According to the latest IHS Markit report, the automotive industry is undergoing a transformation driven by high-resolution cameras and displays. As traditional mirror designs become less prominent, automakers are leveraging advanced visualization and safety technologies to enhance driving experiences. While new applications like improved fuel efficiency are emerging, the most significant change lies in the evolution of rearview and side mirrors over the next decade. Rearview mirror displays have already proven successful in real-world use, offering drivers a wider field of view and eliminating blind spots. General Motors was among the first to adopt this technology in 2015, and other manufacturers have since followed suit, launching similar solutions to meet growing demand. Beyond improving driver comfort and awareness, these systems allow for seamless switching between traditional mirrors and camera feeds, giving drivers greater control. The technology has gained acceptance from both regulators and consumers. IHS predicts that production will reach 1.8 million units per year by 2025, with Japan and North America leading the market expansion. Despite the promising outlook, cost remains a major barrier to widespread adoption. However, the unique benefits of these systems—such as enhanced visibility and differentiated performance—are attracting more automakers to the space. The camera is increasingly seen as a viable replacement for traditional side mirrors. Improved aerodynamics and better visibility are key factors behind this shift. Designers are continuously innovating, and current concepts are supported by government regulations, signaling a future where such systems will be standard. IHS also notes that the dedicated side-view camera market is expected to scale rapidly within the next two years. By 2025, over half a million side-view camera display systems are projected to be installed in new vehicles, adding new technological value. Currently, these cameras are used primarily to improve safety and driving experience. However, when combined with AI and machine vision software, they can enable tracking and recognition, making them essential components of autonomous driving systems. New opportunities are arising for suppliers as content differentiation becomes a key trend. Automotive camera systems and display modules are seeing increased demand, while security vendors benefit from advancements in hardware and video processing. IHS highlights that automakers will gain more flexibility in integrating safety features like pedestrian detection or alerts, helping drivers stay aware of their surroundings and respond quickly. These innovations are not just about cost—they are reshaping the driving experience and becoming an essential part of modern vehicles.

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