SANTA CLARA, CA – Shipments of TFT-LCDs used in automobiles for devices such as navigation and rear seat DVD players increased 16% year-over-year to 49 million in 2012, says NPD DisplaySearch.

Shipments are expected to increase to 70 million by 2016.

“Consumer demand is driving the production of smarter and more efficient automobiles, requiring automotive displays that increase functionality and safety,” said Hiroshi Hayase, vice president of Small/Medium Displays at NPD DisplaySearch. “Features such as navigation, audio and air-conditioning control, rearview monitors, and eco-driving displays provide safety, energy information, and other conveniences while on the road.”

A factor propelling automotive displays is the growing production of hybrid and electric vehicles, the firm says. Helping fuel the fire is demand for replacements of older single-function displays, which use passive matrix LCDs.

Japan continues to dominate the production of automotive TFT LCD panels, especially in high-grade automobiles, while the US and Europe are making headway in mid-grade and small-size vehicles, says NPD.

In 2012, Japan Display became top automotive TFT LCD maker, followed by Sharp and LG Display. Automotive TFT LCD panel demand in Japan was led by car navigation set makers, including Panasonic, Alpine, and Pioneer. However, demand from set makers in the US and Europe was driven by cluster component makers, including Continental AG, BP/Bosch, Ford, and Johnson Controls.