Omdia Expects Global Display Driver Chip Demand to Recover and Grow 6% by 2024

Omdia Expects Global Display Driver Chip Demand to Recover and Grow 6% by 2024

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# Total demand for display driver ICs (DDICs) is expected to be 7.98 billion units in 2023, unchanged from 2022. Demand for LCD display driver ICs in 2023 will be better than expected, while the increase in AMOLED display driver ICs will be lower than expected.

# Omdia expects global DDIC demand to recover and grow 6% year-on-year in 2024, with LCD display driver chips expected to grow 5% and AMOLED display driver chips expected to grow 17%.

In 2023, the total demand for DDIC (Display Driver IC) is expected to remain steady at 7.98 billion units, according to the latest database from Omdia's "Display Driver Chip Market Tracking Report - 1Q23." The demand for LCD (Liquid Crystal Display) driver chips in 2023 is projected to reach 6.94 billion units, showing a marginal decline of 0.2% compared to the previous year, which is better than initially anticipated. On the other hand, the demand for AMOLED (Active Matrix Organic Light Emitting Diode) driver chips is estimated to be 1.04 billion units, with a 3% year-on-year growth, albeit lower than expected.

Regarding LCD driver chips, the first quarter of 2023 witnessed higher-than-expected shipments of LCD smartphone display driver chips due to OEMs, distributors, and agents replenishing their stock for a-Si TFT LCD smartphone panels. This trend continued into the second quarter, leading Omdia to project a 0.4% year-on-year growth in demand for LCD smartphone display driver chips in 2023. Additionally, sectors such as LCD televisions, industrial control, smartwatches, and automotive applications are expected to drive the growth of TFT LCD display driver chip demand in 2023. Conversely, demand for display driver chips in IT applications such as desktop monitors, laptops, and tablets is predicted to continue declining in 2023 due to sluggish demand in the end-user market. Therefore, Omdia forecasts a 0.2% year-on-year decrease in the total demand for LCD display driver chips in 2023, slightly higher than the previously forecasted 1% decline.

In the realm of AMOLED display driver chips, the demand for AMOLED smartphone display driver chips in 2023 is expected to be lower than previously anticipated due to weak demand for rigid AMOLED smartphones. The annual growth rate for AMOLED smartphone display driver chips in 2023 is forecasted to be only 4%, a 6% drop from the previous forecast. Coupled with the decrease in demand for AMOLED smartwatch displays, Omdia predicts that the total demand for AMOLED DDIC will only grow by 3% year-on-year in 2023.

Omdia anticipates that the global DDIC demand will rebound and grow by 6% year-on-year in 2024.

Omdia also projects a 4% year-on-year increase in unit shipments of display panels in 2024. With the arrival of new replacement cycles and price elasticity, unit shipments for panels in most major applications, including smartphones, mobile PCs, LCD televisions, OLED televisions, and desktop monitors, are expected to recover and grow in 2024. Therefore, it is anticipated that DDIC demand in 2024 will increase by 6% year-on-year, reaching 8.48 billion units.

In 2024, the demand for LCD display driver chips in desktop monitors and laptops is expected to recover, combined with continued growth in demand for LCD television and LCD smartphone display driver chips. This leads to a projected 5% year-on-year increase in demand for LCD display driver chips in 2024.

Omdia forecasts a resurgence in demand for AMOLED smartwatch display driver chips in 2024, along with increased demand in the IT application sector next year. Additionally, with ongoing growth in demand for AMOLED smartphone display driver chips, it is expected that demand for AMOLED display driver chips will experience a double-digit growth of 17% in 2024.

Omdia expects that as higher resolutions become more prevalent in many large-sized applications, the demand for DDIC will maintain slow and steady growth in the long term.

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