Omdia "Display Demand to Recover to Normal Levels in the Second Half of Next Year"

"Total demand next year to increase by 6.2% compared to this year"
"If signs of economic rebound appear, consumers respond to lower prices"

The exhibition booth of Samsung Display's 'K-Display' on August 10th. (Photo by Samsung Display)

[Asia Economy Reporter Moon Chaeseok] An analysis has emerged that global display demand will return to normal levels in the second half of next year.

Global market research firm Omdia released a mid-to-long-term demand forecast report on the 8th, stating that the global display area demand will increase by 6.2% next year compared to this year.

Omdia predicted that consumer demand will increase considering panel prices, which have been falling for over a year after the economic recovery next year.

Omdia analyzed that if global inflation slows down and there are signs that the economy has bottomed out, the recovery speed of TV demand will accelerate. If inflation eases, monetary authorities in each country will slow down the pace of interest rate hikes, leading to a recovery in the sharply declined demand.

Jinhan Park, Director of Omdia's Display Research Division, explained, "Panel prices and retail prices, which have been falling for over a year, may stimulate consumer sentiment," adding, "In particular, the recovery speed of demand for extra-large TVs, whose prices have dropped significantly, could accelerate, driving a rapid recovery in overall display area demand."

For this year, demand is expected to decrease by 6.9% compared to the previous year. If this happens, this year will be recorded as the first year in flat panel display history where area demand shrank. Global inflation, supply chain disruptions, and the energy crisis caused by rising raw material prices acted as negative factors.

Omdia reported that major panel manufacturers are mass-producing various TV sizes over 70 inches to dominate the extra-large TV market and are maximizing cost reductions by optimizing process efficiency. Organic Light Emitting Diode (OLED) TVs are expected to increase market share through improved picture quality and price reductions.

The market for TVs over 70 inches is expected to grow by more than 15%, from 18 million units this year to 21 million units next year. The share of the TV market over 70 inches is expected to exceed 20% of the total TV display market for the first time next year. TV displays account for about 80% of the total flat panel display area shipments.

However, despite unprecedented efforts by panel manufacturers to reduce factory operating rates, Omdia expects that the inventory levels of set manufacturers have not yet normalized, which could act as an obstacle to panel demand recovery in the first half of next year.

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