Display Industry Trend 2018

2. Pune, Maharashtra, India, February 12, 2018 —The display panels are expected to be oversupplied in 2019 and beyond, while being undersupplied till 2018 as various players are establishing new Gen 6 and above facilities. Samsung’s decision of closing LCD plants and investing in OLED facilities created undersupply in the LCD market; hence, several Chinese panel manufacturers ramped up their production to fill the supply gap. BOE, with its Gen 10.5 facility, is expected to become a leading supplier of TFT-LCDs, in terms of panel area, 2019 onwards. Larger sheets will eventually increase the production capabilities of panel suppliers. Revenues of large panel suppliers increased 12% Y-o-Y in 2017 and the display panel area shipments for large applications (>9 inches) increased by 10 million square meters. There was a significant growth in unit shipments in 2017 as compared to 2016. According to Mr. Sachin Garg – Associate Director at MarketsandMarkets, Revenue growth is expected to continue till 2019 due to the increasing penetration of high-priced panels offering better resolution, wide viewing angle, and attractive design. The growth in area production will continue in the coming years due to ever-increasing average panel size for various applications; however, saturated unit shipments will affect the ASPs of panels, 2019 onwards. 60 Micro-LED Panels by 2025 50 Six Year CAGR (%) 40 30 Direct-View LED Displays by 2023 OLED Panels by 2023 20 Large Format Displays by 2023 10 Display Materials & Components by 2023 0 0 5 10 15 20 25 30 35 40 45 50 Market Size (USD Billion) Source: MarketsandMarkets Report Repository “The market for smartphone panels is reaching saturation—crossing 2 billion shipments in 2017; flexible panels are expected to gain more than 50% market share 2019 onwards compared with rigid ones while LCD panels are expected to decline to 30% market share by 2022”, said Mr. Sachin Garg. The market for desktops and televisions is somewhat saturated, in terms of unit shipments; however, the demand for 4K television panels is increasing rapidly. Furthermore, the demand for small panels is increasing for wearables—NTE devices, smartwatches, and smart bands; however, it will contribute to a smaller portion of panel makers’ revenues. Panel makers can expect high demand for signage applications where direct-view LED displays are expected to lead in the long term. The in-depth analysis of market trends and developments are provided in Large Format Display (LFD) market, a report released by MarketsandMarkets Research Private Ltd.

3. LARGE FORMAT DISPLAY (LFD) MARKET 2023 2017 5% 7% LED-backlit LCD 20 25 43 Direct-View LED (Fine-Pixel) Direct-View LED (Large-Pixel) 56 OLED 14 30 Source: MarketsandMarkets Analysis on Large Format Display (LFD) Market The report offers industry insights for LFD display types—video walls & standalone; technology— LCD, OLED, direct-view LED (fine-pixel & large pixel), and others; display size; brightness level; application— indoor & outdoor; and verticals. Automotive is another opportunity for panel makers; the demand from the non-premium automotive segment will increase for LCD panels, while the demand for flexible panels will increase from the premium segment. OLED is the new trend in displays, thanks to the increasing demand from smartphone and smart wearable vendors; however, the ASP of OLED panels is declining rapidly despite the fact that only South Korean players are mass-producing OLED panels. Sustaining significant profit margin will be a huge challenge for panel makers when various players such as BOE, Tianma, Truly, CSOT, and JOLED enter the market. Increased competition between the players is expected to further decrease the ASP and shrink profit margins. Worldwide demand for OLED panels is projected to reach $48.8 billion by 2023, growing at a CAGR of 15.2% between 2017 and 2023, according to Rajeev Rajput – Senior Research Analyst at MarketsandMarkets. OLED DISPLAY PANEL DEMAND 100% 90% 80% Market Share (%) 70% 60% 50% 40% 30% 20% 10% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 US China Japan South Korea Taiwan Europe Rest of the World Source: MarketsandMarkets Analysis on OLED Market Converting billion-dollar investments, made for establishing Gen 6 and above display facilities, into profit despite declining ASPs of display panels will be a major challenge for panel markers. Chinese panel makers, especially BOE, CSOT, and CEC Panda may lead the display market accounting for around 40% of the total display area production (LCD+OLED) by 2022. In OLED market, Chinese players, especially Tianma, Truly, BOE, and CSOT will further account for more than 60% display

4. area production by 2022. Government support in terms of finance and land offerings in exchange of minor stake will be the prime factor for the growth of these players. Manufacturing equipment suppliers are set to gain the most with the increased investment in Gen 6 and above facilities and growing OLED market. Gen 8.5 facilities will continue to account for more than 50% of total display area production for next five years while panel area production from Gen 10 and above will grow the fastest in same period. Material suppliers are facing challenges as they need to keep investing in innovations in new and advanced materials for LCD and OLED technologies. Various players are emerging in the market and collaborating with tier 1 material suppliers, e.g., UDC & PPG Industries. Advanced materials will be the new game changer for these players. Worldwide demand for display components and materials is anticipated to reach $35 billion by 2023, growing at a CAGR of 3.1% between 2017 and 2023, according to a report recently released by MarketsandMarkets. OLED material suppliers will benefit from the increased demand from Samsung and other players in the short term; however, emerging manufacturing technologies, such as ink-jet printing, will reduce the material demand due to optimum utilization of materials. Industry has reached at a point where the demand for displays with power efficiency, high brightness, and fast response time is increasing rapidly. LCD and OLED panel markers are doing the best in their capability; however, emerging technologies such as Micro-LED and true-quantum dot will define the future of LCD and OLED ecosystems. These technologies will affect the entire display value chain, including the material, equipment, and panel suppliers. Worldwide demand for Micro- LED-based display and lighting panels is expected to reach $20 billion by 2025, with a growth of 54.7% between 2019 and 2025. MICRO-LED DISPLAY PANEL MARKET 100% Smart Watches Near-to-Eye (NTE) 90% Smartphone & Tablet Laptop 80% TV PC Monitor 70% Heads-up-Display (HUD) Digital Signage Display Market Share (%) 60% 50% 40% 30% 20% 10% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: MarketsandMarkets Analysis on Micro-LED Market Many players are offering LED signage displays (less than 1mm pixel-pitch) as of 2017-18 and are targeting themselves towards 100 micron pixel-pitch for such applications. Based on the current LED manufacturing capabilities, mass transfer capabilities, and technology advancements; it can be expected that Micro-LED, a type of direct-view LED technology, may witness commercialization in smartwatches and NTE devices by 2019 and for other applications after 2021.

5. BROWSE RELATED REPORTS: REPORTS LINK Micro-LED Market By Offering (Display Panel and Lighting Device), Application (Smartwatch, NTE Device, Smartphone & Tablet, Laptop & PC Monitor, TV, HUD, Digital Signage Display, Lighting), Vertical, and Geography - Global Forecast to 2025. https://www.marketsandmar- kets.com/Market-Reports/mi- cro- led-market-119830236.html Display Material Market By Technology (LCD, OLED), Component & Material (Substrate, Polarizer, Color Filter, Liquid Crystals, BLU, Emitter & Organic Layer, Encapsulation), Panel Type, Application (Smartphone, Television), Region Global Forecast to 2023. https://www.marketsandmar- kets.com/Market-Reports/dis- play-material-market-1970764. html OLED Market By Display Application (Smartphone, TV, Automotive, NTE), Panel Type (Rigid, Flexible), Technology, Size, Material (FMM RGB, WOLED), Lighting Application (General, Automotive), Panel Type, & Vertical, and Geography Global Forecast to 2023. https://www.marketsandmar- kets.com/Market-Reports/ oled- market-200.html http://www.marketsandmarkets. com/Market-Reports/large-for- mat-display-market-9304851. html Large Format Display (LFD) Market By Offering, Display Type (Video Wall & Standalone), Technology (LED-Backlit LCD, Direct-View LED, OLED, E-Paper), Size, Brightness Level, Application (Indoor & Outdoor), Vertical, and Region - Global Forecast to 2023. Display Market By Technology (LED-backlit LCD, OLED, QD-LED, E-Paper), Display Type (Flat, Flexible, Transparent), Application (Smartphone & Tablet, TV & Digital Signage, PC Monitor & Laptop), Vertical, and Geography Global Forecast to 2022. https://www.marketsandmar- kets.com/Market-Reports/dis- play-market-925.html

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