According to relevant data, as the demand for ultra-large TV panels of 60 inches or larger is growing rapidly, the annual shipments will increase nearly four times in 10 years after breaking through 10 million for the first time in 2016.
Annual shipments of 60-inch and larger TV panels, including liquid crystal displays (LCDs) and organic light-emitting diodes (OLEDs), are expected to exceed 20 million in 2018 and reach 54 million in 2025, accounting for the entire TV 19% of the panel demand market. The total shipment area is expected to increase from 12% in 2016 to around 3 times in 2025 to 33%.
Ricky Park, head of research at IHS Markit, said: "The growth of the ultra-large TV panel market will be driven mainly by the 10.5-generation large-scale factory investment, as these plants can produce very large-scale TV panels with economies of scale. Production costs and supply prices, which led to a decline in TV prices."
BOE began mass production of panels at the 10.5-generation plant in the second quarter of 2018, the first time in the world. Once the production yield of the plant's very large TV panels is stabilized after production optimization, the production cost of the plant is expected to be lower than the production cost of the 8.5-generation plant.
In order to catch up with BOE, CSOT and Sharp are accelerating their investment in their 10.5th generation fabs, with the goal of mass production of ultra-large TV panels in 2019, which will rapidly increase the supply of ultra-large TV panels. The increase in production will intensify competition in the market, thereby further reducing the price of television, which will promote the demand for large TV sets.
High demand for ultra-large TVs is also expected to drive panel makers to adopt ultra-high definition (UHD) and 8K technologies to further improve image quality. At the same time, this trend will also promote the evening of broadcast systems and content services, further stimulating consumer demand for ultra-large TVs.
