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Display Panel Revenues To Fall 2%

Santa Clara, Calif. — Despite a sharp spike in OLED shipments, falling LCD sales, declining PC panel demand, and ongoing price erosion is expected to send global flat-panel display revenue down by 2 percent this year, IHS reported.

Total industry revenue is projected to hit $129 billion, down from last year’s $131.4 billion take, the market research firm said.

Leading the decline is the TFT LCD sector, which is forecast to fall 3 percent, to $115.8 billion this year, although category revenue is expected to grow again in 2016.

Also facing revenue declines are obsolete or limited-application technologies like plasma, CRT, passive-matrix LCD and electronic paper display (EPD), IHS said.

Only OLED is expected to grow in 2015, with AMOLED display revenue expected to grow 36 percent, to $11.8 billion, and revenues for PMOLED growing and projected 22 percent, to $450 million.

“AMOLED growth is based on several factors, including soaring smartphone OLED display shipments, growth in OLED TV panel shipments, the expansion of OLED into tablet PCs, and increased use in wearable devices, like Apple Watch. Flexible OLED is a key feature driving AMOLED revenues, especially given its higher ASP [average selling price], attractive features and great value,” said David Hsieh, IHS’s display research senior director.

Conversely, the TFT LCD market is facing falling demand for panels used in tablets, notebooks and desktop monitors; price erosion for smartphone panels due to sharp increases in production for superior low-temperature polysilicon (LTPS) TFT LCD panels; and declining open-cell LCD TV panel prices, including 4K UHD TV panels.

Price erosion for TFT LCD is reflected in this year’s expected 4 percent increase in square-meter production amid the 3 percent revenue decline, IHS said.

Next year’s projected 1 percent revenue growth for TFT LCD is due to further expansion of LCD TV features, such as larger display size, wider color gamut and further penetration of 4K UHD TV; the emergence of the 4K displays for tablets, smartphones and desktop monitors; and newer automotive displays, smart watches, public displays and other new applications that will all help ASPs rise.