Eight developments in the global display panel market

Global display panel shipments reached 162 million in 2020, up 12.9 percent year on year. In the era of Internet + epidemic, with the rapid penetration of digitalization into every scene of people's life, study and work, PC demand has become a new rigid demand. This change will become a new potential energy for the development of the global display market in 2021. Under this potential energy, the upgrading and differentiation of the panel market will also be displayed. Based on this, Sigmaintell IT research team analyzes the development trend of the global display panel market in 2021 as follows:

Potential energy section

Trend 1: Changing user habits create potential energy demand for display panels

According to Sigmaintell's consumer research on PC users, after the epidemic, the computer usage habits of Chinese digital users are changing, and the change related to the display usage habits is mainly reflected in the increase of the demand for multi-screen interaction between the monitor and the laptop. Before the epidemic, the proportion of direct interactivity between monitor and laptop of the surveyed consumers was less than 20%, but it increased to 31% after the epidemic. In overseas markets, more and more respondents said that they use monitor as a secondary screen to directly connect with Chromebook or laptop in home study and office to improve the use experience or relieve the feeling of fatigue. This increase suggests that the changes in consumption infrastructure or habits described above are expanding display usage and contributing to demand growth.

Trend 2: The scale of demand potential energy support continued to grow, but the growth rate dropped significantly

In the normal state of epidemic prevention over the past year, people quickly construct a new mode of using the monitor in their work, study and life. The stickiness of human-machine relationship and the scene, frequency, validity and precision of human-machine interaction have all been changed. Such changes in the consumption infrastructure will show an irreversible trend. Based on this, Sigmaintell further predicts that the global display panel shipment will reach 166 million in 2021, a slight increase of 2.5% year-on-year.

However, from the perspective of the market development rhythm, the market seasonal index will still be affected by the development of the epidemic situation, which deviates from the normal year. Due to the ongoing epidemic overseas and the high demand for inventory replenishment through channels and brands at the end of 2020, the overall shipment scale is expected to maintain a high year-on-year growth in the first half of 2021. In the second half of the year, as the rigid demand for machines gradually enters the saturation period, combined with the impact of the epidemic mitigation factors, the overall demand will be stable and decline.

The Competition

Trend 3: Panel manufacturer strategy differentiation, the competitive landscape will change dramatically

The display panel market is also facing high demand and tight supply compared to other application markets, but what is special is the dramatic change in the competitive landscape, namely, the complete withdrawal of Samsung Display (SDC). According to Sigmaintell statistics, Samsung Display in 2020 in the global display market market share of 12%, the shipment of nearly 20 million pieces, more importantly in the esports and surface market with 38% and 61% of the market share, the market position is significant. Samsung announced that it will officially stop the supply in the first quarter of 2021. For most major brands, the supply side contraction will be significant. At the same time, other panel manufacturers have also developed their own strategies and positioning.