The value of OLED TV display shipments is set to fall by around 7% this year, according to the latest industry report from research outfit Display Supply Chain Consultant.
The report predicts a sluggish year of sales for every segment of the OLED market, but the TV display industry is expected to suffer the worst hit, DSCC said.
Last year we saw a great deal of macroeconomic uncertainty arise as the conflict in Ukraine flared up, and it has had a dire impact on economic growth. With inflation at extremely high levels, people are more concerned about putting food on the table than anything else, resulting in reduced consumer spending. As TVs are something of a luxury item, it came as no surprise that OLED TV shipments declined in 2022.
Unfortunately for OLED television panel makers, the situation has not improved this year. DSCC says that it expects the value of shipments of all types of OLED display to fall by 7% to just $38.9 billion, albeit with a very slight volume increase of 1%. The only bright spot, DSCC says, is the market for OLED virtual reality, augmented reality and automotive displays. However, they remain such a small segment that they cannot prevent an overall decline.
DSCC said OLED smartphone displays, which represent 79% of all units sold, are expected to see sales volume decrease by 5% this year. Meanwhile, the market for computers with OLED displays is expected to fall by 20% in value.
However, it’s the OLED TV display industry that’s really going to suffer. Despite the best efforts of LG Display and Samsung Display, who have both made significant upgrades to their White OLED and QD-OLED panels, respectively, consumers simply don’t have enough spare cash to go spending on luxury products. As a result, DSCC says OLED TV panel shipments are expected to fall by 29% this year, with a similar decline in revenue.
AV Caesar, which first reported the news, says this is likely to be a “disastrous situation” for LG Display especially, given its dominance of the OLED TV sector. The company accounted for 81% of OLED TV display volume in 2022 and 76% of all revenue, and with its recent decision to stop producing LCD panels, the OLED business is clearly hugely important to the company. So the expected fall in sales will likely come as a very hard blow to LG Display.
DSCC’s report further underscores the vital importance of LG Display’s recent agreement to supply Samsung Electronics with OLED TV panels. As the undisputed number one TV brand, Samsung can expect to shift millions of OLED televions, bringing some respite to both companies in the process.
