The center of gravity in the global organic light-emitting diode (OLED) market is shifting from smartphones to high-value panels for laptops, monitors, and vehicles. While quantitative growth in the smartphone OLED market has stalled due to a decline in shipments, Korea's display industry is accelerating a profitability-focused overhaul by targeting markets with high technical barriers, such as IT and automotive OLEDs and sensor-integrated panels.
According to market research firm Counterpoint Research on the 8th, smartphone OLED panel shipments this year are projected to fall 3% from a year earlier. By contrast, OLED laptop panels, buoyed by AI PC replacement demand, are expected to grow in the 30% range, and OLED monitors, supported by demand for high-spec gaming, are projected to increase about 45%.
The two leading domestic display corporations are also rapidly reshaping their business structures in line with this market shift. LG Display posted an operating profit of 146.7 billion won in the first quarter, marking a profit for three consecutive quarters. Despite the seasonal off-peak period, it raised OLED's share of total sales to 60%, and the average selling price (ASP) per area rose 55% from a year earlier. Analysts said the strategy of reducing reliance on low-end smartphone panels and increasing supply of higher-priced OLEDs for vehicles and IT led to improved results.
Samsung Display is accelerating its push to preempt the mid-sized OLED market for laptops and tablets with its 8.6th-generation IT OLED line. According to Samsung Electronics' first-quarter results, the display institutional sector recorded 400 billion won in operating profit, maintaining profitability. The industry said Samsung Display has raised the Production yield of its 8.6th-generation IT OLED line to the 80% range and could begin mass production as early as next month. Because the 8.6th-generation line uses larger motherglass than the existing 6th generation, it can improve production efficiency for mid-sized panels for laptops and tablets and is expected to serve as a key foundation in future cost competition with Chinese companies.
Technology competition is expanding beyond simple picture-quality improvements to sensor integration and enhanced reliability. On May 5 (local time), at "SID 2026," the world's largest display event held in Los Angeles, the United States, Samsung Display unveiled a 500 PPI-class sensor OLED that can measure blood pressure and heart rate with just a fingertip touch. By integrating an organic photodiode (OPD) into the OLED panel to recognize biometric information, this is a case of expanding the display from a simple output device to an input sensor for AI devices.
At SID 2026, LG Display introduced a third-generation tandem OLED that reduces power consumption by 18% and more than doubles lifespan compared to existing products. Tandem OLED stacks two organic emitting layers to enhance brightness and durability. Because it commands a higher price than conventional OLED and is more likely to lead to long-term supply contracts, it is cited as LG Display's next-generation revenue source in the automotive and IT OLED markets. In particular, in the automotive market, where Autonomous Driving and large-screen infotainment are spreading, high luminance and long lifespan are seen as key competitive strengths.
The strategic shift by domestic companies is also tied to the pursuit from Chinese display makers. As Chinese companies expand their share in the mid- to low-end smartphone OLED market, Samsung Display and LG Display are moving the battleground to areas with high technical barriers, such as IT, automotive, and sensor-integrated OLEDs. The strategy is to preempt markets with higher prices and profitability rather than compete on simple shipment volume, thereby maintaining a gap with Chinese companies.
A display industry official said, "Chinese companies are rapidly increasing their market share in the mid- to low-end smartphone OLED market, but domestic companies are changing the arena of competition by pushing high-value technologies like 8.6th-generation IT OLED and tandem OLED," and added, "The phase of quantity-driven growth centered on smartphones has ended, and we have entered a stage of quality growth that raises profitability, focusing on automotive and IT panels."