major listed companies in the industry: BOE (000725); Shen Tianma (000050); Visino (002387); Huaying Technology (000536); Longteng Optoelectronics (688055); Hehui Optoelectronics (688538), etc.

Core data of this article: Panel industry scale, competitive landscape, etc.

Industry Overview

1. Definition

The panel industry mainly refers to the display panel industry for electronic devices such as televisions, desktop computers, notebooks and mobile phones. Now is the era of information, information display technology in people's social activities and the growing importance of daily life, human information access to 80% from the visual, a variety of information system terminal equipment and the interaction between people need to display information to achieve. The panel industry has become the leader of the optoelectronic industry, second only to the microelectronics industry in the information industry, and has become one of the most important industries. Display panel products mainly include liquid crystal panel (LCD), plasma panel and organic light emitting diode panel (OLED). At present, plasma panels have been completely withdrawn from the market due to factors such as large thickness, low resolution and high price.

2. Analysis of industrial chain: clear boundaries between upper, middle and lower reaches of the industry

upstream of the panel industry to Lobo as the representative of the glass substrate suppliers, Weida Optoelectronics and other polarizer providers, Dongxu Optoelectronics and other color film providers, Lonli Technology and other backlight light source providers, Jiangfeng Electronics and other target providers. Midstream as the main body of the panel industry, mainly for panel and display module manufacturing. Downstream for 3C electronics, industrial control and other display terminals. By size, it can be divided into small size-mobile phone panel, medium size-notebook display panel, large size-TV, display panel, etc.

Industry development history: from import dependence to independent production

In the 1980 s, China's panel industry started. This period mainly produced CRT display panels. In the 1990 s, with the development of LCD panel technology, China began to lay out LCD panels. In 1996, China's first LCD panel manufacturer was established. At the beginning of the 21st century, China's panel industry developed rapidly; many well-known domestic and foreign panel companies built factories and put into production in China, and their production capacity expanded rapidly, and LCD panels became the leading products. After 2010, AMOLED panel technology began to rise in China. Domestic panel enterprises began to lay out AMOLED panel production. At present, China's panel industry has become the world's largest panel production base, leading the global LCD panel supply. At the same time, it is also constantly exerting force in the fields of new technologies such as large size and curved surface panels.

Industry policy background: policy support panel cluster construction

In December 2022, the Central Committee of the Communist Party of China issued the "Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035)", which mentioned the need to further promote the development of national strategic emerging industrial clusters and build a national strategic emerging industrial base. Comprehensively enhance the core competitiveness of the information technology industry, and promote technological innovation and application of artificial intelligence, advanced communications, integrated circuits, new displays, and advanced computing. As of 2023, China's panel industry development plan is as follows:

Industry Development Status

1. Development of OLED in China

With the rapid development of the new generation of information and communication technologies represented by the mobile Internet, the Internet of Things, cloud computing, big data, etc., as application platforms and terminals, consumer electronics such as smartphones, tablets, and wearable electronic devices The market demand for products and smart home products continues to grow, and the shipments of smart terminals continue to rise.

As a key component of the above-mentioned intelligent terminal equipment, the market demand for display devices is growing rapidly. The mainstream display technology applied in the market has experienced four main display technology forms: CRT, PDP, LCD and OLED. OLED display is mainly divided into PMOLED and AMOLED two categories, benefiting from high brightness, high resolution, high color performance, low energy consumption and other advantages, AMOLED has basically replaced PMOLED, become the current OLED mainstream application products.

From the existing production line of OLED in China, BOE is in the leading position in the production line and production capacity layout. China's OLED industry layout production line enterprises are very concentrated, only a few enterprises have the capital and technology to carry out the relevant production capacity layout. Production lines are mainly concentrated in South China, Southwest China and East China.

From the perspective of the scale of production capacity, since 2011, with the commissioning of China's OLED production line, the rapid release of production capacity. According to DSCC data, from 2018 to 2022, China's OLED production capacity will continue to increase, from 1.5 square kilometers in 2018 to 21.8 square kilometers in 2022. According to TrendForce, China's global share of OLED panel production capacity will be 43.7 percent in 2023, compared with 54.9 percent in South Korea, and the global market share of China's OLED panel production capacity is rapidly catching up.

From the perspective of market size, as OLED display technology continues to mature, production costs are gradually decreasing, and more low-end smart device products are equipped with OLED panels, and the market demand for OLED industry continues to expand. In 2017, the full-screen market broke out completely, and domestic and foreign mobile phone brands launched their new full-screen machines one after another. Apple iPhone X, a symbol of high-end mobile phones, also adopted a full-screen design, pushing the full-screen to a new climax. In 2022, with the release of OLED production capacity and the continuous improvement of yield, OLED panel prices have declined, and major smartphone manufacturers will sink OLED and even flexible OLED to low-end models.

According to Omdia, the global OLED panel market will be $45.5 billion in 2022. From the downstream structure, smart phones are the largest application market, IT, car, TV and other areas of penetration growth space is larger. According to DSCC data, China Mobile's OLED production capacity will account for 47% of the world's total in 2022, and OLED TV/IT/automobile production capacity will account for 43% of the world's total. According to this, China's OLED market is expected to account for about 45% of the global market, and China's OLED industry market will account for about US $20.5 billion in 2022.

the global OLED industry market size is expected to further increase to 50.2 billion yuan in 2023. At the same time, China is expected to benefit from the continued increase in OLED panel market share, with the market size expected to be 24.1 billion US dollars in 2023.

2. Development of LCD in China

China has become the world's largest LCD panel production base, leading the global LCD panel supply. At the same time, it is also constantly exerting force in the fields of new technologies such as large size and curved surface panels. Mainland LCD manufacturers steadily expand production, the current Chinese mainland announced the construction of LCD/panel production line of more than 38. Overall, the average investment amount of the production line exceeds 20 billion yuan, and the investment scale of LCD manufacturers' projects is huge.

The high-generation TFT-LCD panel production line generally refers to the production line that mainly produces large-size LCD panels above 32 inches. It is generally defined as the six-generation line or above, also known as the high-generation line or the high-generation line. According to the statistics of high-generation LCD panel production lines from 2022 to 2024, BOE has added four new high-generation production lines, and Huaxing Optoelectronics and Huike have added four new high-generation production lines. Beijing Oriental, Huaxing Optoelectronics two head LCD panel manufacturers continue to consolidate the existing scale advantages. In the future, the improvement of high-generation LCD production capacity will further improve the application of large-size panel products such as TV and commercial display, and to a certain extent create more demand for the compatible application of carrier glass in the LCD panel field.

T in the current LCD display industryFT-LCD belong to the main and largest market products. Benefiting from the growth in demand for LCD TVs, tablets and smartphones, the TFT-LCD panel market has a bright future, driving a large demand for TFT-type liquid crystal materials. In 2022, China's TFT-LCD output is about 0.157 billion square meters and the demand is 0.172 billion square meters.

Downstream development of the industry

1, TV and display are the main application areas

From the perspective of the structure of downstream applications, taking LCD as an example, the end products are mainly TV and displays. Among them, TV accounts for more than 60%. The demand for displays also exceeded 10%.

2. China's annual output of color TV sets is close to 0.2 billion

With the development of TV display technology and the improvement of intelligent level, the development of new TV categories is accelerated. New products such as smart TVs, ultra-high-definition TVs, cloud TVs, and 3D TVs are beginning to appear in the eyes of consumers. At the same time, national policies are also actively promoting the development of new TV categories. For example, in June 2022, the State Administration of Radio, Film and Television issued the "Opinions on Further Accelerating the Development of HD UHD TV" to encourage the development of UHD TV. Driven by policy, technology and other factors, the penetration rate of new TV products will gradually increase.

According to the data disclosed by the National Bureau of Statistics, China's color TV production showed a fluctuating upward trend from 2016 to 2022 and the annual output was more than 0.158 billion units. In 2022, China's color TV production was 0.195 billion units.

3, China's car display market size continues to increase

Car display refers to the display screen installed inside the car. Its main functions are driving assistance and entertainment. According to the position of the display screen, the car display can be divided into central control display, instrument display, head-up display, front and rear Large entertainment screen, rearview mirror screen.

From 2018 to 2022, the overall market size of China's automotive display industry showed an upward trend, with a market size of 102.4 billion billion yuan in 2022, up 9.99 percent year-on-year.

4. China's electronic computer output has shown a downward trend in recent years

In recent years, with the gradual maturity of the computer industry, my country's electronic computer industry has maintained a steady and rising trend. The cumulative output of electronic computers and the cumulative output of microcomputers have increased to varying degrees year-on-year. Compared with the trough in 2016, the current computer industry is in an upward phase, which is expected to be related to the renewal cycle and the slow economic recovery. According to the National Bureau of Statistics, China's production of electronic computers in 2022 was 0.45 billion, down 6.7 percent from the same period in 2021; in January-August 2023, the production of electronic computers was 0.23 billion, down 22.3 percent from the same period last year.

5. China's smartphone shipments show a fluctuating trend

According to data from the Institute of Information and Communications Technology, from 2012 to 2022, domestic smartphone shipments showed a fluctuating trend. For the full year 2021, 0.343 billion smartphones were shipped, up 15.9 percent year-over-year and accounting for 97.7 percent of mobile phone shipments in the same period. In 2022, 0.264 billion smartphones were shipped, down 23.1 percent year-on-year, accounting for 97.1 percent of mobile phone shipments in the same period.

Industry competition landscape

From the perspective of OLED and TFT-LCD market segments, the core participants in the OLED market mainly include BOE, Visino, Huaxing Optoelectronics, Shentianma, Hehui Optoelectronics, Youda, Xinli, Rou Yu and other manufacturers. Among them, BOE, Visino, Huaxing Optoelectronics due to strong financial strength in China's OLED market is more prominent. The TFT-LCD market has BOE, Huike, Huaxing Optoelectronics, Qunchuang, Youda, Tianma CLP Panda, CLP Rainbow, Longteng Optoelectronics and other enterprises. Among them, Beijing Oriental, Huaxing Optoelectronics, Group, Youda because of its production capacity advantages and lead the Chinese TFT-LCD market.

From the perspective of flexible OLED panel shipping companies, China's flexible OLED panel market is concentrated in the hands of a few companies, mainly including BOE, Tianma, Visinno and Huaxing Optoelectronics. From 2022 to 2023, BOE is firmly at the top of China's flexible OLED industry, with a stable market share of more than 50%. In addition, Tianma flexible OLED products are rapidly released, and the share of flexible OLED panels will increase significantly in 2023.

Omdia measures the market share of global TFT-LCD companies in 2022 based on the investment trends of each company. In 2022, the largest market share of global TFT-LCD enterprises is BOE, accounting for 25.2 percent, followed by Huaxing Optoelectronics, accounting for 15 percent, and the third is Huike shares, accounting for 11 percent.

Industry Development Prospect and Trend Forecast

The rapid launch of China's high-generation line has had a significant impact on the global panel industry, and the upgrading of production lines has strengthened the ability to adjust production lines. Production lines are limited and technologically backward production capacity will be phased out. Especially with the transfer of high generation line capacity to small and medium size, it will have a significant impact on the whole industry. Due to the large number of customers and large product differences, small and medium-sized panels have put forward higher requirements for the marketing capabilities of enterprises. Domestic panel manufacturers will undoubtedly have an advantage. Domestic terminals and panel companies have also strengthened mutual cooperation, which will cause a greater impact on foreign companies. The elimination of backward production capacity in the world has been further accelerated.

For more research and analysis of this industry, please refer to China Panel Industry Production and Marketing Demand and Investment Forecast Analysis Report by the Prospective Industry Research Institute.

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