Driven by the OLED market, display equipment manufacturers continue their robust spending in capital equipment, according to the latest report by market research firm DSCC.
According to the firm, total display capital expenditures totaled $11.1 billion, up 32 percent from the previous quarter and up 18 percent year-over-year. Capital spending on display equipment totaled $11.1 billion, up 32 percent quarter to quarter and 18 percent year-over-year (see Figure). The firm notes that five Generation 6 OLED lines and a 10.5G line came onboard during the period.
DSCC adds that display equipment revenues for 21 publicly traded equipment suppliers also reached $3.8 billion, led by Canon and Applied Materials with market shares of 13.1 and 9.6 percent, respectively.
The OLED sector continues to drive growth in the display market. According to DSCC, revenue from OLED display panel sales will increase 19 percent in 2019 to $31 billion. OLED panel unit sales in all applications will grow 22 percent to 610 million, and shipment area will grow 35 percent to exceed 9 million square meters.
DSCC projects strong long-term OLED growth too, as the technology continues making inroads into the flat-panel TV market. OLED panel revenue will more than double from 2017 to 2022, increasing at a 16 percent CAGR to $48.9 billion. Much of the growth will be the TV market, where OLED unit shipments will grow at a 50 percent CAGR to 13.1 million.
DSCC adds that smartphones is the other key area driving OLED growth, with unit shipments projected to grow from 404 million to 899 million units, a 17 percent CAGR. Unit growth will be driven by the increasing number of large displays (over 6 in.), which in 2018 will account for more than 80 percent of smartphone screens.