The premium-market OLED TV market could become the next key battleground between South Korea’s leading brands and China’s rising stars as LCD TV demand suffers from a global recession and inflation concerns.
Omdia released its latest market outlook on Tuesday (20th), and it is estimated that global LCD TV shipments in 2022 will decrease by 5% to 197.35 million units, the first time since 2010 that it has fallen below 200 million units. Recession and inflation are usually harder hits for groups with lower purchasing power, so concerns are dragging down LCD TV demand.
However, even though the overall TV market is weakening, demand for OLED TVs with relatively high prices is still strong. Omdia predicts that the total global OLED TV shipments will reach 7.44 million units this year, an annual increase of 14%.
The global OLED TV market is currently dominated by South Korean brands, led by LG Electronics with a market share of over 60%, followed by Samsung Electronics, which just launched its QD-OLED TVs for overseas markets earlier this year.
Although the OLED panel market is still dominated by South Korean companies, China plans to further expand its investment in OLED panels in order to make up for the slump in LCD TV demand after South Korea was kicked out of the top LCD panel market last year. The rapid rise of Chinese competitors is unavoidable. Threats to South Korea’s dominance in the OLED panel and TV market.
In terms of state subsidies, from 2010 to Q1 this year, BOE, a major Chinese panel manufacturer, has obtained a total of 17.4 billion yuan in government subsidies to expand its OLED production line. The company is targeting 100 million OLED panel shipments this year.
Once the Chinese panel factory starts to seize the OLED market with low price strategy, the plot of South Korea’s failure in the LCD market may be staged again.
In order to avoid repeating the same mistakes, South Korean panel manufacturers have proposed to the government to include OLED technology in advanced core technologies to ensure that the country attaches great importance to technology and related industries. The South Korean government is expected to review the proposal next month.