Display equipment investment will surge by 82% in 2024

According to Quarkdisplay news, global display equipment investment will expand by 82% next year and will increase by 25% by 2025.

DSCC predicted on the 20th that global investment in display equipment will decrease by 61% this year to US$4.7 billion, expand by 82% next year to US$8.5 billion, and increase by 25% to US$10.6 billion by 2025.

Among annual investment in display equipment, the proportion of organic light-emitting diodes (OLED) is expected to reach 54% next year, 84% in 2025, and 82% in 2026. The scale of investment in OLED equipment next year is expected to be similar to that in 2021, and the scale of OLED equipment investment in 2025 will be similar to that in 2020.

It is predicted that although the proportion of OLED in equipment investment has increased, in global display production capacity, LCD currently accounts for just over 90% and will reach more than 80% by 2027, still maintaining an overwhelming share. Among the total display production capacity, the proportion of OLED is expected to increase slightly from 8.4% in 2022 to 10.6% in 2027.

DSCC believes that although the growth momentum of LCD production capacity is limited, as screen sizes continue to expand and LCD TV demand rises, if demand in China returns to pre-epidemic levels, it may lead to insufficient supply of LCD panels.

From the perspective of application fields, LCD TVs and IT products will account for at least 73% of all display production capacity by 2027, and LCD mobile devices will account for 15% by 2027. It is expected that by 2027, the proportion of OLED mobile devices will reach 7%, and the proportion of OLED TV and IT products will reach 4%.

Among the changes in production capacity share in various application fields, the OLED mobile device field will have the highest average annual growth rate (CAGR) from 2022 to 2027, reaching 7.3%. The OLED TV and IT products segment will rise 1.5%, and the LCD TV and IT products segment will rise 1.4%. The LCD mobile device field is expected to experience a reverse growth of 2.2%. This was affected by the suspension of non-silicon (a-Si) LCD production lines and the expansion of low-temperature polycrystalline silicon (LTPS) and oxide (oxide) production lines for relatively high value-added products.

From a regional perspective, China is expected to continue to have the upper hand. In terms of global display production capacity, China's share is expected to increase from 65% in 2022 to 72% from 2026 to 2027.

In terms of LCD, China's market share forecast is 67% in 2022 and 74% from 2025 to 2027. In the OLED field, China's share will reach 49% by 2027, and South Korea's share in this field is expected to be close to 50% in the same year. It is predicted that by the end of 2027, China will account for at least 49% of all application fields and technology fields.

In terms of global display production capacity, South Korea's share will decrease from 12% in 2022 to 8% in 2027. Because in the LCD field, South Korea's share will drop from 9% in 2022 to 3% from 2024 to 2027. The Korean share forecast in the OLED field is 55% in 2022 and 50% in 2027. In terms of OLED production capacity share in 2027, the gap between South Korea (50%) and China (49%) is 1%.

In the overall display production capacity, Taiwan's share is expected to decrease from 19% in 2022 to 17% in 2027. India is expected to start investing in displays from 2025 through the Tata Group and secure 1% of global display production capacity by 2027.

From an enterprise perspective, BOE has an absolute advantage. BOE not only owns LCD and OLED, but also has display factories for all application fields. From 2022 to 2027, BOE's global display production capacity share forecast is 25% to 26%.

CSOT overtook LG Display last year and ranked second in display production capacity. Based on overall display production capacity, CSOT's market share is expected to remain around 10% by 2027. CSOT's share of LCD production capacity is expected to increase from 15% in 2021 to 19% in 2027.

HKC's display production capacity share is expected to reach 12% this year, rising to third place. It is speculated that LG Display has been ranked 2nd so far in 2021, but it was ranked 3rd last year and will drop to 5th this year following Innolux (4th).

This year, Samsung Display’s overall display production capacity ranking is expected to rank 8th, behind AUO (6th) and Sharp (7th). Samsung Display ranked third behind LG Display in 2020, but it withdrew from the LCD business last year.

On the contrary, it is predicted that Samsung Display's mobile device OLED production capacity share will exceed 40% by 2026 and will reach 37% by 2027. In the same field, BOE's market share is expected to reach 17 to 18% from 2022 to 2027, continuing to maintain its second position. Based on 2027, LG Display ranks 3rd with 11%, Visionox ranks 4th with 10%, and Tianma ranks 5th with 9%. In the same year, the predicted share of CSOT, EDO and JDI was 5% respectively.