Smartphone Display Panel Shipments to Surge in 2023, but Anticipate a Downturn in 2024: TrendForce

There will be a substantial surge in smartphone display panel shipments for the year 2023, anticipating a year-on-year (YoY) increase of 8.7 percent.
Forecast on display panel makers TrendForce reportThis boost is primarily attributed to the growing demand in the smartphone repair market, the flourishing second-hand smartphone market, and the release of new smartphone models driving replacement purchases. However, looking ahead to 2024, the market dynamics are expected to return to a more typical cycle, potentially resulting in a drop in demand for second-hand devices and device repairs, TrendForce, a leading market research firm, said.

The forecast for 2024 indicates a decline in smartphone panel shipments to approximately 1.82 billion pieces, reflecting a YoY reduction of 9 percent. This dip in demand is attributed to the market stabilizing and the decreasing demand for refurbished devices.

In terms of individual panel makers and their smartphone panel shipments, a shared concern is the decline in demand for LCD panels. Presently, BOE holds the top position globally in smartphone panel shipments, estimated to reach around 560 million pieces in 2023. However, due to weakening demand for LCD panels, BOE is projected to face a YoY drop of 7.2 percent in 2024, reducing its estimated shipments to around 520 million pieces.

Following BOE, Samsung Display Company (SDC) secures the second spot. Anticipating a decline in demand for rigid AMOLED panels, SDC is estimated to ship around 350 million pieces in 2023. For 2024, SDC’s shipment figures are projected to remain relatively stable, supported by ongoing demand related to Samsung and Apple devices.
Region-wise display panel makersTianma claims the third position with an estimated shipment of around 175 million pieces in 2023. As Tianma expands collaborations with various brands, there is a possibility of a marginal YoY increase of 5.2 percent in shipments for 2024, totaling approximately 190 million pieces.

Innolux and HKC secure the fourth and fifth positions, respectively, in smartphone panel shipments. Innolux is projected to ship about 140 million pieces in 2023, with an expected decline to about 125 million pieces in 2024 due to shrinking demand in the LCD market.

On the other hand, HKC is estimated to achieve a shipment volume of 170 million pieces in 2023, poised to grow to 180 million units in 2024, exhibiting a YoY growth of 4.2 percent, attributed to cost advantages from the G8.6 production lines.

TrendForce also highlighted that SDC is the only maker among the top five facing a decline in shipments in 2023 due to the decreasing demand for rigid AMOLED panels. This indicates a gradual shift in market shares from rigid AMOLED panels made by South Korean manufacturers towards the production of flexible AMOLED panels by Chinese makers, enhancing cost competitiveness.

Taiwanese display panel makers are able to hold onto their proportion thanks to the support from a-Si LCD, while Japanese makers are dropping in shipments due to their expeditious exit from the smartphone market.

South Korean display panel makers are maintained at 23-25 percent of shipments attributable to their technology of flexible AMOLED panels and the corresponding adoption by high-end smartphones.

Chinese display panel makers have ascended from 54.8 percent (2022) to 63.7 percent (2023) in overall shipments of smartphone panels, which showcases their continued significance in the overall smartphone supply chain.