According to industry sources and market research firm Display Supply Chain Consultants (DSCC) on Feb. 12, LG Display has recently agreed to a long-term supply contract with Samsung Electronics for OLED and Liquid Crystal Display panels.
LG Display is expected to supply Samsung Electronics with 5 million white-OLED (W-OLED) panels over the next five years. The delivery volume for this year is estimated to be between 700,000 and 800,000 units, which is up to eight times higher than the estimated supply of 100,000 to 200,000 units last year.
Samsung Electronics currently has four OLED TVs in its lineup, including 55-inch, 64-inch, 77-inch, and 83-inch models. DSCC expects LG Display to supply additional 42-inch and 48-inch panels and it is anticipated that all products will be equipped with LG Display’s OLED panels.
The supply of LCD panels will also increase. DSCC estimated that LG Display supplied Samsung Electronics with about 3 million LCD panels last year. This year, the supply is expected to increase to between 5 million and 6 million units.
The expansion of OLED TV sales in the global TV market is also a positive development for LG Display. The Paris Olympics and Euro 2024 are set to take place in Europe this year. Europe accounts for 40% of the total OLED TV sales volume, hence an increase in demand is anticipated.
Market research firm Omdia predicts that the share of OLED TVs in the premium TV market will exceed 50% for the first time this year. Additionally, the shipment of OLED TV panels is expected to increase by 20% from last year to 6.6 million units. By 2028, the shipment is forecasted to surpass 10 million units for the first time.
Currently, LG Display holds over 80% (based on shipment volume) of the global OLED TV panel market. Notably, LG Display is the only company in the world capable of mass-producing OLED TV panels larger than 80 inches.