UBI Research Lowers Forecast of OLED Market for ≥ 55 inch TV by Approx. 20-30%

Hyunjoo Kang / jjoo@olednet.com

UBI Research reduced the expected OLED panel shipment for ≥ 55 inch TV in 2016-2020 by approximately 20-30% from the previous forecast. This is with the consideration that ≥ 65 inch TV market is growing.

Earlier this year, UBI Research forecasted that the global shipment of ≥ 55 inch OLED panel will be 1.2 million units in 2016 and grow to 8.1 million units in 2020. However, as the proportion of 65 inch panel mass production increases, the company reduced the forecast by 20-30% to approximately 0.8-0.9 million units in 2016, and around 6 million units in 2020. This is because 65 inch panel has low yield per mother glass.

This figure is based on the LG Display’s large size OLED panel mass production line, E3 and E4 factories in Paju. E3 factory is mainly operated for 55 inch panel production. E4 factory also has high 55 inch production proportion, but 65 inch panel is also mass produced at the same time.

55 inch TV is the main product for large size TV at present, but 65 inch TV market is also rapidly growing. Accordingly, LG Display is increasing the 65 inch panel proportion. UBI Research’s market investigation shows LG Display shipped approximately 28,000 units of 65 inch OLED panel in Q2 2016. This is approximately double the Q1 volume.

From 1 Gen8 mother glass sheet of E4 line, 6 units of 55 inch OLED panel can be produced but only 3 units of 65 inch panel. This means that as LG Display increases the 65 inch proportion, yield of the same period decreases.

Considering this, UBI Research forecasts that the shipment of ≥ 55 inch OLED panel will decrease by approximately 20-30%. Another market research company IHS also lowered global OLED TV market forecast by 32%, and estimated this year’s to be about 0.83 million units, and 5.8 million units in 2020.