Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 26, according to BusinessKorea, China is catching up with South Korea in the field of OLED panels. Although South Korea is still far ahead of China in market share, China has caught up with South Korea by more than 10 percentage points in terms of production capacity.

According to the latest data from ▲ source PexelsTrendForce, China accounts for 43.7 per cent of OLED panel production, compared with 54.9 per cent in South Korea. Just five years ago, China's OLED panel production capacity was less than 10%. Today, it is more than 40%, only 10 percentage points less than South Korea.

Samsung Display, which once held more than 80 per cent of the market share in the small and medium-sized OLED panel market, fell to 54.7 per cent in the first quarter of this year, according to Omdia. Meanwhile, BOE, a Chinese company that once competed fiercely with LG Display for second place, jumped to second place with a share of 19.2 per cent in the first quarter, beating LG Display.

South Korea has occupied the top spot in the global display market for 17 years since 2004, but was overtaken by China's display industry in 2021. However, there is still a big gap in the OLED panel market between China and South Korea, with South Korea accounting for 81.3 per cent of the market and China's 17.9 per cent.

China's dominance in the global liquid crystal display (LCD) market is becoming more secure. Chinese mainland's market share in LCD reached 55.5% in 2022, compared with 27.6% in Taiwan, 13.5% in South Korea and 2.9% in Japan. Chinese mainland is the only region with an increase in market share.

South Korean display industry insiders worry that China's share of OLED panels is expanding faster than it has done in the past in LCD panels.

According to the Korea display Industry Association, it took China 10 years to reach 20 per cent of the small and medium-sized LCD panel market, but only eight years for the small and medium-sized OLED market. In order to get rid of China's catch-up in the OLED field, South Korean companies are going all out to invest heavily in OLED panels.

In April this year, Samsung Display announced that it would invest 4.1 trillion won (CTOnews.com Note: currently about 22.96 billion yuan) by 2026 to build the world's first 8.6G IT OLED display production plant in Eshan, Zhongqingnan Road. The intention is to significantly widen the gap with Chinese competitors in OLED display technology.

At the same time, the OLED panel market will continue to grow. According to Omdia, demand for OLED displays is expected to grow by an average of 11% a year from 2022 to 2030. TrendForce predicts that the share of OLED screens in the smartphone market will exceed 50 per cent for the first time this year and 60 per cent in 2026.

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