Explore the market’s dynamics, including the shift in shipment trends, the sector is now expected to face a substantial -7.3% year-over-year (YoY) decrease, driven by heightened demand erosion and strategic panel maker resource management.
The latest update from Omdia’s Large Area Display Market Tracker for the second quarter of 2023 reveals an adjustment in forecasts for the large-area display sector. Previously, it was anticipated that large-area displays, encompassing both LCD (Liquid Crystal Display) and OLED (organic light-emitting diode) technologies, would experience a modest 3.2% year-over-year (YoY) decrease in 2023. This projection has been revised downward to a more substantial -7.3% YoY decline. This shift is attributed to intensified demand erosion and strategic management of panel maker resources.
According to Peter Su, Senior Principal Analyst at Omdia, the decline in display demand is particularly evident in mobile PCs and monitors, accompanied by reduced pricing pressure. LCD TV displays continue to experience price increases in 2023, leading to profitability for display manufacturers in this segment since mid-2023. The IT LCD business remains a source of losses, prompting display makers to adjust their shipment plans for IT LCDs to mitigate losses.
Shipment Trends
To safeguard LCD TV display prices, manufacturers contemplate reducing their LCD fabrication plant utilisation from the third quarter of 2023 until year-end. This strategic decision underscores their commitment to preserving display prices rather than aggressively pursuing higher shipment volumes in the fourth quarter. While unit shipments are projected to decline, the overall shipment area for large-area displays is expected to increase by 0.5% YoY in 2023. This growth can be attributed to a migration towards larger TV display sizes. The monitor display segment anticipates a 0.6% YoY increase in shipment area, driven by more robust consumer demand, particularly in the gaming monitor category.
Despite the challenges in demand, the large-area display market is still substantial, with a projected revenue of $63.2 billion in 2023. This represents a 3.1% decrease from the previous forecast of $65.2 billion, primarily due to sluggish demand and a gradual recovery in IT display prices. TV display revenue is expected to increase by 16.4% YoY, thanks to price hikes initiated in the first quarter of 2023. Regarding market share, BOE( Bill of Exchange) is expected to dominate large-area display unit shipments in 2023 with a share of 32.1%, followed by Innolux at 13.7% and LG Display at 11.9%. Similarly, BOE is poised to lead in large-area display shipment area with 26.4%, China Star at 20.3%, and HKC Display at 13.4%.
In large-area OLED displays, Samsung Display is projected to command a share of unit shipments at 57.7% in 2023, with LG Display following at 33.2%. However, in terms of shipment area, LG Display is expected to outpace its competitors with a commanding share of 73.3%, while Samsung Display follows with 25.8% in 2023.
