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Chinese display panel makers accounted for nearly half of the share in the global liquid crystal display TV panel market in the first half of this year, dominating the industry.

Beijing-based market researcher Sigmaintell Consulting said shipments of LCD TV panels worldwide totaled 140 million pieces in the year"s first half, up 3.6 percent compared with the same period a year ago.

The supply of TV panels though has surpassed demand due to the slowdown in the global economy and weaker consumer purchasing power. Manufacturers are facing severe challenges from falling panel prices, the Sigmaintell report said.

The shipment of BOE"s LCD TV panels stood at 27.6 million in the Jan-June period while LG Display followed with 22.7 million, down 4.5 percent year-on-year. Innolux Display Group was in third place, having shipped 21.9 million units.

Shenzhen China Star Optoelectronics Technology Co Ltd, a subsidiary of consumer electronics giant TCL Corp, ranked fourth, shipping 19.3 million pieces of TV panels. Chinese panel makers accounted for a 45.8 percent share in the global LCD TV panel market.

Sigmaintell estimated that the gap between supply and demand would widen further, and the panel market may face a long-term risk of oversupply. The industry may have to undergo a reshuffle given fierce market competition, it said.

The panel makers must reduce costs, optimize their internal structures, promote technological innovation and explore more innovative applications, the report by the consultancy said.

Separately, BOE"s Gen 10.5 TFTLCD production line has entered operation in Hefei, Anhui province. The plant will produce high-definition LCD screens of 65 inches and above.

CSOT also announced in November last year that its Gen 11 TFT-LCD and active-matrix OLED production line had officially began operation. The project will produce 43-inch, 65-inch and 75-inch liquid crystal display screens.

China is expected to replace South Korea as the world"s largest flat-panel display producer in 2019, a report from the China Video Industry Association and the China Optics and Optoelectronics Manufacturers Association said.

"The average size of TV panels is likely to increase 1.4 inches in 2019. The 65-inch dimension will become the most popular size of TV," Li Yaqin, general manager of Sigmaintell, said while adding the 65-inch TV will become the mainstream screen in people"s living rooms in the future.

Compared with traditional LCD display panels, OLED has a fast response rate, wide viewing angles, high-contrast images and richer colors. It is thinner and can be made flexible.

Chinese TV panel manufacturers are investing heavily in large-size screens with high-definition and cutting-edge technologies, a move that China"s display panel industry hopes will help it to make headway against overseas competitors.

Shipments of liquid crystal display (LCD) TV panels worldwide totaled 284 million last year, up 8.4 percent year-on-year, according to a report released by Beijing-based market researcher Sigmaintell Consulting.

Affected by the slowdown in the global economy, and consumers" limited purchasing power, TV panel supply has surpassed demand. Manufacturers are facing severe challenges due to falling panel prices, the report said.

BOE Technology Group Co Ltd, a leading domestic display producer, topped the global list for LCD TV panel shipments, shipping 54.3 million TV panels last year, up 27 percent year-on-year. LG Display followed with 48.6 million panels and Innolux Display Group with 45.1 million.

Sigmaintell estimated that large-screen TVs will witness explosive growth, and the proportion of 65-inch panels will increase to 7.3 percent in 2019, fuelled by the increased demand from both the consumer and commercial markets.

At the same time, super-large panels, at 75 to 86 inches, will also usher in rapid growth, injecting new vitality into the market this year, the report forecast.

After BOE"s Gen 10.5 TFT-LCD production line entered operation in Hefei, Anhui province, in December 2017, the company"s production capacity increased by over 40 percent in 2018 year-on-year, according to Sigmaintell. The plant produces high-definition LCD screens of 65 inches and above.

BOE announced in November it had developed China"s first 55-inch 4K organic LED display using inkjet printing technology, which will break South Korea"s monopoly in the field of large-sized OLED panels.

"The traditional LCD TV market is almost saturated and OLED TVs with innovative designs are in line with ongoing consumption upgrading," said Dong Min, vice-president of market consultancy All View Cloud.

Shenzhen China Star Optoelectronics Technology Co Ltd, a subsidiary of Chinese consumer electronics giant TCL Corp, said in November its Gen 11 TFT-LCD and active-matrix OLED production line had officially entered operation. The facility produces 43-inch, 65-inch and 75-inch LCD screens.

In addition to large screens, the company started to build a sixth-generation low-temperature polysilicon active-matrix OLED display panel production line in Wuhan, Hubei province, in 2017.

With an investment of 35 billion yuan ($5.17 billion), the facility will produce small and medium-sized high-resolution display panels that are flexible and foldable for high-end smartphones.

China is expected to replace South Korea as the world"s largest flat-panel display producer this year, according to a report from the China Video Industry Association and the China Optics and Optoelectronics Manufacturers Association.

Chen Lijuan, an analyst at Sigmaintell, said panel manufacturers should not just invest in production lines, but also pay more attention to the establishment of the whole supply chain, including raw materials, equipment and technology.