Market Trends of Flat Panel Display Industry
Consumer Electronics Industry to Witness a Significant Growth
- The consumer electronics industry is poised for substantial growth during the forecast period, driven by the increasing adoption of flat panel displays in products ranging from mobile devices and televisions to PCs. A growth in demand for high-quality images and enhanced saturation, especially in consumer electronics, is set to propel this market growth. Notably, innovations in the television segment are expected to play a pivotal role in amplifying the market's potential.
- The television market's expansion is largely attributed to the rollout of advanced products and technologies, such as 4K display resolution, OLED televisions, and Smart TVs. Televisions boasting 4K resolution offer image quality fourfold that of standard HD models. Meanwhile, OLED technology elevates picture quality to remarkable standards. Moreover, continuous innovations from industry giants like LG, Sony, and Samsung are projected to significantly elevate the demand for flat panel displays (FPDs).
- Numerous corporations, including Samsung and others, are making substantial investments in diverse innovations that contribute to the growing popularity of the market. For example, Samsung is focusing on Quantum Dot technology, which improves flat-panel LED displays, commercial televisions, and curved widescreen monitors by showcasing a broader spectrum of colors and enhancing brightness to fully leverage technologies such as High Dynamic Range (HDR). Additionally, Samsung's QLED technology is bolstered by AI-driven machine learning, enabling the upscaling of 4K UHD and Full HD content to 8K resolution while maintaining quality.
- Moreover, the mobile device sector is anticipated to significantly contribute to potential market opportunities in the forthcoming years. In numerous instances, mobile devices integrate flat-panel displays with touch screen technology, enabling users to engage with the display intuitively. The growing investments in the smartphone manufacturing segment acorss the countires like India, Japan, China, United States, and others is expected to drive the market's growth significantly.
- According to ICEA, the market size of key electronic products in India is projected to hit USD 109 billion by 2026, with the mobile phone segment commanding a dominant share at USD 80 billion. This robust growth can be attributed mainly to government initiatives, especially the Production Linked Incentive (PLI) scheme. As a result, India now satisfies 97% of its domestic mobile phone demand. Such advancements are poised to foster a conducive environment for the studied market's growth.
- Furthermore, the emergence of these displays has propelled the progress of portable computing and communication technologies. The rising popularity of content creation, streaming, and gaming has catalyzed the development of high-performance personal computers. With activities like shopping and banking moving online, consumers are on the lookout for reliable devices to navigate these platforms. Moreover, the surge in demand for personal computers, largely driven by the uptick in remote work, underscores this trend. Collectively, these factors are set to amplify the demand for flat panel displays.
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Asia Pacific is Expected to Witness Significant Growth
- The Asia Pacific region is expected to experience the highest growth rate during the forecast period, primarily attributed to the expansion of the electronics industry, government efforts to promote OLED technology, and the accessibility of raw materials at reduced costs within the area. Furthermore, increasing investments from global market participants in emerging economies like India, China, Japan, and others are further propelling the growth of the flat panel display market.
- The ongoing advancements in the region's electronics sector are anticipated to propel market growth substantially. For example, as reported by IBEF, India's export of electronic products saw an impressive surge of 50.52% in FY23, amounting to USD 23.57 billion, in contrast to USD 15.66 billion in FY22. The critical export items in this industry encompass mobile phones, IT hardware including laptops and tablets, consumer electronics such as televisions and audio/video equipment, along industrial and automotive electronics.
- Furthermore, the increasing demand for 4K and 8K ultra-high-definition (UHD) displays has further accelerated market growth in the region. In addition, the widespread adoption of smart devices, such as smartphones and smart televisions, has played a crucial role in propelling the market's upward trend. Major domestic companies are making substantial investments to maximize the potential of flat panel displays. For instance, Samsung reports that OLED displays are increasingly dominating the smartphone market and are phasing out LCDs in various devices. Projections for OLED market growth this decade vary, with estimates ranging from 10% to exceeding 20% annually.
- Samsung Display intends to significantly increase its manufacturing capacity for OLED flat panel displays, aiming to double it within the next three years more than. This strategic move is designed to uphold its leading position globally amidst fierce competition from Chinese manufacturers. In April 2023, the company committed to establishing new production lines for OLED displays in Asan, located south of Seoul, with an investment of KRW 4.1 billion (approximately USD 3.1 billion). These substantial advancements by the company in the Asia-Pacific region are expected to propel market growth.
- Additionally, increasing investments in the region's automotive industry are poised to fuel the market's growth. Flat panel displays are opening up exciting possibilities for designing automotive interiors. Heightened demand for connectivity and automation in the automotive sector creates lucrative market opportunities. Urbanization trends in Indonesia, Singapore, and India are pivotal in boosting automobile sales, production, and acceptance. Moreover, the surging adoption of electric vehicles in countries such as China is set to create significant market prospects.
- Flat panel displays are well-suited for rigorous applications in hospitals and clinics, such as vital sign monitoring and bedside management. Consequently, the ongoing advancements in the industrial and medical fields throughout the APAC region are anticipated to propel market growth. The demand for medical devices in the APAC area has seen substantial increases, driven by rising income levels, increased investment from the private sector, and favourable government initiatives.
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