According to the report of Omdia, an industry research and research institute, despite the global economic downturn, the shipment volume of large-sized display panels in 2023 is expected to grow by 0.8% compared to 2022, and the shipment area is expected to increase by 3.5% annually.
According to the Omdia report, the global economic downturn, coupled with the impact of the Russian-Uzbekistan war, has led to a freeze in demand for large-sized display panels since the beginning of 2022. In 2022, the annual volume of large-sized display panel shipments decreased by 8.2% and the annual area of shipments decreased by 3.1%.
Therefore, in order to clean up the channel inventory, display panel buyers began to significantly reduce orders from the middle of 2022, resulting in a significant decline in display panel prices in 2022.
Omdia said that even though the price of display panels is at a historical low level, manufacturers began to reduce production from the second half of 2022 due to reduced demand, especially with relatively high inventory of laptop display panels.
Omdia estimates that the unit shipping volume and shipping area of large size display panels are expected to increase in 2023; Although inventory issues have recently eased, information electronics (IT) display panels such as laptops may require more time to clear inventory.
According to Omdia's research, the shift of the TV panel market to large-sized products will help increase the shipping area in 2023. In 2022, the annual decrease of 65 inch and above TV display panel shipments was 5%, mainly due to the global economic downturn and the low utilization rate of display panel manufacturers for the 10.5 generation production line.
However, Omdia expects that the shipment of 65 inch and above TV panels in 2023 will grow by 17% compared to 2022.
Omdia estimates that the supply and demand of large size display panels will improve from the second half of 2023. Display panel manufacturers will adopt a strategy of producing according to actual order receiving conditions to prevent panel prices from falling. As display panel buyers start replenishing inventory from the middle of 2023, the inventory problem will be alleviated.