OLED TVs set to make their mark in China
OLED TVs gradual global march continues.
China is set to become the OLED TVs largest market in the next 2-3 years according to a report from AVC.The allure of outstanding image quality, wide viewing angles and slim design aesthetic could see China become the No.1 market for OLED TVs, outstripping demand from Japan and Europe where OLED is already becoming popular.
Information from China based data visualisation consultancy, AVC (All View Cloud) indicates that OLED TV sales will rise to 380,000 units this year. This is compared to 120,000 in 2017 and 210,000 in 2018. This steady increase is set to rocket, however, with projected sales hitting 800,000 in 2020 and then up to over 2 million by 2021 or 2022, which will make China the world’s largest market for OLED TVs.
The same data set showed that total global sales of OLEDs in 2018 was 2.4 million, indicating that China’s market alone will almost match worldwide sales from just 4 years previously.
AVC president, Wen Jianping, said, "The OLED TVs will be the future development direction of the TV industry, and also an opportunity for TV manufacturers to expand their profit margins."
Companies are keen to look at alternatives to LCD models since that market is becoming saturated and homogenised and one of China’s largest TV manufacturers, Skyworth are set to expand their own OLED production using panels from LG Display under a partnership that has been in place since 2013, by investing 10 million yuan ($1.5 million) to promote and market the still relatively new technology.
LG Display will be bringing their new Chinese fab in Guangzhou online in August 2019 which they hope will alleviate some of the potential production issues created by the ongoing export issues with Japan. Moreover, given the huge potential of China’s OLED market, LG will be wanting to increase their own market share from a reported 16% in 2017.
Park Changhyuk, general manager of LG Display China's promotion unit, said, "The penetration rate of OLED TVs in China is relatively low, while such type of TV has become the representative of high-end TVs in the United States, Europe, Japan and other countries."
AVC’s figures demonstrated that Skyworth’s own OLED TVs had a 46%market share back in 2017 and they were looking to expand on that when in September 2018 the Chinese TV company announced investment of $73 million to expand OLED TV module capacity from 300,000 to a million annual units. However, with total nationwide TV sales of 47.7 million units in 2018, OLED remains a niche portion of the TV market and even if overall annual sales remain at around 48 million, even at an estimated 800,000 OLED units sold in 2020, the market share will still only be 1.6%.
The current low penetration does mean there’s huge potential for growth and with manufacturing capacity increasing and improved production techniques (Inkjet Printing of panels) potentially lowering costs, OLED sales could be stimulated as the AVC report indicates.
Do AVForums members see this as good news for OLED fans around the globe or will the Chinese market create scarcity elsewhere as production plants based in China fulfil homegrown demand first? Let us know what you think in the discussion thread.
Source: www.oled-info.com, www.chinadaily.com.cn
Image Source: Business Korea
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