"OLED Panel Demand Continues to Expand... H1 Sales Expected to Increase 36% YoY"

[Asia Economy Reporter Jeong Hyunjin] As demand for OLED panels surges, related sales in the first half of this year are expected to increase by 36% compared to the same period last year.

On the 24th, display market research firm DSCC recently projected that OLED panel sales will reach $9.1 billion (approximately 10.17 trillion KRW) in the first quarter and $7.5 billion in the second quarter of this year, representing increases of 38% and 34% respectively compared to the same periods last year. According to DSCC, OLED panel sales in the fourth quarter of last year rose 46% year-on-year to $11.9 billion, and for the entire last year, sales recorded $33.2 billion, a 20% increase compared to the previous year.

Due to the impact of COVID-19, demand for electronic devices such as smartphones, TVs, and laptops has surged rapidly, which appears to have significantly increased OLED panel demand as well. DSCC explained, "Shipments of smartphone panels increased, and sales related to other electronic devices including TVs and smartwatches expanded." Sales of OLED panels for smartphones are expected to increase by 36% year-on-year in the first quarter alone, and sales of OLED panels for TVs are also projected to rise by 55% during the same period. OLED panels used in smartwatches and other electronic devices are expected to increase by 35% and 40% respectively in the first quarter of this year.

(Data provided by market research firm DSCC)

The total number of OLED panel shipments is predicted to reach 181 million units in the first quarter of this year, a 41% increase compared to the same period last year. Of these, 143 million units are expected to be smartphone OLED panels, and 29 million units smartwatch OLED panels, according to DSCC. Notably, OLED panels for TVs are expected to increase by 89% year-on-year in the first quarter and by as much as 133% in the second quarter.

In terms of area, TVs accounted for the largest share of total OLED panels in the first quarter of this year. DSCC expects the total shipment area of OLED panels in the first quarter to be 3 million square meters, a 63% increase year-on-year, with TV OLED panels occupying 1.5 million square meters, representing 49% of the total. Following that, the shipment area of smartphone OLED panels is projected to be 1.4 million square meters, accounting for 44%. DSCC stated, "The shipment area of TV OLED panels surpassed smartphones for the first time in the third quarter of last year, then smartphones overtook TVs again in the fourth quarter, but TVs are expected to hold the largest share again in the first quarter of this year."

DSCC analyzed that Samsung Display leads the market for smartphone OLED panels, while LG Display leads for TV OLED panels. Regarding smartwatches, fierce competition is underway, and Chinese panel maker BOE is expected to surpass LG Display and Truly in the first quarter of this year.