After a period of downturn due to economic slowdown and weak demand for IT devices, the display industry is on the verge of a significant rebound. The surge in demand for Organic Light Emitting Diode (OLED)-based displays for laptops and tablets, driven by the artificial intelligence (AI) boom, is accelerating investment in the sector.
According to the quarterly report “ICT Industry Trends and Outlook” published by the Korea Export-Import Bank’s Overseas Economic Research Institute on March 12, the previously stagnant display market is gradually showing signs of recovery.
In the fourth quarter of last year, the display market grew by 3.8% year-over-year to US$32.6 billion. Specifically, OLEDs, which account for 45% of the display market, saw a 7.4% increase from the previous year due to rising shipment volumes for smartphone panels and increasing demand for gaming monitor panels. Despite challenges such as weakened demand for Liquid Crystal Displays (LCDs) in TVs and IT panels and falling TV panel prices, LCDs have grown year-over-year for two consecutive quarters.
The recovery in the display market is also reflected in the performance of domestic companies. Samsung Display reported a 4% increase in sales to 9.66 trillion won in the fourth quarter of last year compared to the same period the previous year. LG Display also saw a 1% increase in sales to 7.4 trillion won during the same period.
Exports are also showing a positive trend. In the fourth quarter of last year, display exports increased by 13.8% year-over-year to US$6.42 billion, marking a successful rebound after five consecutive quarters of year-over-year decline.
With the display market struggling due to a recession-induced demand slump, a robust growth trend is expected from this year onward. The display market is forecast to grow by 5.4% compared to last year.
In particular, with the recovery of TV panel demand and an increase in IT panel demand, the OLED market is expected to outpace the overall display market with a growth rate of 7.9%. In response, domestic display companies are ramping up their investments in IT-use OLEDs.
Samsung Display recently established an 8.6 generation IT OLED line, and LG Display has raised approximately 1.3 trillion won through a rights offering. LG Display plans to use these funds to enhance competitiveness across all areas of the OLED business and lay the groundwork for future growth.
Meanwhile, in the display market, OLED sales are expected to account for 35%, with smartphones making up 77% of OLED demand, followed by TVs at 8% and IT panels at 5%.