Hardware

Demand for flat panel displays soars as prices rise

Graphic courtesy of Omdia.

May 18, 2021

Large-area flat panel display prices increased by over 50% in 2020 due to increased demand from consumers, according to Omdia's latest OLED and LCD Supply Demand & Equipment Tracker.

A combination of tight capacity for thin film transistor display screens, along with material and component supply bottlenecks, is fueling a panel shortfall, which is increasing demand further, as set manufacturers buy more panels to fulfill demand in 2021, according to a press release on the Omdia tracker results. In the second half of 2021, TFT supply/demand is forecast to trend above 10% almost reaching similar glut levels to 2019.

The supply of display driver ICs for FPDs remains highly restricted and will continue to be the main bottleneck in the supply chain for most of 2021, the release said. DDIC for mobile applications are expected to remain insufficient until 2H21, while DDIC for large-area applications are forecast to be inadequate until at least the end of 2021.

A string of accidents has created a historically tight glass market and caused an unusual industry average price increase of several percentage points, according to the press release. The lack of investment in polarizers and base films in 2019 caught the industry off guard when demand turned around in 2020. Aside from these three main components, many other materials are also in tight supply, which is affecting makers in different ways, supporting inflationary price trends.

"Although multiple caveats remain about how both supply and demand will trend over the coming months, the modeled glut level is a leading indicator that the next cycle is now on its way, which implies falling prices, utilization and profitability," Charles Annis, practice leader for display manufacturing, technology and cost at Omdia, said in the press release. "Industry players should consider the implications when planning business strategies for the next two years."