There was a time when displays in cars were simply output devices. They told you your speed, your fuel level, and let you adjust the radio and audio selection. Today, they are the centerpiece of the software-defined vehicle (SDV), and they are impacting the entire automotive supply chain. Displays are no longer just screens – they are platforms, revenue enablers, and differentiators. As a result, display suppliers are finding themselves at a crucial crossroads, presenting an opportunity to step up and become major players in the SDV era.
Automotive supply chains are under enormous pressure
Global disruptions over the past few years, ranging from geopolitical economic pressures, global instability, through to semiconductor shortages, are exposing vulnerabilities in traditional supply chains. These stresses pushed OEMs toward rethinking their sourcing strategies, favoring more resilient, agile networks.
For display suppliers, this pressure means far more than meeting delivery timelines. It means being ready to take on more responsibilities, including system integration, validation, and software readiness. In an SDV world, there’s little room for passive component suppliers.
SDV is shaking and shaping the industry
The transition to SDVs is not just about adding software. It’s about reimagining how vehicles function and how drivers interact with them. Software now defines features, updates, and user experience. And the display is the access point for all of it.
The screen is where customization happens. It’s where safety-critical data meets entertainment, where augmented reality overlays enhance navigation, and where over-the-air updates are made visible. This shift has elevated the display from a supporting role to a core asset in the digital cockpit.
Automotive business offering exciting opportunities to new players
The SDV landscape has opened the door for new types of collaboration. OEMs are no longer tied to legacy Tier 1s for every component. Instead, they are looking for partners who can deliver complete, integrated solutions.
For display suppliers, this means moving beyond build-to-spec and into the realm of intelligent modules. High-resolution micro-LEDs, curved displays, flexible surfaces, anti-glare coatings, these are only part of the equation. The real value comes when hardware is combined with automotive-grade software, enabling seamless integration and a next-generation user experience. Every customized moment helps enhance the OEMs brand promise, and maintains the ever-important customer intimacy journey.
Industry forced to shift from inefficient capital spending to efficient innovation
Legacy automotive programs once relied heavily on capital-intensive development cycles. And, is often the case, still do. However, the SDV model rewards those who innovate with agility and efficiency. Investments in software platforms, integrated display modules, and reusable architectures are becoming far more strategic than investments in traditional tooling.
OEMs want plug-and-play modules that reduce development time, simplify validation, and align with their software roadmaps. For display suppliers who can deliver this, especially with help from experienced software partners, there’s a tangible opportunity to truly lead.
Every challenge comes with opportunity: SDV concept is opening path to new business
This shift creates entirely new revenue models for display suppliers. Screens can now serve as platforms for services. Want to offer premium themes or custom visual layouts? Enable gesture or voice interaction? Activate integrated sensors for fingerprint, force, thermal, proximity or image recognition? Deliver AR navigation or wellness features? All of this can be offered post-sale, over the air.
This transforms the display from a cost center into a recurring revenue asset. It also opens opportunities for value-added services like software updates, lifecycle support, and display validation. Display suppliers embracing this mindset will not just supply parts, they’ll participate in the long game.
Display suppliers evolve to Tier 1 module suppliers with support of software partners
As displays become smarter and more central to the SDV experience, OEMs are looking for suppliers that can own and deliver the complete module. This includes the display panel, touch and haptic layers, integrated sensors, embedded controllers, and the foundational software stack.
For many display companies, this requires a shift in both mindset and capability. It also requires the right partnerships. At Elektrobit, we work directly with display suppliers to provide automotive-grade software, support for demonstrators, and end-to-end expertise that enables them to present directly to OEMs. We help our partners leap over traditional Tier 1 bottlenecks and deliver fully integrated cockpit solutions.
Software is the key
What defines a display in the SDV era is not only the glass, the curve, or the brightness. It’s the integrated system as a perfect combination of all components and ultimately the software stack that runs behind it.
The ability to render real-time graphics, personalize the interface, and connect to vehicle systems is what sets a display apart. This requires deep knowledge of embedded systems, operating systems, middleware, display drivers, and HMI frameworks. For display suppliers ready to make the leap to Tier 1, software expertise is absolutely essential, and access to the right software partner is crucial.
From display to differentiator
The SDV transformation is moving fast. For display suppliers, this is a rare opening to step into a more influential, more strategic role in the automotive value chain. With the right technology, the right mindset, and the right partners, the screen in the car becomes much more than a display. It becomes the face of the vehicle. And with Elektrobit, it can become your path to Tier 1.
Software ahead of the hardware curve
The automotive industry isn’t waiting for the future; it’s building it now. And Elektrobit is helping shape that future by allowing software teams to work ahead of the curve.
By decoupling software from hardware, we’re unlocking new value, shortening release cycles, and empowering OEMs to deliver more features, faster, without waiting for physical platforms to catch up.
Learn more
Explore how Elektrobit’s digital cockpit solutions shape the automotive industry
Watch our expert video on trends shaping next-gen automotive cockpits
Download our next-gen cockpit infographic
Author
Dr. Siegfried Dirr
Strategic Business Development
