OLED display technology has the advantages of self-illumination, wide viewing angle, almost infinite contrast, low power consumption, high reaction speed, etc. Compared with the advantages of LCD, OLED will become the main battlefield of display panel competition in the future.
As the world's first enterprise to apply OLED to mobile phones, Samsung has increased the shipment ratio of OLED screen mobile phones to more than 50%, and will gradually withdraw from the LCD market in the future, and Apple recently launched the OLED full-screen iPhone X. The share of smartphone OLED panels will increase from 16% in 2016 to 62% in 2021. The OLED panels for smartphones will grow from 358 million in 2016 to 1.408 billion in 2020. The annual compound growth rate reached 41%.
At present, South Korea's Samsung Group has a 99% market share in global smartphone OLED screens with its first-mover advantage in AMOLED, while Chinese manufacturers only have less than 1% of the remaining. The domestic giants began to actively lay out the card slots. In 2017, BOE's first 6-generation flexible AMOLED production line in Chengdu will be officially mass-produced and shipped in October 2017, with a designed production capacity of 480,000 sheets/month. It is also planned to invest 1.15 billion yuan to build an annual production capacity in Kunming. 1 million sheets of OLED panel production line; BOE A Mianyang 6th generation flexible AMOLED production line has started construction.
In addition to BOE, domestic manufacturers such as Visionox, Hehui Optoelectronics, Huaxing Optoelectronics, Xinli and Shentianma have also joined the card battle in the OLED market. At present, the domestic OLED production capacity still has a large gap with South Korea. In 2015, domestic OLED production capacity is only equivalent to 9% of the global total OLED production capacity. The organization expects this data to reach 28% in 2020, when China will become the only one. The second largest OLED supplier in the world in Korea.
The continued deployment of panel makers in China, Japan and Korea has also driven the growth of the OLED device market. DSCC analysts said that 2017 was a record year for the display equipment market, with revenue reaching a record $24.7 billion (up 30% from 2016). Among them, OLED-related expenditures reached a record $15.5 billion, an increase of 143% over 2016. Samsung's share of the OLED device market is 48%, followed by BOE's 24% (compared with a 229% increase in 2016).
OLED equipment revenue accounted for 63% of the overall display equipment market, surpassing LCD (2017 revenue decreased by 27% compared to 2016). In 2018, DSCC expects the equipment market to decline by 9%, and orders will resume growth in 2019. The main reason for the decline in 2018 is that Samsung will reduce its equipment orders by 64% in 2018. China is expected to lead in OLED spending in 2018, and will maintain a 64%-36% advantage over Korean companies.