OLED Rapid Growth... From Smartphones to TV

Smartphone Sales Surpass TV for the First Time Last Year
Demand Rises Amid COVID-19 and Trend Toward Premium, Large-Sized TVs

[Asia Economy Reporter Kim Jin-ho] The largest demand for organic light-emitting diodes (OLED) is shifting from smartphones to TVs. This trend is mainly attributed to the premiumization and enlargement of TVs, coupled with increased time spent at home due to COVID-19. It is anticipated that the OLED market will enter a phase of substantial growth.

According to market research firm Omdia on the 6th, global OLED display demand is expected to reach 17.9 million m² this year, a 25.8% increase from last year. This figure represents the total area of OLED panels required by industries such as TV and smartphones. OLED demand, which was 9.3 million m² in 2020, has been growing at an average annual rate of 11.6% since last year and is projected to reach 30.7 million m² by 2028.

The OLED market has primarily grown centered around the smartphone sector. Unlike liquid crystal displays (LCDs) that require a separate light source, OLED pixels emit light themselves, allowing for thinner panels and lower power consumption.

However, examining OLED demand last year reveals that OLED used for TV panels amounted to 7.3 million m², which is 1 million m² more than the 6.3 million m² used for smartphones. This increase is mainly attributed to consumers’ growing interest in OLED TVs as more time was spent at home during the COVID-19 pandemic. OLED TVs have the significant advantage of being easier on the eyes even during prolonged viewing.

According to market research firm TrendForce, global TV shipments this year are expected to increase by 3.4% from last year, reaching approximately 217 million units. OLED TV shipments, which were 6.7 million units last year, are projected to grow by about 27% this year to 8.5 million units.

As demand rises, more manufacturers are adopting OLED panels. While LG Electronics was the sole producer in the past, now over 20 companies from Japan, Europe, and other regions are involved in production and sales.

LG Display stands out in the OLED TV panel market. LG Display’s cumulative OLED TV panel sales surpassed 1 million units in 2016, 5 million units in 2018, 10 million units in 2020, and recently exceeded 20 million units.

Meanwhile, the OLED market itself is expected to continue growing. This is due to increasing sales of foldable smartphones with flexible screens and the adoption of OLED in mid-range and budget smartphones.

This content was produced with the assistance of AI translation services.