A forecast has emerged that capital expenditure (CAPEX) on display equipment will expand due to increasing demand for organic light-emitting diodes (OLEDs). Notably, China is expected to account for 77% of global OLED equipment investment and significantly increase its production capacity.
According to a recent quarterly report on display equipment investment and market share released on the 17th by Counterpoint Research, the expenditure on display equipment is expected to reach $77 billion for the 2020-2027 period, revised up by 2% from previous estimates.
OLEDs are projected to account for 58% of total display equipment expenditure due to significantly higher capital investment costs compared to liquid crystal display (LCD) technology. LCDs are expected to represent about 40%.
The institutional sector of OLED is anticipated to grow to $8.3 billion by 2027 due to increased adoption of OLED technology in smartphones, tablets, and laptops, as well as the expansion of average panel sizes. However, demand for IT-related OLEDs is expected to be lower than anticipated, and some 8.7-generation lines may prioritize the production of smartphone panels.
By country, China is expected to account for 83% of total display equipment expenditure, while South Korea will represent 13%. India is projected to take 2%, and Taiwan 1%. China is anticipated to dominate the display equipment expenditure, comprising 93% in LCD equipment expenditure, 77% in the OLED sector, and 85% in the micro OLED sector.
A representative from Counterpoint Research noted, "China will maintain its lead in equipment expenditure until 2027," adding, "As an emerging player, India is expected to expand its infrastructure centered on domestic investment in LCDs."