According to IHS Markit | Technology research, which is now affiliated with Informa Tech, after weak sales growth in 2019, global LCD display panel demand is expected to grow strongly by 9.1% to 245 million square meters in 2020, up from 224 million square meters in 2019 Meter.
"Despite uncertainties in the trade war between China and the United States, demand for LCD display panels is expected to increase due to record low display panel prices and the impact of various sports events held in even years." IHS Markit | Technology shows Research director Ricky Park said. "In particular, as the mobile phone and TV markets are expected to grow significantly, the area demand for OLED display panels is expected to increase dramatically."
In 2019, due to the escalation of trade tensions between China and the United States and slowing global economic growth, demand for display panels has failed to meet consumer market expectations. The area requirement for LCD display panels has increased by only 1.5% compared to last year, and is almost negligible. The future direction of the market will depend on the progress of negotiations between China and the United States that have been ongoing since October. Despite uncertainties, IHS Markit | Technology expects demand for display panels to grow at a near double-digit rate in 2020 due to a number of factors. An important growth driver is the Tokyo Olympics in July and August.
Japan's NHK plans to play the 2020 Olympic Games in 8K resolution. Many TV brands are expected to start promoting 8K TV performance before the Olympics to increase market sales.
With the increase in resolution, TV brands will meet the demand for large-sized TVs. The weighted average size of LCD TVs is expected to increase from 45.1 inches in 2019 to 47.6 inches in 2020. The increase in display panel size is the result of the gradual expansion of production and yield improvements at the new Gen 10.5 plant.
In addition, as LG Display's new Guangzhou OLED factory begins mass production, LCD display panel supply is expected to increase. Due to the decline in prices and production costs, the overall OLED display area is expected to increase by more than 80% by 2020.
With the successful debut of foldable smartphones, more new products will be launched on the market in 2020. Despite the decline in unit sales, demand for cell phone displays of all sizes is expected to continue to grow. Especially with the increase in demand for foldable displays, it is expected that by 2020, the demand for mobile phone OLED display panels will increase by 29% compared to 2019.
Therefore, IHS Markit | Technology estimates that the area demand for OLED display panels will increase by 50.5% in 2020. In contrast, the demand for TFT-LCD will grow by 7.5%.