Large LCD Shipments Fall, but Area is Rising

Shipment area of large (9″+) TFT-LCD displays will rise 5% YoY in 2016, despite unit shipment declines, says IHS. Total area shipped this year will reach 168 million m². LG Display will lead the market with a 25% share, followed by Samsung Display at 20%.

The same trend is seen in TV panels, with unit shipments falling 7% but area rising by the same amount. This is due to a slowing global market, which coincides with rising demand for larger screens. PC display unit shipments are also forecast to fall 7% YoY.

Panel makers are focusing on profitable products, such as large displays, due to falling prices. Area shipments are considered more important than unit shipments by panel makers, and so they are accelerating their move to larger sizes and higher resolutions. Display makers are said to be targeting a 24% YoY increase for 48″+ panel sizes, bringing shipments to 93 million units. At the same time, UltraHD TV panels are expected to grow 73%, to 66 million units.

China, thanks to ongoing capacity expansion, is the only country that IHS predicts will experience positive unit shipment growth in the large display segment this year. Area shipments from Chinese makers will rise 37%, while unit shipments will climb 12%. Area shipments in South Korea, on the other hand, will rise just 2%.

“China’s power in the large TFT-LCD market is growing,” said IHS’s Yoonsung Chung. “This trend could accelerate the shift to AMOLED by tier-one panel makers quicker than expected.”

TV panels are expected to drive AMOLED area shipments this year, rising 124% YoY to reach 1 million m². Large-area AMOLED shipments will be dominated by TV panels, in fact, with a 92% market share. Unit shipments will fall slightly, however, due to slower demand from tablet PCs. IHS forecasts 9″+ AMOLED display shipments will fall 5% YoY, to reach 3.7 million units.