the gap in product performance and cost-effectiveness through independent innovation and localized production, quickly catching up with international players.
Nationstar states that while domestic LED manufacturers have started later than international companies in terms of technological accumulation and market development, they hold advantages in resource integration and cost control, enabling them to gradually gain market share in competitive scenarios.
LatticePower highlights that in recent years, domestic LED manufacturers have significantly narrowed the performance gap with international companies through continuous technological progress. The advantages of domestic manufacturers lie in their higher cost-performance ratio, shorter lead times, and flexible services, allowing for customized products based on client needs, with minimal risk of supply disruption.
APT Electronics shares a similar view, noting that domestic companies excel in cost and local customer service, which are driving the rapid domestication of automotive-grade LEDs. Additionally, the demand for automotive lighting and displays is strong in 2024 due to increased Chinese automobile production and the rapid development of smart car lights and intelligent cockpits, further boosting market demand.
However, Refond Optoelectronics cautions that although some domestic companies have closed the gap with international giants—such as surpassing traditional international second-tier brands in terms of quality—many domestic LED manufacturers are flooding into the automotive market without independent automotive-grade production lines. This phenomenon may harm domestic brands and undermine confidence in them.
Challenges in the Automotive Display Market
The automotive display market is highly competitive, and the layout of domestic LED enterprises is gradually stimulating market dynamics.
APT Electronics notes that automotive displays are one of the most profitable segments in the LED industry, making it a key area of focus for development. LatticePower also states that automotive LEDs are still highly sought after, with demand continuing to rise. In 2024, with the increase in Chinese car production and the growth of intelligent cockpits, the demand for automotive LEDs will continue to expand.
Intensified Competition and Market Pressure
However, the intensifying competition in the market has led to the involution phenomenon.
LatticePower points out that although the demand for automotive LEDs is increasing, the market is facing intensified competition as many domestic LED manufacturers enter the automotive industry. Furthermore, automobile manufacturers’ continued focus on cost compression is eroding profit margins.
Refond Optoelectronics also notes that the automotive market is a high-risk industry, and companies without strong product technology, R&D capabilities, and automotive-grade systems will struggle to succeed in the fierce competition.
APT Electronics further emphasizes that as automobile manufacturers continue to enforce strict cost controls, combined with growing competition from traditional LED companies and new entrants, competition in the automotive display field will become even more intense. By 2025, internal competition will deepen, and product prices may continue to decline.
Key Factors for Success in the Automotive Display Market
In such a competitive landscape, customers are no longer solely focused on price when choosing suppliers.
LatticePower stresses that customers are increasingly prioritizing cost-effectiveness, continuous innovation, and reliable manufacturing capabilities as key factors in their decision-making.
Refond Optoelectronics also emphasizes that while market opportunities appear abundant, companies must possess core competitiveness to seize these opportunities. As competition between car manufacturers intensifies, domestic brands’ advantages in terms of quality, performance, and price will become even more apparent, providing greater development space for domestic LED enterprises.
Panel Manufacturers Target Tier 1: Micro LED as the Key Breakthrough
As automotive screen technology advances, the automotive display supply chain is undergoing a transformation. In the traditional supply chain, panel manufacturers, module suppliers, system integrators, and vehicle manufacturers each play their roles, with vehicle manufacturers conveying demand through Tier 1 suppliers. However, the development of automotive electrification and intelligent technology has created a demand for higher-end display technologies, prompting vehicle manufacturers to collaborate directly with panel manufacturers to improve efficiency and reduce costs.
To adapt to this transformation, panel manufacturers need not only to deepen their collaboration with various supply chain segments but also to continuously drive innovation in display technology. This year, panel manufacturers such as BOE, TCL CSOT, TIANMA, AUO, and Innolux have ramped up their investments in Mini LED and Micro LED technologies, aiming to take the lead in emerging fields like automotive displays and intelligent cockpits.
Notably, the Micro LED automotive display products launched by panel manufacturers this year are diverse, including HUD (Head-Up Displays), transparent HUDs, transparent irregular rearview mirrors, center armrest displays, Human-Machine Interfaces (HMI), and flexible displays. These products not only meet the market’s demand for high resolution and brightness but also drive automotive display systems towards more advanced and diversified directions.
While pushing for innovation in Micro LED products, panel manufacturers are also accelerating capacity expansion.
Currently, BOE has successfully launched the world’s first 6-inch Micro LED mass production line, TCL CSOT has completed the construction of a Micro LED pilot production line, TIANMA‘s production line has entered the trial production phase, Visionox‘s invested company is actively striving for mass production, AUO plans to achieve mass production of its 4.5-generation production line by 2025, and Innolux continues to improve its Micro LED production line.
Summary
With the wave of intelligent and electrification sweeping through the industry, both LED manufacturers and panel makers are positioning themselves in Mini LED and Micro LED high-end display technologies, seeking to secure a foothold in emerging markets like smart hardware and electric vehicles. These new technologies not only help companies break free from the “involution” of the traditional display market but also open up new growth areas.
At the same time, the traditional automotive display supply chain system is undergoing profound reshaping, with increasingly complex competition and collaboration relationships within the industry chain. Cooperation and competition between upstream and downstream manufacturers are becoming closer, forming more diversified collaboration models. The interplay between technological innovation and market demand is driving the reconstruction of the industry chain, and the changes in the industrial landscape are accelerating the industry’s upgrade.
In this ever-changing environment, how manufacturers stand out in the dual competition of technology and market remains an open question. While technological innovation is crucial, the ability to strategically plan, integrate resources, and collaborate with other segments of the industry chain will also play a key role. Who will emerge victorious in this dual competition of technology and market will need to be tested over time.
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