What Display Daily Thinks: There are no straightforward strategic plays here. There’s not much room for cost management and operational efficiency even though that is what is demanded by the data provided below; manufacturers have to work on getting market share during a period of weak demand or risk becoming marginalized, and that’s going to cut into the bottom line.
Even given the stronger growth projection for OLED (6.3% CAGR 2021-2026), manufacturers would be loathe to reallocate resources solely towards OLED technology to exploit this growth opportunity for exactly the same reasons, it is better to chase market share and solidify your position in any and all areas that you can, irrespective of technology.
Additionally, China’s dominance in display capacity demands better relations with Chinese companies but that’s tricky because of geopolitical pressures adding a layer of uncertainty. Some companies can take advantage of that situation by charging Chinese companies more for equipment and materials, but that’s not a great look if you want to partner with someone for the long term.
The projected growth in India’s display capacity offers an opportunity for early investments in an emerging market, but we also just found out that one of those opportunities, Foxconn and Vedanta, a high profile endorsement of the Made in India campaign of the country’s government, suggests India has its own complexities and issues for investors.
Falling Display Manufacturing Capacity
DSCC is reporting the global display industry is witnessing a prolonged downward trend, with reduced display capacity for six consecutive quarters. Projections for 2027 show a 1% decrease, marking a 12% fall from 2026 peak levels. OLED and LCD manufacturing have been impacted, leading to a revision of the 2021-2027 display capacity compound annual growth rate (CAGR) from 2.2% to 2.0%. Although LCDs are predicted to maintain a higher capacity, the OLED sector is expected to expand faster with a 6.3% CAGR from 2021 to 2026. Applications-wise, the LCD TV/IT segment is anticipated to retain dominance, while OLED Mobile/IT and OLED TV/IT are expected to grow steadily.
Regionally, China is set to continue its dominance, with a predicted 70% share from 2025-2027. Korea and Taiwan are forecasted to see share reductions to 8% and 18% in 2027, respectively. India is poised for growth, expected to reach a 1% share by 2027. Among manufacturers, BOE leads in total display capacity with a projected 2.6% CAGR from 2021-2027. In contrast, the OLED capacity segment is expected to be led by LGD, with BOE retaining the third position, and SDC holding a commanding lead in the Mobile/IT OLED capacity sector.
