Europe to be Key for TV Panel Demand Recovery in 2024

Omdia's senior analyst states that the revival of TV demand in Europe in 2024 will determine the outlook for the global TV panel market this year.

Omdia's Senior Principal Analyst, JinHan Ricky Park, notes that inflation and the Russia-Ukraine conflict have diminished the demand for TVs in Europe. However, the European Championship in 2024 and the Paris Olympics, taking place from June to August, offer a beacon of hope.

JinHan Ricky Park mentions that TV manufacturers have placed orders with display panel manufacturers in advance, preparing for promotional activities ahead of these sporting events.

According to the analyst, this scheduling is much faster than in the previous two years, indicating that TV manufacturers are optimistic about an increase in sales in Europe coinciding with these events.

JinHan Ricky Park points out that despite the speculative demand and the faster-than-expected price increase for TV panels in the first quarter, the inventory levels of TV manufacturers and display panel makers remain at a "historical low."

He states that these expectations must be converted into actual demand promptly, or it could harm the overall TV panel market in the latter half of the year, traditionally the peak season for panel demand.

Meanwhile, Chinese display panel manufacturers are reducing the operational rates of liquid crystal display (LCD) panel factories to prevent price drops. JinHan Ricky Park notes that they are unlikely to increase operational rates again in the short term, given the still low prices.

He also mentions that last year, the shipment of OLED TV panels was significantly lower, with the operational rates of LG Display and Samsung Display's OLED production lines below 50%.

JinHan Ricky Park suggests that to achieve growth in large OLED TV panels, a yearly sales volume of at least 10 million OLED TVs is necessary, requiring the participation of Chinese TV manufacturers, not just top TV companies like Samsung, Sony, and LG.