lcd panel price trend 2021 factory

The price of LCD display panels for TVs is still falling in November and is on the verge of falling back to the level at which it initially rose two years ago (in June 2020). Liu Yushi, a senior analyst at CINNO Research, told China State Grid reporters that the wave of “falling tide” may last until June this year. For related panel companies, after the performance surge in the past year, they will face pressure in 2022.

LCD display panel prices for TVs will remain at a high level throughout 2021 due to the high base of 13 consecutive months of increase, although the price of LCD display panels peaked in June last year and began to decline rapidly. Thanks to this, under the tight demand related to panel enterprises last year achieved substantial profit growth.

According to China State Grid, the annual revenue growth of major LCD display panel manufacturers in China (Shentianma A, TCL Technology, Peking Oriental A, Caihong Shares, Longteng Optoelectronics, AU, Inolux Optoelectronics, Hanyu Color Crystal) in 2021 is basically above double digits, and the net profit growth is also very obvious. Some small and medium-sized enterprises directly turn losses into profits. Leading enterprises such as BOE and TCL Technology more than doubled their net profit.

Take BOE as an example. According to the 2021 financial report released by BOE A, BOE achieved annual revenue of 219.31 billion yuan, with a year-on-year growth of 61.79%; Net profit attributable to shareholders of listed companies reached 25.831 billion yuan, up 412.96% year on year. “The growth is mainly due to the overall high economic performance of the panel industry throughout the year, and the acquisition of the CLP Panda Nanjing and Chengdu lines,” said Xu Tao, chief electronics analyst at Citic Securities.

In his opinion, as BOE dynamically optimizes its product structure, and its flexible OLED continues to enter the supply chain of major customers, BOE‘s market share as the panel leader is expected to increase further and extend to the Internet of Things, which is optimistic about the company’s development in the medium and long term.

TCL explained that the major reasons for the significant year-on-year growth in revenue and profit were the significant year-on-year growth of the company’s semiconductor display business shipment area, the average price of major products and product profitability, and the optimization of the business mix and customer structure further enhanced the contribution of product revenue.

“There are two main reasons for the ideal performance of domestic display panel enterprises.” A color TV industry analyst believes that, on the one hand, under the effect of the epidemic, the demand for color TV and other electronic products surges, and the upstream raw materials are in shortage, which leads to the short supply of the panel industry, the price rises, and the corporate profits increase accordingly. In addition, as Samsung and LG, the two-panel giants, gradually withdrew from the LCD panel field, they put most of their energy and funds into the OLED(organic light-emitting diode) display panel industry, resulting in a serious shortage of LCD display panels, which objectively benefited China’s local LCD display panel manufacturers such as BOE and TCL China Star Optoelectronics.

Liu Yushi analyzed to reporters that relevant TV panel enterprises made outstanding achievements in 2021, and panel price rise is a very important contributing factor. In addition, three enterprises, such as BOE(BOE), CSOT(TCL China Star Optoelectronics) and HKC(Huike), accounted for 55% of the total shipments of LCD TV panels in 2021. It will be further raised to 60% in the first quarter of 2022. In other words, “simultaneous release of production capacity, expand market share, rising volume and price” is also one of the main reasons for the growth of these enterprises. However, entering the low demand in 2022, LCD TV panel prices continue to fall, and there is some uncertainty about whether the relevant panel companies can continue to grow.

According to Media data, in February this year, the monthly revenue of global large LCD panels has been a double decline of 6.80% month-on-month and 6.18% year-on-year, reaching $6.089 billion. Among them, TCL China Star and AU large-size LCD panel revenue maintained year-on-year growth, while BOE, Innolux, and LG large-size LCD panel monthly revenue decreased by 16.83%, 14.10%, and 5.51% respectively.

Throughout Q1, according to WitsView data, the average LCD TV panel price has been close to or below the average cost, and cash cost level, among which 32-inch LCD TV panel prices are 4.03% and 5.06% below cash cost, respectively; The prices of 43 and 65 inch LCD TV panels are only 0.46% and 3.42% higher than the cash cost, respectively.

The market decline trend is continuing, the reporter queried Omdia, WitsView, Sigmaintel(group intelligence consulting), Oviriwo, CINNO Research, and other institutions regarding the latest forecast data, the analysis results show that the price of the TV LCD panels is expected to continue to decline in April. According to CINNO Research, for example, prices for 32 -, 43 – and 55-inch LCD TV panels in April are expected to fall $1- $3 per screen from March to $37, $65, and $100, respectively. Prices of 65 – and 75-inch LCD TV panels will drop by $8 per screen to $152 and $242, respectively.

“In the face of weak overall demand, major end brands requested panel factories to reduce purchase volumes in March due to high inventory pressure, which led to the continued decline in panel prices in April.” Beijing Di Xian Information Consulting Co., LTD. Vice general manager Yi Xianjing so analysis said.

“Since 2021, international logistics capacity continues to be tight, international customers have a long delivery cycle, some orders in the second half of the year were transferred to the first half of the year, pushing up the panel price in the first half of the year but also overdraft the demand in the second half of the year, resulting in the panel price began to decline from June last year,” Liu Yush told reporters, and the situation between Russia and Ukraine has suddenly escalated this year. It also further affected the recovery of demand in Europe, thus prolonging the downward trend in prices. Based on the current situation, Liu predicted that the bottom of TV panel prices will come in June 2022, but the inflection point will be delayed if further factors affect global demand and lead to additional cuts by brands.

With the price of TV panels falling to the cash cost line, in Liu’s opinion, some overseas production capacity with old equipment and poor profitability will gradually cut production. The corresponding profits of mainland panel manufacturers will inevitably be affected. However, due to the advantages in scale and cost, there is no urgent need for mainland panel manufacturers to reduce the dynamic rate. It is estimated that Q2’s dynamic level is only 3%-4% lower than Q1’s. “We don’t have much room to switch production because the prices of IT panels are dropping rapidly.”

Ovirivo analysts also pointed out that the current TV panel factory shipment pressure and inventory pressure may increase. “In the first quarter, the production line activity rate is at a high level, and the panel factory has entered the stage of loss. If the capacity is not adjusted, the panel factory will face the pressure of further decline in panel prices and increased losses.”

In the first quarter of this year, the retail volume of China’s color TV market was 9.03 million units, down 8.8% year on year. Retail sales totaled 28 billion yuan, down 10.1 percent year on year. Under the situation of volume drop, the industry expects this year color TV manufacturers will also set off a new round of LCD display panel prices war.

The current oversupply of liquid crystal display (LCD) panels is expected to continue through 2023, analyst firm TrendForce said in its latest forecast.

LCD panel prices had increased from June 2020 through the first half of 2021, the firm said, spurned by high demand for consumer electronics from Covid-19.

In supply, while LG Display could halt production at its P7 factory in Paju during the first quarter of next year, CSOT’s start of operation of its Gen 8.6 T9 factory could increase panel supply further than the current state, TrendForce said.

The analyst firm also said that LCD factories that use Gen 5 substrate or above could see their operation rate drop to 60% during the fourth quarter, which will be the lowest in ten years.

According to IMARC Group’s latest report, titled “TFT LCD Panel Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027”, the global TFT LCD panel market size reached US$ 157 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 207.6 Billion by 2027, exhibiting a growth rate (CAGR) of 4.7% during 2022-2027.

A thin-film-transistor liquid-crystal display (TFT LCD) panel is a liquid crystal display that is generally attached to a thin film transistor. It is an energy-efficient product variant that offers a superior quality viewing experience without straining the eye. Additionally, it is lightweight, less prone to reflection and provides a wider viewing angle and sharp images. Consequently, it is generally utilized in the manufacturing of numerous electronic and handheld devices. Some of the commonly available TFT LCD panels in the market include twisted nematic, in-plane switching, advanced fringe field switching, patterned vertical alignment and an advanced super view.

The global market is primarily driven by continual technological advancements in the display technology. This is supported by the introduction of plasma enhanced chemical vapor deposition (PECVD) technology to manufacture TFT panels that offers uniform thickness and cracking resistance to the product. Along with this, the widespread adoption of the TFT LCD panels in the production of automobiles dashboards that provide high resolution and reliability to the driver is gaining prominence across the globe. Furthermore, the increasing demand for compact-sized display panels and 4K television variants are contributing to the market growth. Moreover, the rising penetration of electronic devices, such as smartphones, tablets and laptops among the masses, is creating a positive outlook for the market. Other factors, including inflating disposable incomes of the masses, changing lifestyle patterns, and increasing investments in research and development (R&D) activities, are further projected to drive the market growth.

The competitive landscape of the TFT LCD panel market has been studied in the report with the detailed profiles of the key players operating in the market.

THANK YOU FOR VISITING ENERGYTREND (HEREINAFTER REFERRED TO AS "THE WEBSITE"). THE WEBSITE, OWNED AND OPERATED BY TRENDFORCE CORP. (HEREINAFTER REFERRED TO AS "TRENDFORCE"), WILL COLLECT, HANDLE, AND USE PRIVATE USER DATA IN ACCORDANCE WITH THE PERSONAL INFORMATION PROTECTION LAW (HEREINAFTER "PERSONAL INFORMATION LAW") AND THE WEBSITE"S PRIVACY POLICY. THE WEBSITE AIMS TO RESPECT AND PROTECT ALL USERS" ONLINE PRIVACY RIGHTS. IN ORDER TO UNDERSTAND AS WELL AS PROTECT YOUR RIGHTS, PLEASE READ THE FOLLOWING TERMS CAREFULLY:

1.1. THE POLICY COVERS THE HANDLING OF THE PRIVATE INFORMATION EACH USER SHARES WITH TRENDFORCE WHILE VISITING OUR WEBSITES. IF A DIFFERENT PRIVATE POLICY HAS BEEN REFERED TO FOR SPECIFIC TRENDFORCE WEBSITES AND SERVICES, THAT POLICY WILL REPLACE OR SUPPLEMENT THE PRIVACY POLICY MENTIONED IN THIS DOCUMENT. THIS POLICY ALSO COVERS INDIVIDUALS LEGALLY RESIDING IN OR ORGANIZATIONS LEGALLY BASED IN MEMBER COUNTRIES OF THE EUROPEAN UNION (EU) AND ARE SUBJECTED TO EU GENERAL DATA PROTECTION REGULATION (GDPR) WITH REGARD TO PROVISION OF SERVICES AND PERSONAL DATA PROTECTION.

1.2. THIS POLICY IS NOT APPLICABLE TO EITHER COMPANIES OTHER THAN TRENDFORCE AND ITS SUBSIDIARIES OR PERSONNEL NOT EMPLOYED OR AUTHORIZED BY TRENDFORCE AND ITS SUBSIDIARIES.

2.4. THE WEBSITE COLLECTS TRANSACTION DATA BETWEEN YOU AND TRENDFORCE AND FROM RELEVANT BUSINESS PARTNERS. THESE INCLUDE SPECIFIC PRODUCTS AND SERVICES THAT ARE DIRECTLY OBTAINED FROM THE WEBSITE.

b. THIS WEBSITE WILL NOTIFY YOU ON MATTERS RELATED TO YOUR PERSONAL DATA BY EMAIL, OR TRENDFORCE CORP. WILL NOTIFY YOU BY OTHER MEANS (SUCH AS VIA TELEPHONE). CLIENTS ARE FULLY RESPONSIBLE FOR PROVIDING AN UPDATED, VALID, AND DELIVERABLE EMAIL ADDRESS THAT CAN RECEIVE NOTIFICATION EMAILS FROM TRENDFORCE CORP.

EXCEPT AS OTHERWISE EXPRESSEDLY PROVIDED BY GDPR OR ORDERED BY THE LAWS OF A COMPETENT JURISDICTION, CLIENTS CAN USE CUSTOMER EMAILServiceGDPR@energytrend.comTO CONTACT THIS WEBSITE TO EXERCISE THEIR RIGHTS PERTAINING TO THEIR ACCOUNT USER NAMES, ACCOUNT USER DATA, SESSION COOKIES, AND OTHER FORMS OF ACCOUNT DATA RECORDS. THESE RIGHTS INCLUDE RIGHT TO ACCESS, RIGHT TO RECTIFICATION, RIGHT TO BE FORGOTTEN/DATA ERASURE, RIGHT TO RESTRICTION OF PROCESSING, RIGHT OF DATA PORTABILITY, RIGHT TO OBJECT, AND ETC. TO EXERCISE THESE RIGHTS, A CLIENT MUST INCLUDE LEGALLY VALID AND VERIFICABLE PROOFS OF PERSONAL IDENITIFICATION ALONG WITH HIS/HER REQUEST. FURTHEMORE, THE CLIENT ISSUING THE REQUEST TO EXERCISE THESE RIGHTS MUST HAVE FUFILLED VARIOUS LEGAL OBLIGATIONS ON HIS/HER PART BEFOREHAND. AFTERWARDS, TRENDFORCE WILL FULFILL THE CLIENTS’ REQUEST/PROVIDE RESOLUTIONS WITHIN REASONABLE TIME AND EFFORT.

LCD TV Panel Market is 2022 Research Report on Global professional and comprehensive report on the LCD TV Panel Market. The report monitors the key trends and market drivers in the current scenario and offers on the ground insights. Top Key Players are – Samsung Display, LG Display, Innolux Crop., AUO, CSOT, BOE, Sharp, Panasonic, CEC-Panda.

Global “LCD TV Panel Market” (2022-2028) the report additionally centers around worldwide significant makers of the LCD TV Panel market with important data, such as, company profiles, segmentation information, challenges and limitations, driving factors, value, cost, income and contact data. Upstream primitive materials and hardware, coupled with downstream request examination is likewise completed. The Global LCD TV Panel market improvement patterns and marketing channels are breaking down. In conclusion, the attainability of new speculation ventures is surveyed and in general, the research ends advertised.

Global LCD TV Panel Market Report 2022 is spread across 117 pages and provides exclusive vital statistics, data, information, trends and competitive landscape details in this niche sector.

The information for each competitor includes – Company Profile, Main Business Information, SWOT Analysis, Sales, Revenue, Price and Gross Margin, Market Share.

LCD displays utilize two sheets of polarizing material with a liquid crystal solution between them. An electric current passed through the liquid causes the crystals to align so that light cannot pass through them. Each crystal, therefore, is like a shutter, either allowing light to pass through or blocking the light. LCD panel is the key components of LCD display. And the price trends of LCD panel directly affect the price of liquid crystal displays. LCD panel consists of several components: Glass substrate, drive electronics, polarizers, color filters etc. Only LCD panel applied for TV will be counted in this report.

Due to the COVID-19 pandemic, the global LCD TV Panel market size is estimated to be worth USD 53490 million in 2021 and is forecast to a readjusted size of USD 53490 million by 2028 with a CAGR of 2.2% during the review period. Fully considering the economic change by this health crisis, by Size accounting for (%) of the LCD TV Panel global market in 2021, is projected to value USD million by 2028, growing at a revised (%) CAGR in the post-COVID-19 period. While by Size segment is altered to an (%) CAGR throughout this forecast period.

Global LCD TV Panel key players include Samsung Display, LG Display, Innolux Crop, AUO, CSOT, etc. Global top five manufacturers hold a share over 80%.

The global LCD TV Panel market is segmented by company, region (country), by Size and by Application. Players, stakeholders, and other participants in the global LCD TV Panel market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on sales, revenue and forecast by region (country), by Size and by Application for the period 2017-2028.

Global LCD TV Panel market analysis and market size information is provided by regions (countries). Segment by Application, the LCD TV Panel market is segmented into United States, Europe, China, Japan, Southeast Asia, India and Rest of World. The report includes region-wise LCD TV Panel market forecast period from history 2017-2028. It also includes market size and forecast by players, by Type, and by Application segment in terms of sales and revenue for the period 2017-2028.

The report introduced the LCD TV Panel basics: definitions, classifications, applications and market overview; product specifications; manufacturing processes; cost structures, raw materials and so on. Then it analyzed the world’s main region market conditions, including the product price, profit, capacity, production, supply, demand and market growth rate and forecast etc. In the end, the report introduced new project SWOT analysis, investment feasibility analysis, and investment return analysis.

LCD TV Panel market size competitive landscape provides details and data information by players. The report offers comprehensive analysis and accurate statistics on revenue by the player for the period 2017-2021. It also offers detailed analysis supported by reliable statistics on revenue (global and regional level) by players for the period 2017-2021. Details included are company description, major business, company total revenue and the sales, revenue generated in LCD TV Panel business, the date to enter into the LCD TV Panel market, LCD TV Panel product introduction, recent developments, etc.

The report offers detailed coverage of LCD TV Panel industry and main market trends with impact of coronavirus. The market research includes historical and forecast market data, demand, application details, price trends, and company shares of the leading LCD TV Panel by geography. The report splits the market size, by volume and value, on the basis of application type and geography. Report covers the present status and the future prospects of the global LCD TV Panel market for 2017-2028.

Global LCD TV Panel Market report forecast to 2028 is a professional and comprehensive research report on the world’s major regional market conditions, focusing on the main regions (North America, Europe and Asia-Pacific) and the main countries (United States, Germany, United Kingdom, Japan, South Korea and China).

To Know How COVID-19 Pandemic Will Impact LCD TV Panel Market/Industry- Request a sample copy of the report-https://www.researchreportsworld.com/enquiry/request-covid19/21019731

The report offers exhaustive assessment of different region-wise and country-wise LCD TV Panel market such as U.S., Canada, Germany, France, U.K., Italy, Russia, China, Japan, South Korea, India, Australia, Taiwan, Indonesia, Thailand, Malaysia, Philippines, Vietnam, Mexico, Brazil, Turkey, Saudi Arabia, U.A.E, etc. Key regions covered in the report are North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

For the period 2017-2028, the report provides country-wise revenue and volume sales analysis and region-wise revenue and volume analysis of the global LCD TV Panel market. For the period 2017-2021, it provides sales (consumption) analysis and forecast of different regional markets by Application as well as by Type in terms of volume.

What are the market opportunities and threats faced by the vendors in the global LCD TV Panel market? What industrial trends, drivers, and challenges are manipulating its growth?

With tables and figures helping analyze worldwide Global LCD TV Panel market trends, this research provides key statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.

Prices for all TV panel sizes fluctuated and are forecast to fluctuate between 2020 and 2022. The period from March 2020 to July 2021 saw the biggest price increases, when a 65" UHD panel cost between 171 and 288 U.S. dollars. In the fourth quarter of 2021, such prices fell and are expected to drop to an even lower amount by March 2022.Read moreLCD TV panel prices worldwide from January 2020 to March 2022, by size(in U.S. dollars)Characteristic32" HD43" FHD49"/50" UHD55" UHD65" UHD------

DSCC. (January 10, 2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph]. In Statista. Retrieved February 08, 2023, from https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars)." Chart. January 10, 2022. Statista. Accessed February 08, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. (2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars). Statista. Statista Inc.. Accessed: February 08, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "Lcd Tv Panel Prices Worldwide from January 2020 to March 2022, by Size (in U.S. Dollars)." Statista, Statista Inc., 10 Jan 2022, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC, LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) Statista, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/ (last visited February 08, 2023)

LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph], DSCC, January 10, 2022. [Online]. Available: https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

The viewable image on an LCD is created by a liquid crystal. Liquid crystal displays are ultra-thin technology display panels that are typically utilised in mobile video games, TVs, and laptop computer screens.

LCD technologies enable screens to be significantly thinner. Commodity monitors made for use in an office or home have a shorter lifespan in the rigorous environment of the production floor.

A factory floor’s typical levels of dust and debris, harsh operating temperatures, and shock and vibration are all factors that industrial automation LCD display panels are made to withstand.

The global factory automation LCD panel market accounted for $XX Billion in 2021 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2022 to 2030.

True-flat LCD monitors of the FPM-200 series have front panels that are IP66-rated for protection against entrance of water and dust. As a result, the monitors can survive intensive cleaning with high-pressure water jets, making them the perfect choice for industrial settings with challenging operating circumstances. The finest price-performance ratio for a dependable industrial-grade, touch-controlled display solution that can handle a variety of industrial and IoT-related applications is provided by PM-200 monitors.

For monitoring, visualising, and enhancing standard production processes, Emerson has launched its new line of RXi industrial display and panel PC devices. Emerson’s programmable logic control (PLC), programmed automation control (PAC), and third-party control systems are all compatible with RXi industrial displays.

It may seem odd in the face of stalled economies and stalled AV projects, but the costs of LCD display products are on the rise, according to a report from Digital Supply Chain Consulting, or DSCC.

Demand for LCD products remains strong , says DSCC, at the same time as shortages are deepening for glass substrates and driver integrated circuits. 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.

I assume, but absolutely don’t know for sure, that panel pricing that affects the much larger consumer market must have a similar impact on commercial displays, or what researchers seem to term public information displays.

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, we now expect that average LCD TV panel prices in Q1 2021 will increase by another 12%.

The first chart shows our latest TV panel price update, with prices increasing across the board from a low in May 2020 to an expected peak in May/June of this year. Last month’s update predicted a peak in February/March. However, our forecast for the peak has been increased and pushed out after AGC reported a major accident at a glass plant in Korea and amid continuing problems with driver IC shortages.

The inflection point for this cycle, the month of the most significant M/M price increases, was passed in September 2020, and the price increases have been slowing down each month since then, but the January increase averaged 4.1%. Prices in February 2021 have reached levels last seen exactly three years ago in February 2018.

Prices increased in Q4 for all sizes of TV panels, with massive percentage increases in sizes from 32” to 55” ranging from 28% to 38%. Prices for 65” and 75” increased at a slower rate, by 19% and 8% respectively, as capacity has continued to increase on those sizes with Gen 10.5 expansions.

Prices for every size of TV panel will increase in Q1 at a slower rate, ranging from 5% for 75” to 16% for 43”, and we now expect that prices will continue to increase in Q2, with the increases ranging from 3% to 6% on a Q/Q basis. We now expect that prices will peak in Q2 and will start to decline in Q3, but the situation remains fluid.

All that said, LCD panels are way less costly, way lighter and slimmer, and generally look way better than the ones being used 10 years ago, so prices is a relative problem.

In 2021, LCD panel prices are expected to climb in 1Q, remain flat in 2Q, and decline from 3Q. Backed by ongoing facility expansions, Chinese LCD panel makers should see a continuing rise in M/S. In addition, a recent blackout at the Japanese factory of NEG, a glass substrate maker, should also benefit Chinese firms.

LCD panel prices, which ended high in 2020, are expected to continue rising in 1Q21 on an anticipated decrease in glass substrate supply. On Dec 10, a power outage occurred at NEG’s Takatsuki plant in Japan. With normalization at the Takatsuki plant expected in 1Q21, domestic and Taiwanese panel makers’ sourcing of glass substrate is unlikely to proceed smoothly in the near future. In 2Q21, an acceleration in panel production alongside normalized supply of glass substrate should prevent LCD panel price growth. The rate of glass substrate supply excess is forecast to widen from 0.5% in 1Q21 to 3.6% in 2Q21.

LCD panel prices are forecast to decline from 3Q21, as supply should exceed demand. We expect supply excess for LCD panels to reach 3.2% in 3Q21 and 3.4% in 4Q21 on the back of ongoing production expansion at Chinese manufacturers.

Chinese LCD panel makers are to continue expanding their production capacity, centering on 8G-and-above facilities, in a bid to increase M/S. Given Korea’s withdrawal from the LCD arena, we expect the global number of LCD production facilities (8G or higher) to fall from 32 in 2020 to 31 in 2021 to 30 in 2022. On the other hand, with Chinese panel makers ramping up investment, the portion of Chinese manufacturers is to increase from 63% in 2020 to 68% in 2021 to 78% in 2022, with China coming to claim a market-leading position.

Of note, Chinese panel makers are highly likely to see M/S expansion in 1Q21, as they are insulated from the effects of NEG’s Takatsuki power outage. Chinese companies’ glass substrate supply chain has diversified to encompass Corning, AGC, and NEG (China, Xiamen plant).

In a series of 2021 predictions in a report from Bob O’Brien of the Digital Supply Chain (DSCC) he suggests that LCD television panel prices will remain higher in 2021 than in 2020 at least until Q4 this year.

O’Brien says: “2020 started with panel prices rising after Samsung and LGD announced that they would shut down LCD capacity to shift to OLED. Then the pandemic hit and led to panicked price reductions as everyone feared a global recession, until it became clear that stay-at-home orders and lockdowns resulted in increased demand for TVs. Prices started to increase in June, slowly at first and then accelerating in Q4 to end the year up more than 50 per cent.”

“While Q1 would normally be the beginning of a seasonal slowdown for TV demand, we do not expect that panel prices will decline because of fears of a glass shortage resulting from a power outage at NEG coupled with Gen 10.5 glass problems at Corning. By the end of Q1, though, glass supply will be restored and the seasonal falloff in demand in the spring and summer months will lead panel prices to fall,” he added.

“The big increases in LCD TV panel prices have led Samsung and LG Display to change their plans and extend the life of LCD lines. These companies are making the sensible decision that they should continue to run lines that bring in cash, but the spectre of shutdown will remain hanging over the industry. Although prices will fall, they will remain above 2020 levels through the summer and panel prices are likely to stabilize in the 2nd half of 2021 at levels substantially higher than their all-time lows of Q2 2020.”

He also adds that this time last year saw most observers suggesting – and anticipating – that LCD displays were ‘old technology’ and investment in LCD output would slow. “The two Korean panel makers, who once dominated the LCD industry, announced that they were withdrawing from LCD to focus on OLED. Investment in China increasingly focused on OLED. During 2020, it became increasingly clear that this assessment was premature, and LCD has a lot of life left. Strong demand led to panel price increases, which greatly improved the profitability of LCD makers. Furthermore, LG’s struggles with manufacturing its White OLEDs in Guangzhou, and many panel makers’ struggles with increasing yields on OLED smartphone panels, reminded the industry that OLED is difficult to make and substantially higher cost than LCD. Finally, the emergence of MiniLED backlight technology provided the incumbent LCD technology with a performance champion to challenge OLED.”

O’Brien says that the South Korean’s have reversed their slowdown plans, or at least delayed closing LCD fabrications plants. “This will help to keep supply/demand in balance for 2021, after the Q1 glass shortage is alleviated. However, capacity additions for OLED fall short of the ~5 per cent per year area growth in demand that we expect, and LCD will be in increasingly tight supply unless new capacity is added.”

The North America TFT LCD panel market reached a value of US$ 52 Billion in 2020. Looking forward, IMARC Group expects the market to reach a value of US$ 64.4 Billion by 2026. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use industries. These insights are included in the report as a major market contributor.

TFT (Thin Film Transistor) is an active-matrix liquid crystal display (LCD) panel that uses the TFT technology to improve image quality in terms of addressability and contrast. Every pixel on a TFT LCD panel has a separate transistor, which controls the display illumination while enabling an easy view even in bright environments. TFTs are gaining traction in nearly all the industries as they are lightweight, slim in construction, have high-resolution and offer low power consumption. They find major applications in various electronic goods such as televisions, mobile phones, tablets, laptops, desktops, portable video game devices, etc. Apart from these, they are also used in the automotive industry, navigation and medical equipment, laser pointer astronomy, SLR cameras and digital photo frames.

The North America TFT LCD panel market is currently being driven by several factors. TFT-LCD panels provide flexibility in presenting all types of data, including pictoral representation. On account of this, they are increasingly being employed not only in the consumer electronics but also in the aerospace sector as well to display aircraft altitude information, airframe parameters, warning messages and navigational data. Moreover, TFT LCDs are less prone to reflection, viewable from a wider angle and much lighter than traditional panels, thereby having wide applications in the electronics and automotive industry. Additionally, the rising demand for TFT-LCD display is catalyzed by the increasing consumption of flat panel TVs in households, smartphones and gaming industry.

IMARC Group provides an analysis of the key trends in each sub-segment of the North America TFT LCD panel market, along with forecasts at the regional and country level from 2021-2026. Our report has categorized the market based on size and application.

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.

First, exports are not optimistic, especially due to factors such as the fading of epidemic dividends, the increase in inflation risks, and the increase in costs caused by shipping congestion. It is expected to show a gradual weakening trend in 2022.

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.

Changes in the panel supply pattern have a huge impact on the global display industry, and will inevitably bring about changes in the industrial chain cooperation model. Under the current competitive landscape and environmental background, the global display industry should pay special attention to the industry chain.

The first is the upstream material supply chain. The shortage of upstream materials, especially semiconductor materials, has accelerated the restructuring of the upstream supply chain in the past year or so. Panel manufacturers pay more attention to the risk management of the supply chain. Chinese panel manufacturers will continue to expand and cooperate with local manufacturers. BOE is constantly introducing more local partners, and will continue to strengthen its thinking on display semiconductor materials in the future; TCL will also introduce more local supply chains to prevent supply chain risks and actively seek win-win cooperation with upstream manufacturers situation. From the downstream point of view, the diversified layout of the supply chain will become an obvious trend to prevent supply chain risks and achieve the purpose of supply chain balance.

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%.

On the whole, in 2022, the plans of various panel factories will gradually become differentiated, the supply scale of panel factories in mainland China will continue to increase, and Taiwanese and Korean manufacturers have reduced the number of TV panels planned to vary degrees.

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.

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.

In recent years, smartphone terminal brands have maintained high inventory levels. As of the end of 2021, there will still be a lot of inventory in some technology-specific panels, but the demand for flexible OLED panels for high-end brands in 2022 will still show a growing trend. The structure of the supply chain is shifting to mainland China. At the same time, flexible OLED panel factories in mainland China will also grow rapidly, and the customer structure will be further enriched.

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.