lcd module market outlook pricelist

The global display device market reached a value of about USD 131.78 billion in 2021. The industry is further expected to grow at a CAGR of 5.2% in the forecast period of 2023-2028.

The Asia Pacific is expected to emerge as one of the world"s leading markets for display devices. Factors like the growth in the number of tech giants in the region and the availability of manufacturing resources at low cost contribute to the development of the display device industry in the Asia Pacific region.

The residential sector is projected to hold a significant market share in the coming years. The demand for electronic goods, including television, smartphones, laptops, tablets, as well as smart watches, has risen as technological developments continue, which is aiding the growth of the display device industry in the residential sector. Key players are now shifting to implement effective and luminous displays, leading to growth of microdisplay technology, which is expected to aid the global market growth in the coming years.

The remarkable rise in the usage of various consumer electronic products using state-of-the-art technologies is the main driving force behind the industry growth. The rising demand in the gaming and entertainment sector for high-quality displays as well as the increasing popularity of OLED-based technologies are notable factors that are boosting the market growth. The widespread adoption of flexible OLED display technologies is also increasing the demand for display devices. It is also anticipated that the advanced functions of display device will propel the market growth further in the coming years. Other factors boosting the market growth are the rising urbanisation, rising economies, as well as the rising disposable incomes of the consumers.

The report gives a detailed analysis of the following key players in the global display device market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Display Type, Technology, Application, End Use, Region

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

The global TFT-LCD display panel market attained a value of USD 181.67 billion in 2022. It is expected to grow further in the forecast period of 2023-2028 with a CAGR of 5.2% and is projected to reach a value of USD 246.25 billion by 2028.

The current global TFT-LCD display panel market is driven by the increasing demand for flat panel TVs, good quality smartphones, tablets, and vehicle monitoring systems along with the growing gaming industry. The global display market is dominated by the flat panel display with TFT-LCD display panel being the most popular flat panel type and is being driven by strong demand from emerging economies, especially those in Asia Pacific like India, China, Korea, and Taiwan, among others. The rising demand for consumer electronics like LCD TVs, PCs, laptops, SLR cameras, navigation equipment and others have been aiding the growth of the industry.

TFT-LCD display panel is a type of liquid crystal display where each pixel is attached to a thin film transistor. Since the early 2000s, all LCD computer screens are TFT as they have a better response time and improved colour quality. With favourable properties like being light weight, slim, high in resolution and low in power consumption, they are in high demand in almost all sectors where displays are needed. Even with their larger dimensions, TFT-LCD display panel are more feasible as they can be viewed from a wider angle, are not susceptible to reflection and are lighter weight than traditional CRT TVs.

The global TFT-LCD display panel market is being driven by the growing household demand for average and large-sized flat panel TVs as well as a growing demand for slim, high-resolution smart phones with large screens. The rising demand for portable and small-sized tablets in the educational and commercial sectors has also been aiding the TFT-LCD display panel market growth. Increasing demand for automotive displays, a growing gaming industry and the emerging popularity of 3D cinema, are all major drivers for the market. Despite the concerns about an over-supply in the market, the shipments of large TFT-LCD display panel again rose in 2020.

North America is the largest market for TFT-LCD display panel, with over one-third of the global share. It is followed closely by the Asia-Pacific region, where countries like India, China, Korea, and Taiwan are significant emerging market for TFT-LCD display panels. China and India are among the fastest growing markets in the region. The growth of the demand in these regions have been assisted by the growth in their economy, a rise in disposable incomes and an increasing demand for consumer electronics.

The report gives a detailed analysis of the following key players in the global TFT-LCD display panel Market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

LCD TV panel prices reached all-time lows in August but they continue to decline in September, and we continue to forecast that the industry will have an “L-shaped” recovery in the fourth quarter. In other words, no recovery at all until 2023; the only question is how low prices will go before they flatten out. The ‘perfect storm’ of a continued oversupply, near-universally weak demand and excessive inventory throughout the supply chain has combined, and every screen size of TV panel has reached an all-time low price. Although fab utilization slowed sharply starting in July, we do not see any signal to suggest that prices can increase any time soon.

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With the evolutionary changes in consumer electronics from past few years, the demand for the electronic parts is increasing rapidly. LCD display modules are electronically modulated optical device or flat-panel display and use the light-modulating properties of liquid crystals.

LCD display modules display arbitrary image or fixed images and low content information. The information can be displayed or kept hidden including digits, preset words, and seven-segment displays, as in a digital clock.

Increasing production of electronic devices such as aircraft cockpit displays, computer monitors, LCD televisions, indoor and outdoor signage and instrument panels is responsible for the increasing demand for the LCD display module. Manufacturers of the LCD display modules are focusing on developing innovative products to attract more customers to increase the revenue generation by sales of displays.

Manufacturers of the LCD display modules are coming up with the product innovations such as background display colors, character sizes, number of rows, and others and these features are fueling the increasing integration of the LCD display modules.

Constant advancements in the LCD display modules and improvement in the functionality of displays is the primary factor driving the growth of the LCD display module market.

The manufacturers are also focusing on the delivering a LCD display modules are per the end user requirements as these displays are primarily used for the consumer electronic devices which are produced in bulk quantity.

The increasing production of small electronic devices such as cameras, watches, calculators, clocks, mobile telephones, DVD players, clocks, and other devices is creating a huge demand from manufacturers of these products for the LCD display modules as per their product requirements.

On the other hand, availability of LCD display modules at low prices due to the entry of new players from developing countries, shortage of electronic components is a significant challenge for the established players in this market.

The global vendors for LCD Display Module include RAYSTAR OPTRONICS, INC., WINSTAR Display Co., Ltd., Newhaven Display International, Inc., Sharp Microelectronics, 4D Systems, ELECTRONIC ASSEMBLY GmbH, Kyocera International, Inc., Displaytech, and others. LCD display manufacturers are coming up with the new features and more advanced functionalities of the displays for sustaining in the global competition.

In February 2018, Displaytech, LCD display module manufacturer released DT070CTFT, a 7 inch 800 x 480 TFT display. The company is offering LCD displays with a resistive touch as well as a capacitive touch panel.

The global market for LCD Display Module is divided on the basis of regions into North America, Latin America, Western Europe, Eastern Europe, the Asia Pacific Excluding Japan, Japan, China, and Middle East & Africa. Among these regions, the countries such as Taiwan, South Korea, and China holds major market share in terms of revenue generation from the sale of LCD display module because of the higher presence of manufacturers for these displays as well as the dense presence of the consumer electronics manufacturers.

North America, Western Europe is the second largest market for the LCD display module due to increasing demand from consumer electronics manufacturers. MEA region is expected to grow at moderate CAGR.

The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

The digital display industry finds itself in this weird circumstance, says supply chain analyst Ross Young, in which the 2020-2021 pandemic period was actually pretty good, and now, as the recovery ramps up and inflation is rising, prices are down and the outlook is shaky.

“2022 is the worst of times, everything is going wrong for the display industry – lower units, lower prices, loosening supply, higher costs, lower margins. Prices expected to fall to cash costs in some cases. The display industry will remain cyclical. Over investment over the last two years is contributing to the current sharp price reductions. There will be a large drop in capex next year and may see additional capacity come offline. Furthermore, over-investment in IT markets is a concern with LCD and OLED suppliers all targeting the same markets with significant new capacity.”

COVID-19 pulled in significant demand while at the same time supply was constrained leading to much higher prices and unusually high growth. Display revenues rose 31% Y/Y in 2021 to a record $164B. This was achieved due to strong demand from work from home (WFH) and learn from home (LFH) with notebooks rising around 100M units from 2019 to 2021. Utilization trended upward in 2020 and 1H’21, as demand growth outpaced supply growth. LCD equipment spending was down 26% in 2020, which led to the slower supply growth. Utilization would have been even higher without component shortages. With supply/demand tight and driver IC shortages persisting, panel manufacturers and brands focused on higher margin products, further boosting display margins. Display stocks outperformed many other indexes until April 2021 when panel prices began to level off.

The surge in LCD prices enabled LCDs to outgrow OLEDs in 2021 with a 35% to 20% advantage with LCDs boosting their share to 75% of the display market. MiniLEDs rose to a 2% share in 2021.

BOE became the top panel supplier in revenues with a 19.1% share on 73% growth. SDC fell to #2 but LGD significantly narrowed the gap. SDC remained dominant in OLEDs with a 59% share, down from 65%, with LGD at #2 at 23%. Chinese suppliers still account for less than 20% share despite massive capex. In LCDs, there was double-digit growth for the top eight suppliers. BOE’s advantage rose from two points to nine points on its capacity expansions and well-timed CEC Panda acquisition. LG Display remained #2 followed by AUO, Innolux and China Star. Operating margins, stock prices by supplier and our panel supplier stock index were also shown.

Young notes that while most industries, and by extension consumers and end-users, are seeing price increases for goods rise on inflation, supply disruptions and shortages, display prices have been, and are still, falling this year due to a lot of new LCD capacity coming online, as well as slower than expected demand growth.

Last year, we were far more optimistic for the LCD industry in 2022 and beyond, because panel manufacturers had restrained themselves with their capex plans. However, over the past year, we have seen numerous new fab and capacity expansion announcements. As a result, LCD supply growth is now significantly higher than previously expected, 16% higher for 2022 vs. our Q1’20 forecast and 22% higher for 2025 vs. our Q1’20 forecast. Furthermore, much of this investment is happening in IT markets as panel suppliers believe the boom in IT markets will continue. OLED suppliers are also targeting the IT market with their new investments. However, the IT market peaked in 2021. Thus, we will see much of this new capacity reallocated to automotive, which is growing and we will likely see growing price competition in the IT space leading to higher penetration for more advanced IT panels – OLED, MiniLED, IGZO backplanes, etc.

LCD panel prices have risen for 4 months in a row because of your home gaming? Since this year, the whole LCD panel market has smoked. Whether after the outbreak of the epidemic, LCD panel market prices rose for four months, or the panel giants in Japan and South Korea successively sold production lines, or the Chinese mainland listed companies frequently integrated acquisition, investment, and plant construction, all make the industry full of interesting.

LCD panel prices are already a fact. Since May this year, LCD panel prices have risen for four months in a row, making the whole industry chain dynamic. Why are LCD panels going up in price in a volatile 2020? The key factor lies in the imbalance between supply and demand.

The price of LCDS for large-size TVs of 70 inches or more hasn’t budged much. In addition, LTPS screens and AMOLED screens used in high-end phones have seen little or no increase in price.

As for October, LCD panel price increases are expected to moderate. The data shows that in October 32 inches or 2 dollars; Gains of 39.5 to 43 inches will shrink to $3;55 inches will fall back below $10; The 65-inch gain will narrow to $5.

During the epidemic, people stayed at home and had no way to go out for entertainment. They relied on TV sets, PCS, and game consoles for entertainment. After the resumption of economic work and production, the market of traditional home appliances picked up rapidly, and LCD production capacity was quickly digested.

However, due to the shutdown of most factories lasting 1-2 months during the epidemic period, LCD panel production capacity was limited, leading to insufficient production capacity in the face of the market outbreak, which eventually led to the market shortage and price increase for 4 consecutive months.

In fact, the last round of price rise of LCD panels was from 2016 to 2017, and its overall market price has continued to fall since 2018. Even in 2019, individual types have fallen below the material cost, and the whole industry has experienced a general operating loss. As a result, LCD makers have been looking for ways to improve margins since last year.

A return to a reasonable price range is the most talked about topic among panel makers in 2019, according to one practitioner. Some manufacturers for the serious loss of the product made the decision to reduce production or even stop production; Some manufacturers planned to raise the price, but due to the epidemic in 2020, the downstream demand was temporarily suppressed and the price increase was postponed. After the outbreak was contained in April, LCD prices began to rise in mid-to-late May.

In fact, the market price of LCD panels continued to decline in 2018-2019 because of the accelerated rise of China’s LCD industry and the influx of a large number of local manufacturers, which doubled the global LCD panel production capacity within a few years, but there was no suitable application market to absorb it. The result of excess capacity is oversupply, ultimately making LCD panel prices remain depressed.

Against this background, combined with the impact of the epidemic in 2020, the operating burden of LCD companies in Japan and South Korea has been further aggravated, and it is difficult to make profits in the production of LCD panels, so they have to announce the withdrawal of LCD business.

business in June 2022. In August, Sharp bought JDI Baishan, a plant in Ishikawa prefecture that makes liquid crystal display panels for smartphones. In early September, Samsung Display sold a majority stake in its SUZHOU LCD production plant to Starlight Electronics Technology, a unit of TCL Technology Group. LGD has not only pulled out of some of its production capacity but has announced that it will close its local production line in 2020. According to DSCC, a consultancy, the share of LCD production capacity in South Korea alone will fall from 19% to 7% between 2020 and 2021.

It is worth mentioning that in industry analysis, in view of the fact that Korean companies are good at using “dig through old bonus – selling high price – the development of new technology” the cycle of development mode, another 2020 out of the LCD production capacity, the main reason may be: taking the advantage of China’s expanding aggressively LCD manufacturers, Korean companies will own LCD panel production line hot sell, eliminating capacity liquid to extract its final value, and turning to the more profitable advantage of a new generation of display technologies, such as thinner, color display better OLED, etc. Samsung, for example, has captured more than 80% of the OLED market with its first-mover advantage.

From the perspective of production capacity, the launch of LCD tracks by major manufacturers in Japan and South Korea must reduce some production capacity in the short term, which to some extent induces market price fluctuations. In the long run, some of the Japanese and Korean LCD production capacity has been bought by Chinese manufacturers, coupled with frequent investment in recent years, the overall capacity is sure to recover as before, or even more than before. But now it will take time to expand the production layout, which more or less will cause supply imbalance, the industry needs to be cautious.

The LCD panel industry started in the United States and then gradually moved to Japan, South Korea, China, and Taiwan. At present, the proportion of production capacity in The Chinese mainland has reached 52% in 2020, and there are leading LCD panel products in China represented by BOE, Huxing Optoelectronics. Meanwhile, the production capacity layout of BOE, Huike, Huxing Optoelectronics, and other manufacturers has been basically completed, making industrial integration a necessity.

On the one hand, South Korean enterprises out of the LCD track, the domestic factory horse enclosure, plant expansion action. While LCDs may not sell as well as “upstart” flexible screens, respondents believe they are still strong enough in the traditional home appliance market to warrant continued investment. Zhao Bin, general manager of TCL Huaxing Development Center, has said publicly that the next-generation display technology will be mature in four to five years, but the commercialization of products may not take place until a decade later. “LCD will still be the mainstream in this decade,” he said.

On the other hand, there is no risk of neck jam in China’s LCD panel industry, which is generally controllable. In mainland China, there will be 21 production lines capable of producing 32-inch or larger LCD panels by 2021, accounting for about two-thirds of the global total. In terms of the proportion of production capacity, the Chinese mainland accounted for 42% of the global LCD panel in 2019, 51% this year, and will continue to climb to 63% next year.

Of course, building factories and expanding production cannot be accomplished overnight. In the process of production capacity recovery, it is predicted that there will be several price fluctuations, and the cost may be passed on to the downstream LCD panel manufacturers or consumers when the price rises greatly, which requires continuous attention.

I’m hearing from some industry friends that LCD display panel prices are rising – which on the surface likely seems incongruous, given the economic slowdown and widespread indications that a lot of 2020 and 2021 display projects went on hold because of COVID-19.

On the other hand, people are watching a lot more TV, and I saw a guy at Costco the other day with two big-ass LCD TVs on his trolley. And a whole bunch of desktop monitors were in demand in 2020 to facilitate Work From Home. So demand for LCD displays is up outside of commercial purposes.

Continuing strong demand and concerns about a glass shortage resulting from NEG’s power outage have led to a continuing increase in LCD TV panel prices in Q1. Announcements by the Korean panel makers that they will maintain production of LCDs and delay their planned shutdown of LCD lines has not prevented prices from continuing to rise.

Panel prices increased more than 20% for selected TV sizes in Q3 2020 compared to Q2, and by 27% in Q4 2020 compared to Q3, and we now expect that average LCD TV panel prices in Q1 2021 will increase by another 9%.

Does that mean they will stop buying and face losing market share to those that are willing to pay higher prices to see unit volume growth? Eventually, but heading into the holidays it doesn’t seem likely this year, so we expect TV panel prices to rise again in December.

With a lot of the buyer market for digital signage technology financial wheezing its way into 2021, rising hardware prices are likely even less welcomed than in more normal times. But the prices for display hardware, in particular, are dramatically lower they were five years ago, and even more so looking back 10-15 years.

LG Display (LGD) will end the production of TV LCD panels at its P7 plant in Paju, South Korea, ahead of the original schedule in late January 2023, ending production of all such panels in South Korea, according to South Korea-based Aju Business Daily.

The panel industry is going through its worst downturn in a decade, caused by a sharp decline in demand in a short period of time. With major losses in 2022 and ongoing global uncertainties, the industry expects market recovery to be slow in 2023.

The industrial and public displays market has been growing from 7.6% of total market share in 2020 to 8.5% in 2021, and is expected to grow to 8.7% in 2022. Chinese panel makers have taken the lead for industrial display, in which Tianma tops the first place with 37% share in 2022, followed by BOE, AUO, Innolux and Truly, according to Omdia.

Global factors have had a major impact on LCD panel demand in 2022, causing industry players to expect demand to remain weak through the first half of 2023. Taiwan-based LCD panel makers such as AU Optronics (AUO) and Innolux are making moves to boost their market share by targeting smart markets and creating value-added services.

Though demand for LCD panels has nosedived in 2022, automotive displays will drive global LCD panel output value to continually increase to over US$70 billion in 2030, according to DIGITIMES Research director Tony Huang.

LCD panel maker AUO has disclosed it has cooperated with VFX (visual effects) specialist Renovatio Pictures to set up an LED virtual studio at Central Motion Picture"s film studio in Taipei to provide integrated services consisting of shooting scenes and stages, content production, technical counseling and rental equipment.

As global demand for XR (extended reality) headsets is expected to take off in 2023, microLED panels tend to surpass LCD and OLED panels to become mainstream, specifically for XR devices, according to South Korea-based Money Today.

LCD panel maker Innolux has reported consolidated revenue of NT$16.182 billion (US$529.25 million) for November, growing 3.61% sequentially but slipping 39.15% on year.

Samsung Electronics continues to hold the top spot in the global TV market in terms of unit sales, while LG Electronics and China-based Hisense and TCL strive for second place, according to market sources.

LG Display (LGD) will bring to an end production of LCD panels at its P7 plant in Paju, northern South Korea, sooner in mid-December 2022 or later at the end of the month, and thus end production of all LCD panels in South Korea, according to South Korea-based TheElec.

AUO is mulling building a backend assembly plant for automotive backend modules in the US or Mexico, with a decision to be made public next year, according to company chairman Paul Peng.

LCD panel maker AUO has announced its consolidated revenue in November reached NT$17.48 billion (US$571.26 million), up by 1.7% month-over-month but down 43.4% year-over-year.

HKC has LCD panel production bases in Chongqing and Mianyang in southwest China and Chuzhou in the east, and has formed a vertical industrial chain including LCD panels, light-emitting diode backlights, LCD modules and whole machine production.

The Shenzhen-based firm ranked third among Chinese companies for global display panel shipments last year, after BOE Technology Group and TCL China Star Optoelectronics Technology, according to data from Sigmaintell Consulting. HKC also accounted for 10.1 percent of the global television screen market, and 6.5 percent of the global display panel market.

As a relative latecomer to the industry, HKC initially offered low-priced products. As its position in the market stabilized in recent years, it has gradually raised prices and prepared to go public.

But global LCD panel prices have been falling, posing a challenge for HKC"s short-term business outlook. According to research firm Omdia, since last September the average price of 43-inch LCD panels has dropped 46 percent, and for 55- and 65-inch panels prices are down 34 percent.

“Current prices pose a big challenge for all panel makers,” Zhang Hong, director of TV research at Sigmaintell, told Yicai Global, adding that losses are growing at some manufacturers of LCD TV panels.

Cinno Research’s Chief Analyst Zhou Hua told Yicai Global that HKC"s LCD panel production line has had a lot of support from the local government, but in the current economic environment it is harder to secure such high subsidies.

HKC is more vulnerable to market cycles than BOE or TCL CSOT and is has less business flexibility than smaller producers, Zhou said, which is why the firm needs new sources of financing by going public.

From the perspective of global macroeconomic performance, it is not difficult to find by tracking the IMF’s forecast data on global GDP growth, that the economic performance of various regions in the world has been significantly differentiated in the post-epidemic era. The relatively strong economic performance of developed economies has certain support for the global consumer electronics market, especially the demand for high-end products, while the performance of emerging economies is relatively less optimistic, showing a trend of differentiation.

In this context, the global consumer electronics market where LCD is located is affected in many ways. First of all, due to the pull of the economy, purchasing power can still remain strong, especially the commercial and education market demand in the North American market will remain relatively strong. There is also a downside. Due to the promotion of consumer demand in the early stage, especially the resident assistance policy, the phenomenon of demand overdraft has already occurred, and consumer demand will be affected by demand overdraft, and the future trend is not optimistic.

From the perspective of LCD panel shipment performance, according to the shipment performance of the four major mainstream LCD applications such as TV, Monitor, Notebook, and Mobile in 2021, it shows the characteristics of “weak at both ends and strong in the middle”. Looking forward to 2022, the shipments of LCD for mobile phones are expected to remain relatively stable, while the shipments of large-size LCD panel applications such as Notebook, Monitor, and TV have experienced a year-on-year decline of varying degrees due to the fading dividends of the epidemic, but the shipment area of large-size panels has performed significantly better than performance in terms of shipments. From the perspective of notebook LCD shipment performance, it is expected that the shipment area in 2022 will decrease by 3.8% year on year, and the decline in the area is lower than the decline in quantity. The shipment area of Monitor and TV panels can still maintain relatively good growth. The area growth brought about by large size is still the most effective way for LCD panel manufacturers to reduce production capacity.

Among large-size LCD applications, TV panels are the absolute main force in reducing production capacity. From the perspective of the shipment area in the first three quarters of 2021, TV panel shipments account for more than 70% of all application panel shipments. In the future, it is expected that the global display panel market will still exhibit cyclical fluctuations, and TV panels will still undertake the important task of reducing production capacity. Since the second half of 2020, the LCD panel price, especially the increase in the price of large-size panels, has driven the profitability of LCD manufacturers to improve significantly. At present, manufacturers are still in a period of high profitability. Of course, it cannot be ignored that the price of large-size panels continues to decline. It is expected to face profit challenges in 2022. The profitability of LCD manufacturers will face differentiation, and some manufacturers may fall into loss expectations.

From the perspective of production capacity investment, investment in the global display panel market will show two characteristics: first, the pace of investment in new LCD lines by panel manufacturers has slowed down significantly; second, investment in OLED will remain active, but the direction of investment in OLED will change. Significant changes occurred.

First of all, it turns out that panel manufacturers are very active in investing in small-sized OLEDs, especially flexible OLEDs. The future investment strategy will shift from small-sized to medium-to-large-sized, and from low-generation (6th generation) to mid-to-high-generation lines. According to statistics, it is expected that three 8.5-generation OLED production lines will usher in mass production by 2025. At the same time, the change of OLED investment direction will also change from the original Flexible OLED to multi-technology, WOLED will continue to expand production, and QD-OLED production capacity will continue to increase. At present, panel manufacturers represented by Korean factories（SAMSUNG & LG） are very active in investing in Hybrid OLED. Statistics show that it is expected that the global OLED display panel production area will continue to grow by more than 10% by 2025, especially with the gradual mass production of high-generation OLED production lines. It is expected that QD-OLED and Hybrid OLED will play an increasingly important role in the global OLED panel market from 2023.

Although the investment pace of panel manufacturers in LCD panels has slowed down, Chinese panel manufacturers still maintain a positive strategy for the expansion of existing production lines. The expansion of production will also drive the continuous growth of the supply area of LCD panels. According to statistics, it is expected that the global display panel production capacity will reach a high-speed growth of 12% year-on-year in 2022, and the overall production capacity growth rate will reach the largest increase since 2013. Therefore, it can be predicted that the pressure on panel manufacturers to reduce production capacity in 2022 should not be underestimated.

How will the global display industry pattern evolve? In 2021, an obvious “one superpower, many strong” competition pattern has been formed. BOE maintains a very clear leading edge in all applications. The market share of each application market has exceeded 20% in terms of the number of shipments and shipment area, and the leading edge is obvious. There is an imbalance in other panel manufacturers. Most manufacturers have certain competitive advantages in some fields, but the overall competitiveness is still not strong. For example, TCL (CSOT) and HKC can maintain a market share of about 15% in the TV panel market. It cannot be ignored that the performance of the IT application panel and the Mobile application panel is still relatively weak. Under this competitive landscape, it is expected that Chinese panel manufacturers including TCL and HKC will adopt active strategies for LCD applications other than TV in the future, including the expansion of existing production lines, and strive for opportunities to increase investment in new production lines.

Let’s look at the evolution of the competitive landscape of OLED. At present, OLED technology, especially in mobile phone applications, has gradually gained popularity. According to statistics, the overall proportion of OLED in the global smartphone shipments will reach nearly 40% in 2021, and will continue to grow in the future. The proportion will be close to 50% before 2025. In particular, the penetration rate of flexible OLEDs in mobile phone applications has shown a trend of significant growth. In 2021, the overall proportion will reach 22%, and it is expected that this proportion will continue to increase to 33% by 2023. From the perspective of panel makers, currently, flexible OLEDs are still dominated by Korean factories. Samsung Display will account for more than 50% of the entire global flexible OLED market in 2021. Although it will shrink due to the increase in production capacity from Chinese panel makers, it will also shrink in 2022. But it will still maintain a share of about 50% in 2022. Chinese panel manufacturers are particularly active in capacity expansion, especially BOE, TCL, and Visionox are all actively deploying flexible OLEDs. It is expected that the market share in 2022 will increase significantly compared to 2021.

In 2022, the overall demand for TV panels is not optimistic, but there are structural opportunities. The famous brand’s overall stocking strategy tends to be conservative, which affects the number of panel shipments to maintain a year-on-year downward trend. However, thanks to the accelerated promotion of large-scale size, the shipment area continues to increase. At the same time, from the perspective of subdivisions, although the performance of the 8K LCD market is mediocre, the shipment scale of OLED panels and high refresh rate panels will expand significantly, which is worth looking forward to. Especially in 2022, Samsung Electronics and other leading TV manufacturers will join the OLED camp, and Samsung Electronics will also carry out active and strategic cooperation with LGD in the WOLED field, which is expected to drive the global OLED TV and OLED TV panel shipments to continue to expand. According to statistics, the number of OLED TV panel shipments in 2021 will reach 7.6 million units, a year-on-year increase of 72.2%. It is estimated that the global OLED TV panel shipment scale will exceed 10 million units in 2022, with a year-on-year growth rate of 47.1%.

In 2022, the overall LCD TV supply and demand environment will be loose. In the first quarter, there will be excess supply in the off-season, and panel prices will continue to decline, but the decline will gradually narrow. In the second quarter, supply and demand will tend to balance, and panel prices are expected to stabilize.

Entering the post-epidemic era, the global displayer (monitor) consumer demand will inevitably fall, but because of the good support of commercial demand, the overall displayer demand remains at a historically high level. There is a good willingness to pay for new display technologies, which will promote the continuous structural upgrading of the displayer market.

The gradual increase in the production capacity of displayers, coupled with the growth of LCD panel manufacturers in monitor display supply planning, is expected to maintain a growth trend in the supply trend of display panels in 2022. Combined with the changes in the demand structure, the overall supply and demand situation in 2022 will be relatively loose. Therefore, it will lead to a continuous decline in the cost of displayer panels in at least the first half of 2022. Affected by the demand structure, the upgrade momentum of the monitor market will slow down, but there are still representative markets with growth potential, such as the Gaming monitor, which is driven by the dual engines of 240Hz and OLED, and the Gaming displayer market in 2022 can still maintain positive growth; Another example is Ultrawide displayer. Under the influence of the active strategy of suppliers, the joint force of the entire supply chain will promote the positive growth of the Ultrawide displayer market in 2022; the Curved surface LCD market will enter a state of slow growth, with the hope that the market can find new growth momentum.

With the growth of Notebook LCD production capacity, especially the mid-to-high-end production capacity, the supply shortage of Notebooks will be significantly eased in 2022. From the purchasing point of view, there is a certain risk of saturation in the notebook market in 2022. Therefore, in 2022, we should be alert to the risk of oversupply. In this process, there is still a positive side, such as the accelerated trend of large-scale LCD size and structural upgrading, etc. Accelerating this change will have a better impact on the market.

By sorting out the development potential of 5 core technologies such as Gaming, OLED, LTPS, Oxide, and Mini-LED in LCD panel applications for Notebook, we believe that on the whole, in 2022, the situation of the coexistence of multiple new notebook technologies and development and competition will become more obvious. In the process, the technologies with the greatest development potential in 2022 are Gaming, OLED, and LTPS; Oxide has slowed down in the past 2 years due to the influence of certain factors, but we believe that after 2023, Oxide will usher in new. The development of Mini-LED is limited in the future due to the high cost.

In 2021, under the panel supply pattern with the participation of BOE and Samsung Display, and more players, the competition in the smartphone panel market will show a hot trend, and the integration of the industry chain will also accelerate. In terms of technology types, the trend of the proportion of each technology type shows a differentiation phenomenon. Among them, the demand for flexible OLED continues to grow driven by the supply side. It is estimated that by 2025, the market share of flexible OLED smartphone panels will reach about 33%; In addition to the growth of flexible OLEDs, the penetration rates of a-Si（IPS）, LTPS, rigid OLEDs, etc. are all in a downward trend, forming a “hamburger” shape market.

The foldable smartphone has great growth potential in the next 3 years. Statistics show that the global shipments of folding display panels will be close to 13 million units in 2021, and it is expected to be close to 80 million units by 2025. The compound growth rate from 2019 to 2025 will reach About 88%, showing a trend of rapid growth. From the perspective of manufacturers, Samsung Display, a Korean manufacturer, will continue to dominate for a long time, and the global foldable display panel market share will stabilize at around 80%. More and more Chinese panel manufacturers are participating, such as BOE, TCL, Visionox, and other manufacturers, but based on the current capacity planning and overall technical strength of Chinese panel manufacturers, we believe that the scale of shipments is still relatively limited, and the proportion of Chinese panel manufacturers will be around 20%.

In terms of technology, the development trend of the in-vehicle displays toward large size and high resolution is also very clear. At the same time, in the future, there will be more and more car brands and models equipped with OLED. However, considering that it is more difficult to apply vehicle display technology, it is estimated that by 2025, the shipment of OLED vehicle displays will be about 3 million pcs. Mini-LED backlight products have been mass-produced in other applications, but currently, there are relatively few applications in the automotive field. There are already models released, and mass production is expected to be achieved in 2022. Mini-LED backlight is an upgrade of a-Si LCD, and each panel factory has a layout. Therefore, we expect that by 2025, the shipment of Mini-LED backlight vehicle display products will reach about 4 million pieces, with rapid growth.

In summary, the LCD applications and market in 2022 will see significant technological advances alongside the challenges. As an LCD supplier and manufacturer, VISLCD is optimistic about the future of LCD development and will maintain stable shipments and reasonable market prices, regardless of whether the market is hot or the demand is slow so that we can move forward together with our customers.