"OLED Demand Increase Expected to Expand Display Facility Investment"

"China Expected to Maintain Lead in Equipment Spending Every Year"

With the increasing demand for Organic Light Emitting Diode (OLED), it is forecasted that display capital expenditure (CAPEX) will expand. By country, China, which is rapidly catching up with Korea's technology, is expected to maintain its lead in equipment spending for the time being, while India is also anticipated to emerge as a new player focused on domestic demand.

According to the quarterly display equipment investment and market share report released by Counterpoint Research on the 17th, the scale of display equipment spending from 2020 to 2027 is expected to reach $77 billion, 2% higher than previously estimated.

Boeing Smart Cabin booth equipped with LG Display's aviation OLED. Curved and large OLED panels. LG Display

In the case of OLED, the capital investment cost is higher than that of Liquid Crystal Display (LCD), accounting for 58% of the total display equipment spending. LCD is expected to account for about 40%.

The OLED sector is projected to grow to $8.3 billion by 2027 due to increased adoption of OLED in smartphones, tablets, and laptops, as well as the expansion of average panel size. However, demand for OLED in the information technology (IT) sector is lower than expected, and some 8.7-generation lines may prioritize producing smartphone panels first.

By country, China is expected to account for 83% of total display equipment spending, Korea 13%, India 2%, and Taiwan 1%. China is projected to dominate equipment spending with 93% in LCD equipment, 77% in OLED, and 85% in micro OLED sectors.

A Counterpoint Research official stated, "China will maintain its lead in equipment spending annually until 2027," adding, "As an emerging player, India is expected to expand its infrastructure mainly through domestic LCD investment."