Forecast: LCD TV panel orders set to rebound
February 15, 2023
The demand recovery for LCD TV panel orders from the global top Korean and Chinese TV makers is nearby according to Omdia’s TV Display & OEM Intelligence Service. Omdia estimates a strong rebound of 19 per cent year on year (YoY) is expected in Q2 2023 along with the anticipation of reaching 161.4 million units or an increase of 8 per cent YoY focused in 50-inch and larger screen sizes. If this 2023 buy-plan materialises, the market is about to return to the peak level of 2020 purchase volumes or 3 per cent higher than the historical four-year average.
With a strong market on the horizon, Samsung Electronics and LG Electronics have begun proactively planning purchasing volumes for 2023 where there will be a possible surge in panel demand by 22 per cent YoY in 2023 from a 14-year low base as seen in 2022.
Top-tier Chinese TV makers reached a new record high of panel purchases in Q3 2022 – Q4 2022 as they fulfil the bigger TV production plans established thanks to the reopening of the Chinese market allowing the makers to capture and increase their global market share especially in North America.
“Chinese TV makers tend to strategically refill more low-priced panels in the oversupplied market to secure business opportunities for brands and OEMs ,” according to Deborah Yang, Chief Analyst in Omdia’s Display research practice. “Moving into 2023, it is expected Chinese TV makers will increase their purchasing volumes though there will be relatively weak demand in Q1 2023 which will be followed by demand uptick from Q2 2023 before the seasonal demand spike from the second half of the year.”
“It is forecast that from 2023, global TV brands and OEMs will eventually start to increase their panel orders and the new replacement cycle, especially that of larger-sized TVs. Despite many economists having negative expectations of every outcome in 2023, top tier TV makers in particular leading Chinese players are optimistic for their TV business, especially in the 50-inch and above size category which will in turn help the LCD TV panel market”, Yang concluded.