It is reported that after achieving a 7.3% increase in 2018, it is expected that the global flat panel display (FPD) shipment area will reach 228 million square meters in 2019, an increase of 6.4%. According to IHS Markit data, this is the first time in four years that the year-on-year growth rate has slowed down.
Although FPD demand will continue to grow, mainly due to the shift to larger display devices such as TVs, desktop monitors, mobile PCs and smartphones, this growth is expected to slow in 2021.
Ricky Park, head of IHS Markit, said: "The escalation of global trade tensions has also had a huge negative impact on global panel demand. The large investment in China's panel production is expected to lead to an increase in oversupply in the coming year."
According to the global economic and global market report released by IHS Markit, the global real gross domestic product (GDP) growth rate is expected to increase by 3.0% in 2019, 3.2% in 2018 and 3.3% in 2017. Due to the deterioration of trade disputes between the United States and China, the global real GDP growth rate in 2019 was also lowered from the 3.4% forecast in April 2018. This trend will also lead to a slowdown in demand growth in the end market and a decline in FPD demand in the coming year.
As Huaxing Optoelectronics will begin mass production of FPD at its 10.5th manufacturing plant (fab) in Shenzhen, China in the first quarter of 2019, it is expected to have a certain impact on the oversupply of FPD. At the same time, Huike Electronics (HKC) will also provide capacity in the second quarter of 2019 through its new 8.6-generation plant mass production panel. Therefore, compared with 2018, the production capacity of thin film transistor panels is expected to increase by 11% in 2019, and the trend of oversupply will far exceed 2018.
Park pointed out: "Because demand and supply market expectations are not very optimistic, panel suppliers and TV manufacturers are beginning to try to develop more advanced products and technologies, such as 8K resolution TV, QD OLED TV and for smartphones and tablets. Foldable displays, etc., in order to stimulate consumer demand."