In the latest Large Area Display Market Tracker for 2Q23, research firm Omdia predicts a 7.3 percent year-over-year decrease in large-area display shipments for 2023, encompassing both LCD and OLED technologies. This downturn is attributed to a combination of weakened demand and careful utilization management by panel manufacturers.
Peter Su, Senior Principal Analyst at Omdia, noted, “Display demands from mobile PCs and monitors are getting weaker along with fewer price increases, while LCD TV display prices continue to see upward trends in 2023. Manufacturers have begun turning profits from the LCD TV display business since mid-2023, but losses persist in the IT LCD sector.”
To mitigate losses, display makers have adjusted and downsized their IT LCD shipment plans for 2023. Additionally, they are contemplating reducing their LCD fabs utilizations from the end of 3Q23 through the year’s end, aimed at sustaining LCD TV display prices. This strategic shift underscores their focus on safeguarding display prices rather than aggressively driving shipment volumes towards the latter part of 2023.
Contrary to unit shipments, the forecast predicts a marginal 0.5 percent increase in the shipment area of Large-area displays in 2023, attributed to a migration towards larger TV display sizes. The monitor display segment is also expected to see a 0.6 percent increase in shipment area, buoyed by sustained demand for gaming monitors and related consumer preferences.
In terms of revenue, the large area display market is projected to reach $63.2 billion in 2023, reflecting a 3.1 percent decrease from the previous forecast of $65.2 billion and a 4 percent decrease. Slower demand and a gradual recovery in IT display prices are cited as the key contributors to this dip. However, TV display revenue is expected to buck the trend, with a robust 16.4 percent increase alongside price hikes starting from mid-1Q23.
The market share for large area display unit shipments in 2023 is predicted to be led by BOE at 32.1 percent, followed by Innolux at 13.7 percent and LG Display at 11.9 percent. BOE is also expected to dominate in terms of shipment area, accounting for 26.4 percent, followed by China Star at 20.3 percent and HKC Display at 13.4 percent.
In the realm of large-area OLED displays, Samsung Display is anticipated to secure the lion’s share of unit shipments at 57.7 percent in 2023, trailed by LG Display at 33.2 percent. However, LG Display is poised to lead in shipment area with a commanding 73.3 percent, while Samsung Display follows at 25.8 percent for the same period, the report said.
