TV panel shipments are expected to be 254 million in 2022, which will decline for four consecutive years

Abstract: January 3 news, according to Omdia's latest report, in order to cope with the oversupply in the fourth quarter of 2021, panel manufacturers have transferred more production capacity to IT panels, or larger size TV panels, it is expected that the overall TV panel shipments in 2022 will be about 254 million pieces, a year-on-year decrease of 2%, which will also be the fourth consecutive year of decline in shipments. The trend of large size continues, with shipments of 65-inch, 75-inch, and 85-inch panels increasing, while shipments of panels under 55 inches will continue to shrink.

January 3 news, according to Omdia's latest report shows that in order to cope with the oversupply in the fourth quarter of 2021, panel manufacturers have transferred more production capacity to IT panels, or larger size TV panels, it is expected that the overall TV panel shipments in 2022 will be about 254 million pieces, a year-on-year decrease of 2%, which will also be the fourth consecutive year of declining shipments. The trend of large size continues, with shipments of 65-inch, 75-inch, and 85-inch panels increasing, while shipments of panels under 55 inches will continue to shrink.

The Black Friday promotion in 2021 has compressed the price operation space of the brand factory because the cost of TV panels is at a high point, but walmart, the leader of the US retail channel, has bucked the trend and played the slogan of "Go big at home", represented by Walmart's own brand Onn, etc., to launch very cheap prices, which has promoted sales in the North American market.

For example, Onn launched a 70-inch LCD TV and promoted it at a price of $398, compared with Samsung and LG Electronics, the two largest 70-inch LCD TV brands, and its average retail price of 70-inch TVs is about $650.

Omdia noted that while the killer $398 price for a 70-inch TV is only on Black Friday, it can see a sharp drop in the price of the next 70-inch TV, which also directly affects the competition for sub-65-inch TVs, impacting the market sales of mid-size TVs such as 50-inch and 55-inch.

From the perspective of panel supply, in response to the oversupply in the second half of 2021, panel manufacturers continue to transfer the capacity of 8.5 generation factories and 8.6 generation factories to monitor panels and laptop panels. In particular, the mainland panel factory, in the 10.5 generation factory capacity focus on large-size TV panels, 8.5 generation factory, 8.6 generation factory capacity using the way of set cutting, the production of large-size TV panels and IT panels.

Overall, the supply of panels under 55 inches will gradually decrease in 2022 as the number of panels below 65 inches, 75 inches, and even 85 inches continues to increase.

Omdia estimates that the global supply of TV panels is expected to be 254 million in 2022, a decrease of about 2% compared to 259 million in 2021. This is also the fourth consecutive year that TV panels have declined in terms of shipments since 2019.

On the other hand, in order to improve the added value, TV manufacturers are expected to continue to increase the shipment of high-end TV sets in 2022, such as quantum dot TVs, Mini LED backlights, and OLED TVs. However, quantum dots and Mini LED backlit TV panels are not only still expensive, but also correspondingly increase in non-panel costs. In contrast, with the large number of LGD production capacity, the price of OLED TV panels continues to decline, so the shipment of OLED TV panels will increase significantly in 2022.

Editor: Xin Zhixun - Lin Zi Source: Industry and Commerce Times