Despite concerns about oversupply in the market, global shipments of large-size TFT LCD panels have continued to grow again in 2018. According to IHS Markit data, driven by TV and display panels, shipments of large-size TFT LCD panels increased by 10.6% in 2018 compared to the same period in 2017, reaching 197.9 million square meters.
In 2018, due to the mass production of BOE's B9 production line, the price war of large-size 65-inch and 75-inch display panels started. Robin Wu, principal analyst at IHS Markit, said: "With the BOE 10.5 generation product line in operation, panel makers have been actively pricing since the beginning of 2018 to digest capacity. Because larger panels are more profitable than smaller panels. Big."
The industry's growing demand for gaming PCs and professional displays has further boosted shipments of high-end, large-size panels. Wu said: "Some panel makers have begun to arrange more display panel orders for the factory, which will replace the production of existing TV panels, thus making up for the poor performance of the business."
Other applications, including public, automotive and industrial displays, have the highest growth rates, with area shipments and unit shipments increasing by 17.5% and 28.6%, respectively. "Panel makers see these applications as new cash cows that can make up for the sharp decline in TV, monitor and notebook panel prices," Wu said.
In terms of area shipments, LG Display is in a leading position with a market share of 21%, followed by BOE (17%) and Samsung Display (16%). In terms of unit shipments, BOE ranked first, with a market share of 23%, followed by LG Display (20%) and Innolux (17%).
It is expected that the growth trend of large-size TFT LCD panel shipments will continue until 2019. Preliminary forecasts for shipments of the three major product units indicate that panel makers will continue to focus on the display and notebook panel business, with annual shipments increasing by 5.3% and 6.6%, respectively, while TV panel shipments are expected to increase only 2.6%.
In 2019, three new 10.5-generation panel production lines - T6 of Huaxing Optoelectronics, the second panel factory of BOE and the Guangzhou production line of Foxconn/Sharp - are expected to begin mass production. All of these lines will be used in the production of TV panels to further drive the supply of TV panels. Wu said: "Since the TV panel business is expected to continue to maintain a difficult situation, panel makers who have achieved good performance in the field of display and notebook panels in 2018 are likely to focus on the IT panel business."