- A recent report by Omdia has forecast that global LCD-TV panel unit shipments will drop by a steep 10 per cent margin this year
- The 65-inch and larger category continues to see increased production while the demand for panels in the 32 to 55-inch segment is on a decline
The worldwide market for LCD-TV display panels is set to decline both in terms of unit and area shipments in 2019. A recent report by Omdia pointed out that major suppliers of these panels have cut production.
The global LCD-TV panel unit shipments, as per the report, will drop by a 10 per cent margin this year, declining to 257.8 million units, down from 287.2 million in 2019. Area shipments, as per the report, will decrease by three per cent, declining to 158.2 million square meters, down from 162.9 million last year.
“The LCD-TV panel market will make history this year—but not in a good way. Area shipments are set for their first-ever annual decline in 2020 as suppliers reduce production and reorganize their manufacturing operations to pursue higher-value applications outside of the LCD-TV panel market,” said Peter Su, principal analyst, large display, at Omdia.
Smaller panels no more in demand
The decline in LCD-TV panel production this year is occurring in the size range spanning from 32 inches (81 cm) to 55 inches (139.7 cm). However, the 65 inch (165.1 cm) and larger category continues to see increased production.
Area shipments of LCD-TV panels sized 65 inches and larger, as per the report will rise 21 per cent in 2020 to reach 47 million square meters. However, for panels smaller than 65 inches, area shipments will fall by 10 per cent to total 111 million square meters this year.
“The reduction in area shipment for panels smaller than 65 inches will be 12.9 million square meters this year, which is considerably larger than the area growth of 8.1 million square meters for 65 inches and larger,” read the report.
“In 2019, excessive supply triggered by Chinese suppliers ultimately spurred record-breaking price declines for LCD-TV panels. As a result, Korean brands, which are less competitive on price, reduced or halted the operation of their LCD-TV panel production fabs. Moreover, Korean and Taiwanese manufacturers initiated efforts to transition their fabs to produce higher-value panels for IT applications. This is resulting in declines in unit and area shipments in 2020,” added Su.
Demand for panels used in other applications rising
In contrast to the television segment, shipments of large-sized panels for LCD monitors and notebook PCs is forecast to grow both in terms of units and area this year. Panel producers are serving the increasing demand for relatively high-value products like curved, wide-viewing-angle and high frame-rate panels.
LCD monitors are mostly produced in the same fabs as TVs, meaning that more production will be allocated to producing LCD monitors, given that LCD monitors have relatively higher added value. However, price competition should intensify as demand for both LCD monitors and LCD notebook PCs slows.
“LCD monitors are to record the largest annual growth of 13 per cent followed by three per cent growth for LCD notebook PCs and a three per cent decline for LCD TVs,” read the report.
It continued, “Omdia believes that China will continue its march toward a greater market share in 2020. China will account for 45 per cent of unit shipments and 49 per cent of area shipments this year. BOE is projected to lead unit shipments, at 26.5 per cent, followed by LG Display at 15 per cent and Inolux right behind with 14.9 per cent.”