Display panel market was valued at US$119.139 billion in 2019 and is projected to expand at a CAGR of 5.11% over the forecast period to reach US$160.664 billion by 2025. Rising demand for smart televisions, smartphones, and other mobile devices owing to increasing purchasing power is driving the growth of the display panels market. With the increasing disposable income, the expenditure on consumer electronics also increases especially in developing countries like China, India, and Brazil which boosts the demand for display panels. In fact, according to The World Bank, final consumption expenditure in China has increased from US$2.939 in 2010 trillion to US$7.26 trillion in 2018. Investment in the new OLED and other panel manufacturing facilities coupled with the increasing demand for advance panel displays like 4k is expected to drive the market during the forecast period. For instance, in January 2020, Samsung states that is planning to invest more than INR 3,500 Crore in setting up India’s first smartphone display manufacturing unit in Noida (Uttar Pradesh). The plant is expected to produce displays of mobile phones and IT display and is considered as a fresh arrival of Samsung component manufacturing segment in the country. However, the high cost associated with advanced display panels is expected to hinder the market growth opportunities for the market in the coming years.
Growing use of digital signage in various industry
In addition, growing adoption of digital signage across various industries including sports and entertainment, where companies are aiming to deliver an enjoyable and engaging experience by investing heavily in technologically advanced displays used in digital signage in stadiums and arena is further expected to boost the demand for a display panel in the coming years. For instance, in April 2019, Capital One Arena, a sports venue in Washington D.C., selected Ping HD and Bright Sign to update its signage by deploying more than 100 Bright Sign LS423 media players connected to Samsung displays resulting in the making of video walls at each concession stand. Furthermore, a wider range of product launch of wearable devices by market players in developing economies to increase their market share is further expected to propel the market growth opportunities for manufacturers and vendors of display panels. Like in March 2019, Fitbit launched three brand new wearable devices in Malaysia which are budget products aimed at a bigger market for consumers with their affordability.
Smart phones segment is holding significant share in the market
By application, smartphones are expected to hold a significant share in the market and are growing at an exponential rate over the forecast period owing to the growing production of smartphones and the adoption of latest display panels like OLED flexible panels. Also, companies are investing in research and development of technologically advance displays that are high energy efficient, provide better picture quality and are easier to recycle.
Asia Pacific is witnessing exponential growth during the forecast period
Geographically, Asia Pacific will witness substantial market growth opportunities owing to booming automotive as well as the consumer electronics industry in countries like China and India. This regional market growth is majorly supported by the presence of major market players which are investing heavily in expansion facilities. For instance, in August 2019, LG Display finishes its US$4.2 billion investment in OLED plant in China to begin the mass production of premium big screen television; the plant is expected to roll out sixty thousand OLED sheets per month from 2020. Also, South Korean multinational conglomerate Samsung, recently announced their plan to invest nearly US$11 billion in the research and development of OD-OLED TV panels production lines in South Korea till 2025, with the first production line to start in 2021.