The demand for display areas is projected to rise by 8 percent in 2024 compared to the previous year, according to Omdia’s Display long-term demand forecast tracker.
Despite global economic uncertainties and rising prices potentially dampening unit-based demand growth, the surge in demand for larger-sized displays is expected to drive a significant recovery in area-based demand.
Historical Context and Current Trends
Over the past two years, the display market experienced negative growth in terms of area for the first time in the history of flat panel displays. This downturn was primarily due to the “demand cliff” following a surge in demand during the COVID-19 pandemic, compounded by a decline in consumer confidence driven by the energy crisis, global inflation, supply chain disruptions, and rising raw material prices.
In 2024, unit volume growth for displays is anticipated to stay consistent with the previous year at approximately 1 percent. However, the demand for larger-sized displays is expected to grow steadily, driven by advancements in productivity and display technology.
Expert Insights
Ricky Park, Senior Principal Analyst in Omdia’s Display research practice, highlighted a notable shift in the market: “The 80-inch and larger-sized TV market initially focused on improving profitability and operating rates for panel suppliers, but this year, it is shifting towards significantly expanding consumer demand.” With improvements in productivity and yield, panels are being supplied at lower costs and are likely to be offered at more attractive prices during the peak season later this year.
Market Projections
Omdia forecasts that panel suppliers aim to ship 7.8 million 80-inch or larger-sized TV panels this year, marking a 35 percent increase from the previous year. In the overall display market, the area-based proportion of displays larger than 80 inches is expected to be around 7 percent this year, potentially rising to 11 percent by 2030. With investments in FABs larger than Gen10 becoming less challenging, panel suppliers are set to maximize the use of existing Gen8 or Gen10 FABs, with increased demand expected to enhance FAB operation rates.
