Industry Overview

As a core component of the modern electronics industry, the display panel industry undertakes the key function of converting electrical signals into visual images, and is widely used in many fields such as smartphones, tablet PCs, laptops, in-vehicle displays, televisions, and wearable devices. With the popularization of global consumer electronics products, the rapid development of the Internet and communications technology, as well as the accelerated penetration of artificial intelligence technology, human demand for information interaction is growing, the display panel industry has ushered in unprecedented development opportunities.

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Market Size and Growth Trends

In recent years, the global display panel market size has continued to expand. in 2024, the global display panel market size has reached about RMB 1.3 trillion, and is expected to grow to RMB 1.4 trillion by 2025. In terms of sales value, the market size of the global display panel industry was approximately RMB 1.3 trillion in 2024, and is expected to reach approximately RMB 1.9 trillion by 2030, with a CAGR of 6.0% during the period from 2024 to 2030.

In terms of shipments, global panel shipments are expected to maintain a growth rate of 1-2% from 2022 to 2025, while the compound annual growth rate (CAGR) of panel demand will remain above 4%, with incremental demand outpacing incremental capacity. This shows that although the market is gradually becoming saturated, but with the expansion of emerging applications and product upgrading needs, the display panel industry still has stable growth potential.
 

Third, the development trend of technology

(A) the rapid rise of OLED technology

OLED (organic light-emitting diode) technology with its self-luminous, high color contrast, high refresh rate, thin and lightweight design, as well as support for bending and other excellent performance in the field of high-end display penetration continues to increase. 2024, OLED display technology in the global display panel market accounted for about 14.51%, mainly used in high-end smartphones, TVs and other products. With the continuous improvement of domestic OLED core technology and the decline of production and application costs, the demand for OLED panels in both large-size and small and medium-size fields is on the rise.

The technical strength of domestic enterprises in the field of OLED is also rapidly improving, and has gradually gained a higher right to speak in the international market. For example, BOE, TCL Huaxing and other enterprises have made significant progress in OLED technology research and development and industrialization, and their products are close to the international leading level in performance.

(ii) LCD technology still dominates

Despite the rapid development of OLED technology, LCD (liquid crystal display) technology, with its high maturity, stable color performance, low production costs and other advantages, will remain the absolute mainstream of the display panel market in the next 5-8 years. 2024, LCD display technology in the global display panel market accounted for about 56.25%, mainly used in low-end consumer electronics display products, medium and large-sized display panel products and TVs.

With the continuous progress of technology, LCD panels are also developing in the direction of large-size and ultra-high-definition (4K/8K). 2025, China's LCD panel production capacity is expected to reach 150 million tablets per month, of which the proportion of ultra-high-definition (4K/8K) products will be increased to more than 50%.

(C) Mini / Micro LED technology is emerging

As new display technologies, Mini LED and Micro LED have the advantages of high brightness, high contrast, low power consumption, etc., which are regarded as the important development direction of future display technology. mini LED technology has been applied in some high-end display products, such as high-end TVs, monitors, etc.; Micro LED technology is still in the early stage of development, but it is widely regarded as a technology that may overturn the existing display technology in the future, due to its potential performance advantages. Micro LED technology is still in the early stage of development, but because of its potential performance advantages, it is widely recognized as a key technology that may disrupt the existing display market in the future.

(iv) Quantum dot technology accelerates commercialization

Quantum dot technology, as a technology capable of significantly improving display color performance, is accelerating the commercialization process. Quantum dot display technology by adding quantum dot material in the LCD screen, can achieve a higher color gamut and more accurate color reproduction, so that the display screen is more vivid and realistic.

Competitive landscape and market concentration

The competitive pattern of global display panel industry is undergoing profound changes, and the industry concentration is gradually tilted to Chinese manufacturers. in 2023, China's LCD panel production capacity accounted for more than 60% of the world's total production capacity, and BOE, Huaxing Optoelectronics, TCL Huaxing and other enterprises dominate the market. In the field of OLED, the domestic has built 15 G6 AMOLED production line, 2024 flexible OLED capacity will reach 40%, directly catching up with South Korea's 55%.

With the gradual withdrawal of Korean manufacturers (such as Samsung, LG) from LCD panel production, as well as Taiwan-funded manufacturers will shift their LCD production capacity to IT products, the share of Chinese panel manufacturers in the global market will further increase. It is expected that by 2025, the share of Chinese companies in the global display panel market will reach 40%, becoming the world's largest exporter of display panels.

Fifth, the expansion of application areas

Display panel applications continue to expand, in addition to the traditional consumer electronics field, automotive display, education and health care, wearable devices and other emerging areas of demand is growing significantly. For example, the demand for in-vehicle display is expected to grow by 25%, and the market size of medical high-definition screen will reach 10 billion yuan.

With the rapid development of AI technology, AI PC is accelerating and becoming a new growth point in the display panel industry.AI PC realizes smarter human-computer interaction through speech recognition, natural language processing and real-time data analysis, and promotes the application innovation of display panels in the fields of office, education and entertainment.

VI. Challenges facing the industry

Although the display panel industry has a bright future, it is also facing some challenges. First, there is a risk of overcapacity in the industry, especially in the LCD field, which may lead to increased market competition and lower product prices. Secondly, the rapid pace of technological upgrading, companies need to continuously invest in research and development to keep up with new technological trends, otherwise they may face the risk of being eliminated.

In addition, the bargaining power of the raw materials and equipment market is weak, some key raw materials such as glass substrates, polarizers, etc. are still dependent on imports, and the proportion of imported production equipment reaches more than 80%, which may limit the profitability and development space of domestic panel manufacturers.

VII. Conclusion

To sum up, the display panel industry shows good development prospects in terms of market scale, technological innovation, application expansion, etc. The rapid rise of OLED technology, the continuous optimization of LCD technology, the emergence of Mini/Micro LED and Quantum Dot technology, as well as the convergence and application of emerging technologies such as AI have injected new vitality into the industry.

Chinese companies are becoming increasingly important in the global display panel industry, with increased industry concentration and enhanced technological strength, making them more competitive in the international market. However, the industry is also facing challenges such as overcapacity, rapid technological updating, and raw material supply, which require enterprises to continuously improve their strength and strengthen technological innovation and industry chain synergy to cope with future market competition.

In the future, the display panel industry will continue to develop in the direction of high resolution, large size, flexibilization, and intellectualization, making greater contributions to the prosperity of the global electronics industry.