OLED Demand Surge Leads to Upward Revision in Display Equipment Capex Forecast

According to Counterpoint’s latest Quarterly Display Equipment Capital Spending and Market Share Report, global display equipment spending from 2020 to 2027 has been revised up by 2%, reaching $77 billion. The adjustment is driven by increased OLED investments and a slight rebound in the LCD market.

OLED equipment spending is expected to grow annually from 2023 to 2027. This growth is fueled by the expansion of G8.7 OLED production lines, the shift to flexible and LTPO technologies, and the rising demand for OLED TVs larger than 85 inches. Additionally, the increasing OLED penetration in smartphones, tablets, and laptops—alongside growing panel sizes—is boosting overall market demand.

Due to weaker-than-expected IT OLED demand, G8.7 OLED lines may initially focus on smartphone panel production. Despite OLED's higher capital intensity compared to LCD, OLED is projected to account for 58% of total display equipment spending between 2020 and 2027, while LCD will still represent 40%, with large-size LCD TV line conversions (85 inches and above) planned for 2024–2027.

Counterpoint notes that China is expected to account for 83% of global display equipment spending during 2020–2027—slightly down from 84% as of Q4 2024. China's cumulative spending had already reached $64 billion by the end of 2024, keeping it at the forefront of global investment. South Korea is projected to maintain a 13% share, with $10 billion in cumulative spending. India and Taiwan are estimated to account for 2% and 1%, respectively.