In the first half of 2024, it is expected that LG Display, EDO, and Tianma will account for 53% of the shipments in the first half of 2024, and Chinese OLED manufacturers are expected to account for 64%.
According to the Omdia Small and Medium-sized Display Panel Market Tracking Report, LG Display is in a leading position in the smartwatch OLED market, mainly supplying Apple Watch. Since 2023, the market share of Chinese OLED manufacturers has been expanding. In the first half of 2024, it is expected that LG Display, EDO, and Tianma will account for 53% of the shipments in the first half of 2024, and Chinese OLED manufacturers are expected to account for 64%.
Smartwatches have gained more attention after the COVID-19 pandemic, its functions include voice, health check, exercise and activity tracking, GPS, communication, and personal data monitoring. The global shipment of smartwatch display panels has increased from 259 million pieces in 2022 to 351 million pieces in 2023. By 2024, Omdia predicts that the shipment of smartwatch display panels will reach 359 million pieces, of which TFT LCD accounts for 63% and OLED accounts for 37%.
Smartwatch OLEDs have occupied the high-end market with superior visibility, higher contrast, slim appearance, and lower power consumption. Chinese OLED manufacturers have always focused on the smartwatch OLED market, continuously expanding their customer base while improving their manufacturing capabilities.
LG Display and Japan Display provide high-end flexible OLED panels with LTPO backplates for Apple Watch, while Samsung Display provides OLED for Samsung Galaxy Watch. However, due to the design choices of smartwatch device brands such as Fitbit, Garmin, BBK, Honor, OPPO, Xiaomi, and Google, Chinese OLED manufacturers such as EDO, Tianma, Visionox, JD.com, and Sunic are expanding their OLED panel shipments. At the same time, the adoption rate of OLED panels in non-brand-based basic smartwatches is increasing.
"Thanks to abundant resources and successful customer design choices, Chinese TFT LCD manufacturers such as JD.com have taken a leading position in the smartwatch TFT LCD market. At the same time, Chinese OLED manufacturers are exerting their influence in the smartwatch OLED market. With the integration of AI functions, the power efficiency of smartwatches has improved significantly, and OLED is expected to play a crucial role in the smartwatch supply chain. This is particularly important because some leading smartwatch brands have postponed the adoption of micro-LED display panels due to their high cost and production challenges," commented David Hsieh, General Manager of Display Research at Omdia.
"In addition, we are seeing smartwatch OLED manufacturers continuously updating their technology roadmaps to further reduce power consumption, improve visibility, and durability. Chinese OLED manufacturers are becoming increasingly important in the development of these advanced specification roadmaps."