The long-awaited demand recovery for LCD TV panel orders from the global top Korean and Chinese TV makers is around the corner according to Omdia’s TV Display & OEM Intelligence Service. Omdia estimates a strong rebound of 19% year on year (YoY) is expected in 2Q23 along with the anticipation of reaching 161.4 million units or an increase of 8% YoY focused in 50-inch and larger screen sizes. If this 2023 buy-plan materializes, the market is about to return to the peak level of 2020 purchase volumes or 3% higher than the historical four-year average.
With a strong market on the horizon, Samsung Electronics and LG Electronics have begun proactively planning purchasing volumes for 2023 where there will be a possible surge in panel demand by 22% YoY in 2023 from a 14-year low base as seen in 2022.
Top-tier Chinese TV makers reached a new record high of panel purchases in 3Q22-4Q22 as they fulfill the bigger TV production plans established thanks to the reopening of the Chinese market allowing the makers to capture and increase their global market share especially in North America. “Chinese TV makers tend to strategically refill more low-priced panels in the oversupplied market to secure business opportunities for brands and OEMs ,” according to Deborah Yang, Chief Analyst in Omdia’s Display research practice. “Moving into 2023, it is expected Chinese TV makers will increase their purchasing volumes though there will be relatively weak demand in 1Q23 which will be followed by demand uptick from 2Q23 before the seasonal demand spike from the second half of the year.”
“It is forecast that from 2023, global TV brands and OEMs will eventually start to increase their panel orders and the new replacement cycle, especially that of larger-sized TVs. Despite many economists having negative expectations of every outcome in 2023, top tier TV makers in particular leading Chinese players are optimistic for their TV business, especially in the 50-inch and above size category which will in turn help the LCD TV panel market”, Yang concluded.