On the 20th, it was reported that the market research company DSCC**, global display facility investment will decrease by 61% to $4.7 billion this year, but will usher in a strong ** next year, or an increase of 82% to $8.5 billion, and an increase of 25% to $10.6 billion in 2025. The global market is recovering after the pandemic, but even at $10.6 billion in 2025**, it is still below the pre-pandemic average of $13 billion in 2019.
By application, LCD TVs and IT products are expected to account for at least 73% of total display production capacity by 2027, while LCD mobile devices are expected to account for 15% by 2027. In 2027, OLED mobile devices are expected to account for 7%, and OLED TVs and IT products are expected to account for 4%.
Looking at the change in capacity share by application, the OLED mobile segment has the highest compound annual growth rate (CAGR) of 73%。OLED TV and IT products segment is expected to **15%, LCD TV and IT products segment is expected to **14%。On the contrary, the LCD mobile device segment is expected to see 2Negative growth of 2%. This is due to the suspension of some amorphous silicon (A-Si) liquid crystal display production lines, as well as the expansion of low-temperature polysilicon (LTPS) and oxide production lines, which are high value-added products.
Regionally, China is expected to continue to dominate. China's share of global display capacity is expected to increase from 65% in 2022 to 72% between 2026 and 2027. China's share of LCD capacity is expected to reach 67% in 2022 and 74% from 2025 to 2027. In 2027, China's share of the OLED field may reach 49%, close to South Korea's 50% share in the field in the same year. By the end of 2027, China is expected to have at least 49% of the applications and technology sectors.
South Korea's share of global display capacity is expected to decline from 12% in 2022 to 8% in 2027, largely due to the decline in South Korea's market share in the LCD segment, which on the other hand will only have a market share of 50% in 2027. This means that the gap between South Korea and China's OLED production capacity share in 2027 will only be 1 percentage point.
From the company's point of view, BOE dominates. BOE has display factories for all applications, including LCD and OLED. From 2022 to 2027, BOE's share of global display production capacity** will be 25-26%.
CSOT surpassed LG Display last year and ranked second in terms of overall display production capacity. From the perspective of total display production capacity, CSOT is expected to maintain a market share of about 10% by 2027. CSOT's share of LCD capacity is expected to rise from 15% in 2021 to 19% in 2027.
HKC is expected to rank third this year, accounting for 12% of overall display capacity. LG Display was in second place until 2021, but is expected to fall to third place last year and fifth this year, behind Innolux (fourth).
Samsung Display is expected to rank eighth in overall display production capacity this year, following AUO and Sharp. Samsung Display also continued its LCD business in 2020, ranking third in the category, behind LG Display, but Samsung withdrew from the LCD business last year to go all-in on OLED.
On the other hand, Samsung Display's share of mobile device OLED production capacity is expected to exceed 40% by 2026 and 37% by 2027. In the same sector, BOE is expected to maintain its second place from 2022 to 2027, with a market share of 17-18%. As of 2027, LG Display is expected to rank third with 11%, Visionox fourth with 10%, and Tianma fifth with 9%. It is estimated that the market share of Huaxing Optoelectronics, Changhui Technology and JDI will be 5% in the same year.
Overall, global display investment is still growing, which will also drive the display market to recover slowly, but it will take some time to return to the pre-epidemic level, and 2025-2027 may be the period when the global display industry breaks through the obstacles and regains substantial growth. For Chinese display companies, after several years of industrial upgrading and technological innovation, progress has been made in both LCD and advanced OLED fields, especially by 2027, the share of domestic displays is expected to be equal to South Korea, and in the field of cutting-edge displays, South Korea has wrestled wrists. Domestic manufacturers still need to work hard in the field of mobile display, and South Korea still maintains its technological advantage and market leadership in this field, and expects domestic brands to perform better in the future.