Analysis on Development Trend of LCD Panel
Analysis on Development Trend of LCD Panel - Table of contents:
LCD is still the mainstream display technology for quite a long time, and will continue to grow from the perspective of output panel area.
Although from a global point of view, the output value of LCD panels may have passed the stage of high growth. However, from the perspective of LCD capacity distribution structure, the transfer of production capacity to Chinese mainland is a general trend.
The high-generation production line of Chinese mainland panel has entered a centralized stage. From the development trend of LCD panel, Chinese mainland LCD panel market is still in a period of high growth.
For upstream display material companies, it will be a golden stage of development, because several transfers of LCD production capacity in history have driven the rapid development of local upstream display material companies.
1. LCD panels made in China
LCD and OLED are currently the two mainstream panel display technologies. Among them, OLED has advantages in response speed, contrast, visual angle, color saturation, flexible display, etc. and its industrialization in various countries is also in the ascendant.
However, there are still many limitations in the application of OLED panels, including the low rate of good products, especially in large-size display equipment, which makes the cost high all the time. Secondly, the core technology of OLED panel production is mainly concentrated in the hands of Korean SDC and LGD, which restricts the promotion and application of OLED panel products to a certain extent.
LCD because of its large scale, relatively mature technology, broad market, and there is still room for innovation in LCD technology, especially in large-size flat panel display for a long time, LCD will still be the mainstream display technology.
In terms of market size, the market size of LCD is 130.8 billion US dollars, the market size of OLED is 23.6 billion US dollars, and LCD is still in the dominant position.
In terms of the panel shipping area, LCD area demand 180 million square meters, accounting for nearly 97%, far ahead of OLED’s 50 million square meters area demand.
In addition, according to the area distribution of the downstream demand of LCD, TV accounts for the largest proportion of downstream applications of LCD, while TV is a large-size equipment, and OLED still has many problems such as low rate of good products in large size, so the possibility of short-term LCD market being quickly eroded by OLED products is low, and LCD will still be the mainstream display technology for a long time.
However, the trend of large size of TV is obvious. With the higher cutting efficiency of the older generation in large size, the large size of TV will be further accelerated. In addition, the demand of LCD continues to increase in some emerging fields, which promotes the growth of the global demand area of LCD.
2. Global LCD pattern
Chinese mainland LCD panel factories began to force, global LCD panel production capacity also continues to shift from Japan and South Korea and Taiwan to the Chinese mainland.
According to survey data, Chinese mainland LCD capacity will accelerate expansion, and Chinese mainland production capacity will account for 58% of the world’s total capacity by 2023.
2017-2020 production and can drive mixed crystal demand of about 250 tons, although the real demand and operating rate and production progress related, but in recent years is indeed high generation line concentrated production stage, will undoubtedly greatly drive mixed crystal demand, domestic mixed crystal plant is also expected to gradually increase the penetration rate of high generation line.
3. Development trend of the industry
The accelerated rise of China’s domestic LCD panel enterprises will also lead to the rapid growth of upstream display materials, especially under the background of mixed crystal localization, domestic mixed crystal factories will enter a golden period of development.
Compared with 2017, the mixed crystal localization rate did not continue to increase significantly in 2018. The market is worried that the domestic mixed crystal localization rate of 30% is not low, and there is great pressure to continue to increase, and the growth of domestic mixed crystal plants will slow down in the follow-up.
With the full production of high generation lines and the improvement of domestic mixed crystal properties, it is an inevitable trend for these high generation lines to use domestic mixed crystal materials. 2019 will be an accelerated year, and there is still room for improvement in the localization rate of mixed crystals.
Due to the concentration of domestic high-generation lines, domestic mixed crystal demand is still in a high growth stage, so the growth of mixed crystal plants, on the one hand comes from the continued improvement of the localization rate, on the other hand, it also benefits from the rapid growth of domestic mixed crystal demand.
As the industry bottomed out and the commercial use of 5G is approaching, the volume and price are expected to rise in the future;
In terms of electronic chemicals, it shows that the localization of materials continues to promote substitution, coupled with the domestic high-generation LCD production line continues to put into production, revenue will continue to maintain rapid growth, in addition, with the upstream matching 50 tons of single crystal production capacity release, coupled with the proportion of high-generation line mixed crystal products, the overall gross profit margin is expected to be maintained.
LCD panel production capacity has been transferred to the mainland, and domestic high-generation lines have been put into production. Therefore, the mainland LCD panel market is still in a high growth period.
Judging from the development history of LCD capacity transfer in the past, the rise of continental panel factories will drive the localization of upstream display materials. With the full production of the new high-generation line and the improvement of the performance of domestic mixed-crystal materials, the localization of high-generation line mixed-crystal materials will enter an accelerated period.
In the mixed crystal volume stage, the income increases rapidly, during which the expense rate is expected to accelerate the decline, and the higher generation line mixed crystal is more profitable.