Contrarian Strategy in Large and Extra-Large Size Competition
Sales Expected to More Than Triple to 509,800 Units This Year Compared to Last Year
Popular as Gaming and Second TVs Due to Increased Home Staying
[Asia Economy Reporter Kim Heung-soon] LG Electronics' 48-inch organic light-emitting diode (OLED) TV, the world's first of its kind, is being treated as a "precious item." In the global TV market, where premium and extra-large sizes are fiercely competing, the 48-inch product, classified as a small size, is creating a sensation. This product has pioneered a new market with a "reverse thinking" approach by utilizing leftover panels from large OLED TV production, attracting significant attention from the display and TV industries.
According to market research firm Omdia on the 26th, 48-inch OLED TVs sold 167,000 units worldwide within six months of their launch in June last year. This year, sales are expected to more than triple to 509,800 units, and by 2024, they are projected to increase to 928,300 units. This figure is more than twice the projected sales volume of the large 70-inch class.
An LG Electronics official said, "Gamers who want to enjoy games on OLED TVs, which have clear picture quality and fast response times, prefer the 48-inch small product over monitors," adding, "With more time spent at home due to COVID-19, demand is also increasing from those purchasing the product to use as a 'second TV.'"
As the 48-inch OLED TV creates a stir in the existing market, the supply of OLED panels for 48-inch TVs is also tight. An LG Display official stated, "Not only LG Electronics but also global manufacturers such as Sony and Philips are making 48-inch OLED TVs, so supply cannot keep up with demand."
LG Display currently produces 48-inch TV OLED panels exclusively at its Guangzhou manufacturing plant (fab) in China. This product is made from the leftover substrate after cutting two 77-inch diagonal panels from an 8.5-generation glass substrate (about 5.5㎡). While exploring ways to utilize the discarded "scraps," they created 48-inch products that fit the specifications through a multi-model generation (MMG) process that mass-produces several panels of different sizes from one substrate.
This year, the OLED panel market size is expected to reach $38 billion (about 42 trillion KRW), a 28% increase from last year, due to surging demand not only for smartphones, laptops, and TVs but also for the automotive industry. Accordingly, LG Display plans to expand production of small panels alongside large TV OLED panels. Soon, they will also mass-produce 48-inch TV OLED panels at the Paju plant.
An LG Display official said, "As demand increases, we can produce panels exclusively for 48-inch instead of using the MMG process," adding, "We are also considering mass production of OLED panels in smaller monitor sizes."
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