Industry news

Revenues from active matrix (AM) small- to medium-size displays (9-inch or smaller), including TFT LCD, OLED, and electrophoretic displays (EPD), are expected to reach US$43.4 billion in 2016, according to IHS. Although revenue growth has been flat since 2015, small- to medium-size AMOLED display revenues are expected to reach US$14.3 billion in 2016, closing in on LTPS displays (US$14.7 billion) and surpassing a-Si ones (US$14 billion).

Bolstered by the rise in flexible displays used in smartphones, tablet PCs and connected wearable devices, AMOLED is set to be the leading next-generation display technology. At the same time, a-Si TFT LCD will eventually become a legacy display technology, with decreasing demand - especially for smartphone displays, IHS said.

In 2016 AMOLED displays have been enjoying strong demand from the smartphone market - especially the Galaxy S series from Samsung, IHS said. In the China market, Oppo and Vivo have also aggressively added AMOLED displays to their high-end models in 2016. Plus, to differentiate its mid-range smartphones, Samsung also used AMOLED displays in its Galaxy J series. At the same time, the lackluster sales of iPhone 6S had a negative impact on LCD display revenues, especially the LTPS segment. Although the iPhone 7 was expected this year, display makers were conservative in their estimates of total display demand for the iPhones in 2016.

Increasing AMOLED demand also negatively affected TFT-LCD display revenues, IHS said. It will be important to watch what happens in the smartphone display market this year, especially the following: Although it may be a limited model, the well-publicized issues with Samsung's Galaxy Note 7 batteries could stymie some AMOLED panel sales. On the other hand, iPhone 7 orders have been much stronger than expected in US market, which could have the reverse effect on AMOLED sales. IHS's latest forecast shows strong growth for small- to medium-size AMOLED displays in 2016, but the research firm said the trend may be revised in the fourth quarter, depending on how the market shakes out.