LCD Industry Analysis: LCD has become the mainstream display panel technology; overseas capacity reduction is accelerati

According to the "In-Depth Analysis of China's LCD Industry Status and Investment Prospect Research Report (2025-2032)" published by Guanyan Report Network, LCD, short for Liquid Crystal Display, is a type of flat panel display.

LCDs have advantages such as low power consumption, small size, and low radiation, making them the mainstream choice in the display panel market. According to data, the global display panel market size in 2023 was approximately US$118.1 billion, with LCD panels accounting for approximately 63% and OLED panels accounting for approximately 36%.

LCDs are primarily used for television and computer screen displays. TV panel shipments remained stable, with an increase in average size. In the first half of 2024, LCD TV panel shipments reached 123 million units, roughly the same as in the first half of 2023. The average size of LCD TV panels in the first half of 2024 reached 51.3 inches, an increase of 1.9 inches from 49.4 inches in the first half of 2023.

Notebook computer panel shipments and area saw significant growth. Global notebook computer panel shipments reached 87.45 million units in the first half of 2023 and 94.8 million units in the first half of 2024, representing a year-on-year increase of 8.4%. The global notebook computer panel shipment area reached 5.21 million square meters in the first half of 2023 and 5.68 million square meters in the first half of 2024, representing a year-on-year increase of 9.0%.

From a notebook computer technology perspective, LCD A-Si dominates, accounting for 73% in 2023; in addition, LCD Oxide, LCD LTPS, and OLED panels account for 17%, 7%, and 3% respectively.

Global LCD capacity remains stable. From 2022 to 2028, global LCD capacity is expected to grow at an average annual rate of less than 1%. During the same period, the capacity of 8th generation and above LCD factories is expected to increase, but the capacity of 7th generation and below LCD factories is expected to decrease.

From a regional perspective, overseas production lines are gradually withdrawing, and the global LCD industry chain is shifting to mainland China. Japanese, Korean, and Taiwanese manufacturers have successively ceased production, accelerating capacity retreat. For example, Korean company LGD is closing or selling its LCD production lines, Japanese company JOLED has declared bankruptcy, and panel manufacturers such as Panasonic, AUO, and Innolux have also successively announced the sale or closure of LCD panel production lines. Samsung has sold its Suzhou G8.5 production line to CSOT (China Star Optoelectronics Technology) and converted all three of its LCD production lines in South Korea to QD OLED, completely exiting the LCD market. LG Display's P7 G7.5 factory in Paju, South Korea, closed in the fourth quarter of 2022. Its Guangzhou factory, under a loss-reduction strategy, has shut down 100,000 large panels/month capacity, operating only 110,000 large panels, and is actively seeking a sale. Japan's JOLED declared bankruptcy in 2023. Sharp's 10th-generation LCD factory in Japan suffered a loss of 5.44 billion yuan in 2023, a threefold increase in losses; this factory has also ceased operations and is seeking a sale. Taiwan's Innolux plans to close its Fab4 G5.5 production line with a monthly capacity of 150,000 large panels, while its G6 production line and AU Optronics' G6 production line are adjusting their downstream applications.

Meanwhile, mainland China's LCD panel industry has risen to become the world's largest LCD producer. According to data, from 2017 to 2022, the market share of LCDs in mainland China increased from 25.2% to 55.5%; the market share of LCDs in Taiwan remained at around 30%; the market share of LCDs in South Korea decreased from 32.9% to 13.5%; and the market share of LCDs in Japan decreased from 13% to 2.9%.