Mobile/TV money hard to earn Samsung/LGD layout automotive OLED panel market

- Jun 12, 2018-

The automotive monitor has high gross margin and stable orders, and the potential for future growth is expected to attract Korean panel makers such as Samsung and LG Display (LGD), and plans to expand the market with OLED panels.

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The Koreatimes report pointed out that smart phones, TVs and PC monitors have become saturated after the land plants joined the war in recent years, and the control panel has grown by 23% every year over the past eight years. It has long been considered as a new blue ocean by major panel makers. .

According to statistics, the global car panel shipments reached 7 trillion won (US$6.5 billion) last year. As depots began to introduce more value-added OLED panels, it is estimated that the scale of on-board panels will double to 24 trillion won in 2024.

Samsung and LGD's OLED panels each grabbed the beachhead. LGD has won orders for Mercedes-Benz S-Class and E-Class OLED panels and will begin shipping from 2020. As for the Samsung OLED panel, it has also been adopted by the Audi A8 top luxury flagship RV.

According to Quzhi Consultation Survey data, the total number of vehicle panel shipments in the first quarter of 2018 was 41 million units, a year-on-year increase of 10.1%. Quzhi Consulting believes that with the growth in sales volume in the global automotive market and the multi-screen display in the car, the growth in the shipment of on-board display panels is an inevitable trend.

Judging from the shipping rankings, the top three rankings in the world are JDI, Innolux and AUO. The growth momentum of AUO in the first quarter is very obvious. JDI still dominates the market, with a market share of 18.4% in the first quarter and a year-on-year increase of 9.8%. Innolux ranked second with a 11.9% share, which was flat year-on-year; AUO's market share was 11.7%, a significant year-on-year increase of 11.7%. The fourth and fifth are Sharp and LGD, and the market share is similar to that of Innolux and AUO, which is about 11%.

Tianma is ranked sixth with a slight weakness. Its market share is about 11.3%, but its growth rate is as high as 55% year-on-year. Particularly eye-catching is its ranking in the instrument display market shipments into the top two. In addition to continuing to strengthen the advantages of small-size products, Tianma has intensified its efforts to develop large-size automotive display products. In the first quarter, shipments of its 10-inch or more products increased significantly.

Another manufacturer that has seen a significant year-on-year increase is BOE. Unlike Tianma, BOE's shipping structure focuses on the shipment of large-size products. Since its entry into the automotive market, it has continued to adopt an active market strategy. Its first-quarter shipment growth rate was 26.9% year-on-year, and its market share rose to 4.1%.

According to the manufacturer's region, the Japanese panel maker’s market share was 33.1%, which was slightly lower than that of the same period of last year. The market share of Taiwanese panel makers was 34.6%, down 2% year-on-year; the total share of Chinese mainland manufacturers was 21%. Increased by nearly 3 percentage points year-on-year.

Quzhi Consulting believes that the Japanese and Taiwanese panel makers are still in the dominant position in the global automotive display market and their market share exceeds 70%. However, from the performance of the first quarter, the overall market is in a weak downward trend. The Chinese mainland panel makers pay more attention to the on-board market in terms of product development and market strategy. After continuous efforts, they will gradually gain results.