Display Panel Market Trend – Enabling a World View Through the Looking Glass
The display panel market is estimated to be propelled to unprecedented heights primarily because virtually every accessible consumer electronics are made commercially available with display panel integrated with them. Rising affluence, declining prices, growing R&D investments and product innovations as well as increasing demand from emerging makers such as India and especially China where eCommerce has penetrated almost every consumer segment demographically as well geographically, are a few of the core factors that are expected to drive the growth of the display panel market.
Besides, display panels have emerged as the go-to medium of enticing prospective consumers and for disseminating information of products and services. They are ere also being increasingly deployed in public places for notifying the public about various aspects related to traffic and weather conditions, stock market information, and so on. Albeit the current downward draft in public events due to the prevalent lockdown measure which has been enforced by national governments because of COVID 19, the recent development of a vaccine and a plausible normalization of business activities will lead to a surge in concerts and other such events where display panels are an inseverable component, which is also expected to facilitate the market growth. From the perspective of consumers electronics, wall-mounted television units, cellular phones, as well as notebooks, among others are poised to further drive the growth of the market, especially during present times due to COVID19 where work-from-home, video conferencing, eCommerce activities and availing entertainment through web streaming services have surged to an unprecedented level.
The Led Type of Display Panels and Its Variants Like Oled Is Expected to Occupy a Significant Share of the Market
From automotive to handheld devices, the LED type of display panel and its variants are expected to reach stratospheric heights due to its benefits like lightweight, superior image quality, and better form factor. For example, in February 2020, it was announced that the large 2021 Cadillac Escalade SUV, which is packed with enticing features have added the much-awaited 38-inch curved display, which is reportedly the largest monitor in the automotive industry by employing OLED technology which as per the organization has the twice the pixel density of 4K TVs. On the other side of the spectrum, Samsung Display has reportedly launched an optimized OLED display for smartphones enabled with 5G claiming that the display features, less blue light emissions and will consumer comparably less power. The display has been reportedly certified by SGS SA (SIX: SGSN), which is a swiss based multinational company headquartered in Geneva, that provides inspection, verification, testing, and certification service. Earlier in May 2019, it was announced that renowned fabless display drivers and semiconductors manufacturer, among others Himax Technologies, Inc. (NASDAQ: HIMX), has reportedly launched its flexible OLED automotive display driver and timing controller for China’s largest display manufacturer, BOE Technology Group Co., Ltd.,
The Rising Volume in Technology Goods Trade and Recent Trade Agreements Are Poised to Drive the Display Panel Market
The semiconductor industry has witnessed and facilitated the value of trade in the international import of ICT goods (information and communications technology) (reaching above 2 trillion USDs, in 2017) has been spurred by the demand of electronics components, which is increasingly being integrated with IoT (Internet-of-Things) device applications. Among the myriad of ICT products, trading in electronic components continued to expand, which was just below consumer electronics subsequently translating to the fact of swift transitioning to digitization and growing affordability. In 2018, sales of eCommerce [both B2B (business-to-business) and B2C (business-to-consumer)] had hit just above 25 trillion USD mark which was up by 8% from 2017 and was equivalent to 30% of the GDP (global gross domestic product) that particular year. Further due to the global pandemic to which the world has succumbed, there will be an upswing in digital solutions, services, and tools.
Share of Ict Goods as Percentage of Total Trade, Imports
Source: UNCTAD
Moreover, as of 1st June 2020, there are reportedly 303 regional trade agreements in force. The most recent being the European Union Vietnam Free Trade Agreement (EVFTA) & EU-Vietnam Economic Integration Agreement (EVIPA) between EU and Vietnam, whereby 65% of duties on EU exported to Vietnam will be eliminated while the remaining will be phased out gradually in coming 19 years. On the other hand, 71 % of duties on exported originating from Vietnam will be eliminated while the remaining be eliminated over seven years. Being an ambitious agreement that seeks to eliminate almost 99% of customs duty between the EU and Vietnam, it is expected to facilitate investments in electronics, among others, in which EU investors have been most active. Whereas for Vietnam the elimination of tariff will benefit key export industries which also include those engaging in the manufacturing of smartphones and electronic products which is yet to extensively develop.
Investment Policies in Emerging Economies Are Expected to Bolster the Display Panel Market Growth
For instance, with respect to India under National Policy on Electronics 2019 (NPE 2019) that envisages placing India as the global hub for ESDM (Electronics System Design and Manufacturing), the government of India has proposed Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing which was notified in April 2020. Under this scheme, the incentive has been linked with production to bolster domestic production and attract large investments in mobile phone manufacturing and specified electronic components. This has resulted in organizations like the Taiwanese multinational electronics contract manufacturer Foxconn (TWSE: 2317) (the trading name of Hon Hai Precision Industry Co., Ltd) and Wistron Corporation (TWSE: 3231) which is a major original design manufacturer in Taiwan, along with local handset makers Dixon, Karbon and Lava to reportedly apply for the production-linked incentive (PLI) scheme. These investments are expected to spur the activities and increase more engagements in the consumer electronic industry thereby facilitating the growth of the display panel market. Besides, after launching the world’s largest mobile factory in India in 2018, with plans to reportedly double the current capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, as of January 2020, it was reported that the company has plans to invest in a smartphone display manufacturing plant in the state of Uttar Pradesh.
