Global Display Market Expected to Shrink by 8% Due to COVID-19 Impact
[Asia Economy Reporter Changhwan Lee] Due to the spread of the novel coronavirus infection (COVID-19), the global display market is expected to experience negative growth this year.
On the 14th, market research firm Display Supply Chain Consultants (DSCC) predicted that global display sales this year will reach $103 billion, marking an 8% decline compared to the previous year. This is the lowest sales figure since 2011.
In January, before the COVID-19 outbreak spread, DSCC had forecasted a growth rate in the low single digits following two consecutive years of negative growth in 2018 and 2019. However, the outlook was significantly lowered as the pandemic expanded.
Projections for six product categories were all revised downward. Except for displays for tablets, all products were adjusted from growth to negative growth.
In particular, the forecast adjustment for automotive displays was the largest, dropping from 5% growth in January to a 13% decline in April. This is attributed to the recent shutdowns of global automobile factories.
Next, displays for TVs and smartphones are expected to decline by 14% and 2%, respectively. The postponement of the Tokyo Olympics scheduled for this year and the closure of sales outlets mainly in Europe and the Americas significantly reduced demand for premium products in the TV display sector.
On the other hand, despite a sharp decrease in demand for smartphone displays, the outlook was only slightly revised due to favorable factors such as the trend toward larger screens and higher resolution, a 1000% surge in foldable panels, and the expansion of organic light-emitting diode (OLED) market share.
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For tablet and notebook displays, the adjustment range was relatively small due to the spread of untact (contactless) consumption. Notebooks are expected to decline by 6%, and tablets by 15%, with downward revisions of 7 and 4 percentage points, respectively.
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