The latest insights from TrendForce shed light on the LCD TV panel market, indicating a potential disconnect between projected shipment volumes and targets due to the prevailing uncertain global economic conditions, counteracting the typical boost in market demand spurred by major sporting events.
Projections for 2024 suggest a shipment of approximately 242 million LCD panels, signaling a growth rate of about 3.4 percent. Notably, the area shipped is expected to surge by 8.6 percent, propelled by a burgeoning preference for larger screen sizes.
However, panel makers have collectively aimed for a target of 251 million units in 2024. The intensified performance of LCD TV panels, coupled with fierce competition in the IT panel market, is resulting in a heavier reliance on TV panels to maximize production capacity. This inclination is pivotal in motivating increased production for the year. Moreover, speculations around potential mergers and acquisitions in the panel sector are rife, drawing considerable attention for their possible impact on the broader panel market.
The narrative of the LCD TV panel market reflects a fluctuating trend. Following a phase of regulated production capacity utilization, panel inventory levels rebounded impressively from the second half of 2022 to the first quarter of 2023.
Subsequently, demand surged, driven by holiday promotions and strategic pricing, resulting in a price uptick from March 2023 onwards. While a dip in prices occurred in the fourth quarter of 2023 due to lower-than-projected brand sales, swift adjustments in production levels by panel makers mitigated the decline.
Several key players are making strategic moves to optimize their positions in this evolving market landscape. BOE, for instance, is broadening its product portfolio with new 40” and 60” models, aiming to bolster its shipment volumes and targeting 61.3 million units in 2024. Conversely, HKC plans a significant reduction in its 32” panel production, redirecting focus to new 40” models and highly competitive 85” panels to enhance capacity usage, setting a shipment target of 38 million units.
Other players like CSOT are expanding capacities for larger panels and setting conservative shipment targets, while Sharp, Innolux, AUO, and CHOT are fine-tuning their strategies to optimize production, targeting varying shipment volumes based on market trends and their product offerings.
As the LCD TV panel market navigates the interplay between economic uncertainty and technological advancements, the strategies and actions of these key players will shape the industry’s trajectory in the coming year.