Market Analysis of LCD Industry in 2020: the demand for LCD panels is growing

It is understood that liquid crystal material is the core component of liquid crystal panel, compared with driving IC, polarizer, filter and other components, as a chemical synthesis material, its finished product property and efficiency has a certain variable. Because of its advantages of production capacity, cost, relatively mature technology and high stability, TFT-LCD panel is still expected to occupy the main share of the display panel market for a long time, especially the large-size panel market such as TV panel. After years of development, TFT-LCD panel has become the mainstream of the market. Large-size applications of LCD panels are mainly concentrated in LCD TVs, LCD monitors and mobile computers, while small-size applications are mainly concentrated in mobile phones, tablets and so on. 

(1) the large-size trend of LCD TV is the main driving force for the development of LCD panel industry. 

LCD TV is the first application area of TFT-LCD panel, accounting for more than 60% of the panel demand in the entire LCD panel market. The shipments of LCD TV determine the demand trend of LCD panel. From 2009 to 2019, the average display size of LCD televisions grew by about 1 inch a year, and the average size of LCD TVs shipped in 2019 reached 43.5 inches. The growth of the above display size comes not only from the continuous innovation of display material technology, but also from the cost reduction brought about by the continuous improvement of flat panel liquid crystal display production efficiency. 

The continuous growth of LCD TV screen size has led to the growth of the shipping area of TFT-LCD display panels. The shipping area of TFT-LCD display panels increased from 166 million square meters in 2014 to 223 million square meters in 2019, with an average annual compound growth rate of about 6.07 percent. 

(2) the application of 5G technology will provide new power for the development of LCD panel industry. 

In the future, 5G is expected to be one of the main drivers of demand for TFT-LCD panels. In March 2019, the Ministry of Industry and Information Technology issued the Action Plan for the Development of UHD Video Industry (2019-2022), proposing to "explore the application of 5G in UHD video transmission to achieve the coordinated development of UHD video business and 5G". With the gradual maturity and application of 5G technology, the large-size trend of TFT-LCD panels can better meet the requirements of high-definition applications, thus driving the growing demand of TFT-LCD panels. From 2019 to 2023, the shipping area of TFT-LCD panels is expected to increase from 223 million square meters to 249 million square meters, an increase of 12.20%. 

(3) the growth of the liquid crystal panel industry will lead to the growth of the upstream liquid crystal material market. 

Liquid crystal material determines the display effect of the screen and is one of the core upstream materials of liquid crystal panels. The continuous growth of the shipping area of TFT-LCD panels will certainly lead to the growth of the market demand of upstream TFT mixed liquid crystal materials. While the company's monomer liquid crystal products are located in the upstream of TFT mixed liquid crystals, several kinds of monomer liquid crystals go through the physical mixing process to produce mixed liquid crystals. Therefore, the market trend of monomer liquid crystal is basically consistent with that of mixed crystal. According to the measurement of about 3.5g liquid crystal material per square meter panel, the global TFT mixed liquid crystal market in 2019 is about 779t. 

(4) Industry chain. 

The global display material industry chain has formed a stable division of labor relationship. OLED front-end materials and single crystal manufacturers represented by issuers have established competitive advantages in chemical synthesis and purification, while downstream OLED terminal materials and mixed crystal production enterprises have established advantages in physical sublimation, mixing process and compound patents. The global division of labor and cooperation of this industrial chain is the industrial basis for promoting the continuous technological upgrading of display materials to launch new products and reducing the price of existing products to promote large-scale application of terminals. 

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