The shipment area of large size panels is expected to increase by 3.5% in 2023

According to a report from the industry research and research agency Display Home, despite the global economic downturn, shipments of large size display panels in 2023 are expected to increase by 0.8% compared with 2022, and the shipped area will increase by 3.5% annually.

The Display Home report shows that the global economic recession and the impact of the Russia-Ukraine war have caused demand for large size display panels to freeze since the beginning of 2022. In 2022, shipments of large size display panels will decrease by 8.2% annually, and the shipped area will decrease by 3.1% annually.

Therefore, in order to clear channel inventory, display panel buyers will significantly reduce orders from mid-2022, resulting in a significant drop in display panel prices in 2022.

Display Home said that even though display panel prices are at historically low levels, manufacturers will start reducing production in the second half of 2022 due to reduced demand, especially as notebook display panel inventories are relatively high.

Display Home estimates that unit shipments and shipped area of large size display panels are expected to increase in 2023; although inventory problems have eased recently, information electronic (IT) display panels such as notebooks may take more time to clear inventory.

According to Display Home research, the shift in the TV panel market to larger size products will help increase shipment area in 2023. Shipments of TV display panels 65 inches and above will decrease by 5% year-on-year in 2022, mainly due to the global economic recession and display panel manufacturers 'low utilization of the 10.5-generation production line.

However, Display Home expects shipments of TV panels above 65 inches in 2023 to increase by 17% compared with 2022.

Display Home estimates that supply and demand for large size display panels will start to improve from the second half of 2023. Display panel manufacturers will adopt a strategy of producing according to actual order-receiving conditions to prevent panel prices from falling. As display panel buyers start replenishing inventories in mid-2023, inventory problems will be alleviated.