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Chinese companies are rapidly catching up with Samsung Display and LG Display in the OLED field. Domestic companies are focusing on the IT OLED market to gain an advantage in this competition, with forecasts suggesting that OLED adoption could be particularly prominent in the laptop sector.

Market research firm Omdia held the 'Korea Display Conference' on the 13th at El Tower in Yangjae, Seoul. David Xie, Omdia's Senior Research Director, and Ricky Park, Omdia's Senior Analyst, attended as presenters at the event.

David Xie, Omidia Senior Research Director, presenting on the 13th at EL Tower, Yangjae, Seoul / Photo by Kim Pyeonghwa

Director David Xie stated that the display industry is expected to have a recovery year this year, forecasting that "total display market revenue will increase by 7% year-on-year, and panel area will grow by 9%." He also explained, "The TV replacement cycle is shifting from a unit-based to an area-based metric, especially in 2024, which allows the industry to expect good growth."

This is welcome news for domestic companies such as Samsung Display and LG Display. However, geopolitical issues are a concern amid growing US-China tensions. A key example is US automaker GM's announcement that it will not use automotive displays produced in China. The rapid growth of Chinese companies, supported by national subsidies, is also raising concerns within the industry.

David Xie evaluated, "Chinese OLED makers are becoming stronger," and "the gap between Chinese OLED makers and Samsung Display and LG Display is narrowing." He added, "Samsung Display and LG Display are making efforts by introducing new technologies, and Chinese companies, although under different names, are continuously innovating by presenting OLED technologies based on the same underlying technology."

Domestic companies are focusing on the IT OLED market, which includes laptops and tablet PCs, to secure a competitive edge in the OLED field. Since OLED demand in the TV sector still falls short of expectations due to higher prices compared to LCD, there is a need to pioneer new markets to support growth.

Senior Analyst Ricky Park Omidia is presenting at the Korea Display Conference on the 13th. /

Analyst Ricky Park said, "You need to generate profits in other businesses to withstand losses in the (still insufficient) TV business," adding, "Creating a profitable environment in smartphone and IT OLED markets is essential to finding ways to survive in the TV sector."

The growth outlook for the IT OLED market is positive. According to Omdia, the IT OLED market revenue is expected to increase from $2.534 billion this year to $8.913 billion by 2029. Ricky Park explained that IT OLED demand is currently on the rise.

He analyzed, "In tablet PCs, the adoption rate of OLED by brands other than Apple is less than 30%, and the market is led by Apple," adding, "Since the only brand that can be called a high-end tablet PC is the iPad, the market share is unlikely to grow significantly in the short term."

He continued, "On the other hand, in laptops, there are many high-end brands such as Apple, Lenovo, Dell, and HP that have been operating, so there are many potential adopters of OLED," and added, "We expect a higher growth rate for the (OLED) laptop market."

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