Global Mechanicals Intelligence

Q2 2025 | APRIL - JUNE

 

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MARKET DYNAMICS

TECHNOLOGICAL ADVANCEMENTS

OLED and Micro LED: OLED technology continues to dominate high-end consumer electronics due to its vibrant colors and flexibility.  Micro LED is emerging as a strong competitor, offering higher brightness and longevity with less risk of burn-in

E-Paper: Due to its low power consumption, e-paper is being adopted for digital signage and other low-energy applications

CONSUMER PREFERENCES

High-Resolution Displays: There is a growing demand for 4K and 8K displays, particularly in televisions, monitors, and smartphones, driven by consumers seeking enhanced visual experiences

Flexible and Foldable Displays: Flexible OLED displays are gaining popularity in smartphones and wearable devices, driving innovation and consumer interest

MARKET SEGMENTATION

Consumer Electronics: This segment dominates the market, with applications for smartphones, tablets, and televisions.  The demand for high-resolution and foldable displays is driving growth.

Automotive: The automotive sector is increasingly adopting advanced display technologies for in-car infotainment systems, digital dashboards, and heads-up displays

Healthcare and Industrial: Displays with embedded touch and haptic feedback are enhancing user interaction and accessibility in these sectors

REGIONAL INSIGHTS

Asia-Pacific: Holds the largest market share, driven by strong manufacturing capabilities and high adoption of consumer electronics.

North America: Experiencing steady growth due to rising demand for OLED and LED screens in smartphones, TVs, and digital signage.

SHIPMENT VOLUMES

Total Shipments: The global smartphone display shipments are projected to reach approximately 2.03 billion units in 2025

AMOLED Dominance: AMOLED panels are expected to lead the market, with shipments surpassing 1 billion units.  This growth is driven by their superior display quality and energy efficiency.

LCD Panels: While still significant, the demand for LTPS LCD panels is gradually weakening, particularly in mid- to low-end devices.

PROCESS OVERVIEW

LCD 

Specification and Design: Define requirements (resolution, size, brightness, viewing angle, interface).  Design the LCD cell structure, including liquid crystal material, colour filters, polarizers, and backlight.  Design the driver circuitry and PCB layout.

Prototyping and Testing: Build a prototype LCD module, then test optical performance (brightness, contrast, color accuracy, viewing angle), electrical characteristics, and environmental robustness. 

Design Refinement: Refine the design based on testing feedback.  This may involve adjustments to the LCD cell structure, driver circuitry, or backlight.  Further prototyping and testing validate the improvements. 

Manufacturing: Source components (LCD panel, driver ICs, backlight, PCB, housing), assemble the LCD module, including bonding the LCD panel, attaching driver ICs, and integrating the backlight.  Perform quality control checks throughout.

Final Testing and Certification: Conduct final testing, including burn-in and environmental testing.  Certify that the module complies with safety and regulatory standards. 

OLED 

Specification and Design: Define requirements (resolution, size, colour gamut, brightness, power consumption, and flexibility).  Design the OLED structure, including organic light-emitting materials, substrates, and encapsulation.  Design the driver circuitry and PCB layout. 

Prototyping and Testing: Build a prototype OLED module.  Test optical performance (brightness, contrast, colour accuracy, lifetime), electrical characteristics, and mechanical flexibility (if applicable).    

Design Refinement: Refine the design based on testing feedback.  This may involve adjustments to the OLED structure, driver circuitry, or encapsulation.  Further prototyping and testing validate the improvements. 

Manufacturing: Source components (OLED panel, driver ICs, PCB, housing) and assemble the OLED module, including bonding the OLED panel, attaching driver ICs, and integrating the encapsulation.  Perform quality control checks throughout. 

Final Testing and Certification: Conduct final testing, including burn-in and environmental testing.  Certify that the module complies with safety and regulatory standards. 

RECENT DEVELOPMENTS

Date	Display Manufacturer	End User (Company 2)	Development Type	Description	Deal Value
Feb-25	Planar Systems Inc. (US)	-	Product Launch	Planar, a global leader in visualization technology, announced an expansion of the popular Planar® DirectLight® family with the launch of the Planar® DirectLight® Slim Series. Featuring an ultra-thin, narrow width form factor, the new fine pixel pitch Micro LED video wall display accommodates curved and space-constrained applications that benefit from its unique form factor, including control rooms, broadcast studios, virtual production, extended reality, simulation and training, research, and more.	-
Jan-25	Samsung Display (South Korea)	-	Product Development (Innovation)	Samsung Display will begin mass production of the world’s first rollable OLED laptop screen starting in April 2025. Samsung Display announced its rollable screen for the Lenovo ThinkBook Plus G6 Rollable laptop. The ThinkBook Plus G6 Rollable laptop features a screen underneath the keypad, where the screen expands vertically by almost 50%, offering a unique mobile computing experience. When rolled in, the screen supports a 5:4 aspect ratio on a 14-inch display. When rolled out, the aspect ratio shifts to 8:9 on a 16.7-inch display, providing an enhanced view for efficient multitasking.	-
Jan-25	Samsung Display (South Korea)	-	Product Development & Launch	Samsung Display reveals a range of new IT and automotive OLED products expected to drive the OLED industry’s growth. Samsung showcased state-of-the-art OLED products for IT devices, including tablets, laptops and monitors, as well as cutting-edge OLED solutions for vehicles.	-
Dec-24	Japan Display Inc.	-	Product Development & Launch	JDI has developed the world’s first automotive-grade display that deploys JDI’s game-changing HMO (High Mobility Oxide) backplane technology in tandem with eLEAP, the world’s first lithographic maskless deposition OLED technology. JDI’s eLEAP enables production of large-size and free-form OLED displays, doubling the aperture ratio of conventional OLEDs to deliver extraordinarily bright and vivid displays and longer display lifetimes, a critical requirement for automotive applications.	-
Dec-24	Japan Display Inc.	Innolux Corporation (Taiwan), CarUX Technologies Pte. Ltd. (Singapore)	Partnership	JDI signed an eLEAP Strategic Alliance agreement with Taiwan-based Innolux Corporation, one of the world’s leading display manufacturers, and its Singapore-based subsidiary, CarUX Technology Pte. Ltd., a global leading Tier 1 automotive display solution supplier.
Dec-24	Samsung Display (South Korea)	Dolby Laboratories (US)	Partnership	Samsung Display announced a strategic partnership with Dolby Laboratories, a leader in immersive entertainment experiences. The partners will offer Samsung Display’s cutting-edge OLED displays pre-tuned to deliver Dolby Vision® to automotive manufacturers, providing best-in-class imaging experiences through a new streamlined evaluation and implementation process.	-
Nov-24	LG Display (South Korea)	-	Product Development (Innovation)	LG Display announced its unveiling of the world’s first Stretchable display capable of expanding up to 50%, the highest rate of elongation in the industry. At LG Science Park in Seoul on Nov. 8, the company demonstrated the panel at a meeting of more than 100 South Korean industry, academia, and research stakeholders involved in a national project for stretchable displays.	-
Nov-24	LG Display (South Korea)	-	Business Development	Vietnam has awarded a licence to South Korea's LG Display (034220.KS), opens new tab that will see it raise its investment in the northern port city of Haiphong by $1 billion, the city's authorities said late on Thursday. The investment will boost the company's OLED display output at its Haiphong factory and raise its total investment in Vietnam to $5.65 billion, according to a document from the Haiphong Economic Zone Authority.	$ 1 Bn
Nov-24	Planar Systems Inc. (US)	-	Product Development & Launch	Planar has released its Simplicity P Series LCD displays to support the continuous operation of digital signage applications. The large format display series has been certified for 24/7 usage for digital signage applications, including emergency messaging, wayfinding, advertising, and menu boards. Planar Simplicity P Series is available in sizes ranging from 43 inches up to 86 inches. It also has interactive touch models with 20 simultaneous touch points and a fine-tip stylus, which can also be purchased in all sizes.	-
Oct-24	Barco (Belgium)	-	Product Development & Launch	Barco launched the Coronis OneLook display solution. Coronis OneLook offers radiologists the highest resolution in the breast imaging display market and powerful tools to read efficiently and customize the display to their workflow.	-
Oct-24	LG Display (South Korea)	-	Product Development & Launch	LG Electronics (LG) launched its business monitor lineup, introducing 20 brand-new models designed to enhance productivity and ergonomic comfort in the workplace. Well, known for its premium consumer monitors, LG is now expanding into the B2B sector with monitors tailored to the needs of diverse professional environments, from corporate and government to education, healthcare, and the creative industries.	-
Aug-24	Samsung Display (South Korea)	-	Product Development & Launch	Samsung unveils the Odyssey, Smart, and ViewFinity series of enhanced OLED displays.	-
Aug-24	Japan Display Inc.	-	Product Development & Launch	JDI Develops World's First Automotive Grade Dual Touch 2 Vision Display (2VD) ~ Simultaneously Displays Different Content to Driver and Passenger with Dual Touch Capabilities, Enabling One Display to Function as Two Displays	-
Jun-24	Japan Display Inc.	-	Product Development & Launch	JDI Develops World’s Highest Resolution (>2500 ppi) Ultra High-Resolution VR Display on Glass Substrate	-
May-24	LG Display (South Korea)	-	Product Development & Launch	LG Display, the world’s leading innovator of display technologies, announced today the unveiling of many its next-generation OLED and cutting-edge display technologies	-
Apr-24	BOE Technology Group (China)	-	Business Development	Display leader BOE Technology began constructing the second plant of its Vietnam facility	-

Source: Press releases & company websites

DEMAND/SUPPLY OVERVIEW

 DEMAND COMMENTARY

The display market in 2025 is experiencing significant growth and transformation, driven by technological advancements and changing consumer preferences.

The global display market is projected to reach USD 121 billion in 2025, growing at a CAGR of 2.3% from 2025 to 2030, reaching USD 150 billion by 2033.

High-Resolution Displays: There is a growing demand for 4K and 8K displays, particularly in consumer electronics like televisions, monitors, and smartphones.  Consumers are seeking enhanced visual experiences with higher clarity and detail.

Flexible and Foldable Displays: Flexible OLED displays are gaining popularity, especially in smartphones and wearable devices.  The ability to fold and bend these displays drives innovation and consumer interest.

Micro LED Technology: Micro LED displays are emerging as a strong competitor to OLED, offering higher brightness, better energy efficiency, and a longer lifespan.  This technology is particularly appealing for large-format displays and digital signage.

SUPPLY ANALYSIS

General Trends

Recovery and Stability: Display Fab utilization rates are expected to stabilize and gradually increase in Q2 2025, following a recovery in Q1.  This is driven by steady demand for TV and IT products.

Seasonal Patterns: Utilization rates for OLED panels typically peak during product launch cycles and holiday sales, while LCD utilization shows more consistent demand.

Regional Insights

• South Korea: Continues to lead in OLED production, with high utilization rates due to strong demand for OLED displays in smartphones and TVs.
• China: Chinese manufacturers have seen improvements after a dip in utilization during the extended National Day holiday in October 2024.  Government programs and inventory build-ups have boosted demand.
• Japan: Maintained stable utilization rates even during the Q4 2024 slowdown, contributing to overall industry stability.

Outlook

• Increased Utilization: Fab utilization will continue rising throughout 2025, nearing the levels observed in late 2024.  This is supported by a steady demand for TVs and a milder seasonal slowdown in the smartphone market.
• Capacity Management: Manufacturers are likely to manage production carefully to avoid oversupply, given that industry capacity still exceeds demand.

PRICING SITUATION

GENERAL TRENDS

Decreasing Costs: Overall, the cost of display technologies is expected to decline due to advancements in manufacturing processes, economies of scale, and increased competition among manufacturers.

Component Shortages: Ongoing shortages of critical components, such as semiconductors, impact production costs and display prices.

TECHNOLOGY-SPECIFIC TRENDS

OLED Displays: Prices for OLED panels gradually decrease as production scales up and efficiencies improve.  However, they remain relatively high compared to other technologies due to the complexity of manufacturing and the premium quality.

Micro LED Displays: Micro LED displays are priced higher than OLED, but prices are expected to decrease as the technology matures and production volumes increase.

LCD Panels: Prices for LCD panels have stabilized, with slight fluctuations due to changes in raw material costs and supply chain dynamics.

REGIONAL INSIGHTS

Asia-Pacific: This region benefits from lower production costs due to strong manufacturing capabilities, which helps keep prices competitive.

North America and Europe: Higher labor costs and regulatory requirements influence prices in these regions, leading to slightly higher prices than in the Asia-Pacific.

Trade tensions between the US and China have led to tariffs and import-export restrictions, affecting display components’ availability and cost.

KEY TAKEAWAYS

TECHNOLOGIES

OLED (Organic Light Emitting Diode): Continues to gain traction in high-end consumer electronics, televisions, and wearables due to its vibrant colors, flexibility, and energy efficiency.

Micro LED: Emerging as a strong competitor to OLED, offering higher brightness, longevity, and less risk of burn-in, it is ideal for premium applications like large-format displays and digital signage.

E-Paper: Known for its low power consumption, it is being adopted for digital signage and other low-energy applications.

DEMAND

High-Resolution Displays: The increasing demand for 4K and 8K displays in consumer electronics is driven by the desire for enhanced visual experiences.

Flexible and Foldable Displays: The Growing popularity of smartphones and wearable devices drives innovation and consumer interest.

Automotive Displays: Experiencing rising adoption of advanced display technologies in the automotive sector for in-car infotainment and digital dashboards.

SUPPLY

Manufacturing Capacity: Asia-Pacific remains the hub for display manufacturing, with strong production capabilities in China, South Korea, and Japan.

Technological Advancements: Continuous innovation in OLED, Micro LED, and AMOLED technologies drives supply dynamics.

Supply Chain Disruptions: Regional tensions, raw material shortages, and logistical bottlenecks impact the supply chain.

COST

Decreasing Costs: Overall, the costs of display technologies are expected to decline due to advancements in manufacturing processes and economies of scale.

Component Shortages: Shortages of critical components impact production costs and, consequently, the prices of displays.

Regional Variations: Prices vary by region due to differences in manufacturing capabilities, labor costs, and local demand.