2017 TV Shipments Forecasted Down 1.8% but Up 7.3% in Area.
April 10, 2017 

WitsView estimates that worldwide shipments of LCD TV panels for 2017 will total 255.6 million units, down 1.8% in unit volume from 2016, however, a larger average size result in growth in total shipment area of 7.3%. Panel makers have shifted towards larger sizes for the TV market because of two major factors.
 

• First, the market supply of 55-inch TV panels is plentiful, so panel makers need to move up the size brackets to differentiate themselves.
• Second, high panel prices are squeezing margins of TV sets. International TV brands are promoting larger and high-end models (e.g. 65- and 75-inch TV sets) that can generate more profits. 

 
TV panels sized larger than 60 inches are projected to account for 5.2% of the total TV panel shipments for 2017, a 3.6% increase Y/Y. The average size of TV panels will expand by 2 inches this year to 45.5 inches. WitsView estimates that 75-inch TV panels will reach 1.5 million units in 2017, more than doubling last year’s volume of 0.7 million units with the annual growth rate reaching 114%. Currently, there are just four suppliers of 75-inch panels from South Korea and Taiwan. Major South Korean panel makers have the advantage of being supported by their respective group companies should take more than 70% of the global shipment share this year. Taiwanese panel industry is trying to catch up in the production of 75-inch panels but its share in the total shipments is projected to be under 30%. South Korean and Taiwanese panel makers are also increasing the share of the 65-inch segment in their product mixes due to the general upswing in prices. WitsView estimates that total shipments of 65-inch TV panels for this first quarter will enjoy a growth rate of 104% Y/Y, from 1.1 million to 2.2 million units. The panel industry is expected to add additional capacity for the 65-inch segment, and annual shipments are projected to reach 11 million units, up 45% Y/Y from 7.6 million units. South Korean panel makers are expected to expand their global shipment share of 65-inch panels to nearly 60% this year, whereas Taiwanese competitors are going to account for almost 40%. Around just 2% of the total 65-inch panel shipments for 2017 will come from Chinese manufacturers. Chinese panel companies will not begin to significantly raise their 65-inch panel production and catch up to South Korean and Taiwanese competitors until 2018, when their Gen-10.5 fabs start to operate. From an OLED perspective, LG expects to produce 1.8m TVs, 40% will be 55” and 60% will be 65” and a small percentage will be 75”.

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