New research from Omdia’s Large Area Display Market Tracker indicates that for the first time, the monthly LCD TV display shipment weighted average size surpassed the 50-inch display size in May 2023. Omdia’s research highlights an irreversible trend of the larger size in TV display purchase and sell-through and represents a positive signal for the display manufacturing industry to digest their capacity from area perspectives.
2022 was a devastating year for the TV display and OEM makers with TV display demand, in both unit and size format, declining each month. However, as panel prices reached the bottom in 3Q22,panel makers shifted their TV panel offerings to the larger sizes, especially the 55-inch and 85-inch made in Gen8.5 as well as the 65-inch and 75-inch made in Gen10.5 fabs. Subsequently, the larger size TV demand rebounded substantially and consistently from 4Q22 and then progressively through 2023.
The weighted average size of the LCD TV display shipment was 46.8-inch in August 2022, and rebounded to 49-inch in December 2022, 49.5-inch in March 2023 and for the first time exceeding 50-inch to 50.2-inch in May 2023 as recorded for display makers like BOE, ChinaStar, CHOT, LG Display and Sharp.
The larger size trend is indicative of demand for better picture quality and visual performance as the larger TVs offer features such as the mini-LED backlight with dimming contrast ratio, better color gamut with the quantum dot, better refresh rate, as well as the super slim bezel with the GOA (Gate on Array) display driver IC technologies.
According to David Hsieh, Senior Director in Omdia’s Display research practice, “Omdia predicted that the TV display replacement cycle will be changing from unit base replacement every 6-7 years to area base replacement every 4-5 years, in a faster cadence. Consumers are convinced the larger size TV is the one they should purchase, resulting in an irreversible trend as end users will not go back to the smaller size.
“Increasing demand for larger sizes of LCD TV display will lead to greater TFT LCD capacity consumption and consumer expectations for superior features within their larger size displays will continue in the long-term.”
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