As India charts its course in the display technology landscape, it becomes imperative to develop domestic capabilities in LCD technology which is the foundation for displays. In due time, India can further build on the foundation independently and organically transition to OLED technology, a growing yet relatively premium segment for the Indian consumer base. The Interim Budget, to be presented on February 1, can further bolster investments in the segment by providing more incentives in the form of subsidies and easy clearance procedures.
While cutting-edge innovations in display technology are dazzling the screens for discerning consumers, the workhorse of electronics displays continues to be the Liquid Crystal Displays (LCD), a technology with diverse applications and enduring relevance, especially in the Indian market. Despite the emergence of newer technologies such as Organic Light Emitting Diode (OLEDs) and MicroLEDs, LCDs continue to maintain a stronghold as the preferred choice due to their reliability, cost-effectiveness, and versatility.
The global Thin-Film-Transistor Liquid Crystal Display (TFT-LCD) display panel market, valued at approximately USD 155.57 billion in 2023, is poised for robust growth, fuelled by an insatiable global demand for displays in laptops, tablets, mobile phones, TVs, automotive displays, medical devices, and more. Projections indicate a Compound Annual Growth Rate (CAGR) of 4.9% in the forecast period of 2024-2032, with the market reaching a value of around USD 239.27 billion by 2032. This underscores the enduring significance and potential expansion of LCD technology in the coming years. The landscape of the LCD TV panel market is undergoing significant changes, primarily driven by the strategic moves of Chinese brands and the shift in focus of Korean companies like LG and Samsung towards OLED technologies. According to recent insights from market research firm Omdia, Chinese electronics companies have shown impressive performance in the first quarter of 2023. This surge is not just a result of increased production but also due to their strategic management of technology and market dynamics.
Chinese brands are increasingly adopting a strategy of dropping utilization rates. By not flooding the market with excess supply, these companies maintain a balance between supply and demand, thereby controlling average selling price (ASP).
China is not just expanding its production capacity but is also making significant technological advancements. This dual strategy of strategic production management and technological enhancement is allowing China to increasingly dominate the global LCD TV panel market. The overall market dynamics are thus shifting, with Chinese companies not only compensating for the reduced focus of LG and Samsung on LCD technology but also setting new standards in both technology and market strategy.
LCD’s Unwavering Relevance in India’s Consumer LandscapeIndia, a significant consumer in the global display market, is making strategic moves to establish itself in the display manufacturing sector. The Indian government, recognizing the substantial role that display components play in the total bill of materials for electronic products (over 25% in smartphones and over 60% in LCD/LED TVs), has launched initiatives to set up display fabrication units within the country. This effort is part of a broader strategy to reduce dependence on imports and to develop a robust Electronics System Design and Manufacturing (ESDM) ecosystem.
The Indian market for flat panel displays, fuelled by a surge in demand for consumer electronics like smartphones, is projected to grow from $5.4 billion in 2020 to nearly $19 billion by 2025. Despite being a leading consumer market for display-centric products, India currently does not have a local display manufacturing industry, relying entirely on imports. Domestic fabrication of these display panels would significantly reduce manufacturing costs and lighten import demand, making the Indian market more competitive.
The Indian display market is anticipated to grow from approximately USD 7 billion in 2020 to USD 15 billion in 2025 and is expected to triple in size by 2030. To capitalize on this opportunity, one of the front runners is Vedanta group, which is gunning to set up the country’s first integrated glass and display fab. Banking on the LCD glass substrate manufacturing expertise of its group company AvanStrate Inc. (ASI), which has 700+ patents and operations in APAC.
LCD Advantage: Affordability and Ubiquity
Owing to it adaptability and cost-effectiveness, LCDs will continue to be the go-to display technology for the masses in India. Amid the ever-evolving market, LCD Flat Panel TVs are set to maintain their reign in the country, given the prohibitively premium pricing of OLED TVs. The cost comparison is stark, with OLED panels priced nearly five times higher than their LCD counterparts, making LCDs the go-to choice for budget-conscious consumers.
The advantages and applications of LCD technology are not confined to consumer electronics and are rather valued across various critical segments. Large public displays, medical equipment displays, and automotive displays all find their technological backbone in LCDs. The inherent advantages of higher durability and lower power consumption position LCDs as the pragmatic choice, especially when compared to OLED displays. By this consideration, they are also the display of choice for the burgeoning electronic vehicles segment.
LCD’s Long-Term Promise for India
Even on the global stage, OLED panel manufacturers are facing challenges. LG, a prominent player in this technology, has been operating its OLED factory below full capacity due to a limited customer base and a slowdown in demand. The pandemic-induced surge in demand for new TVs has tapered off amidst economic challenges. This underscores the enduring viability and demand for LCD technology, both in India and globally.
As India navigates the complex landscape of display technology, the unwavering dominance of LCDs emerges as a linchpin in the nation’s journey towards self-reliance and technological prowess. The cost-effectiveness, versatility, and continued global relevance of LCD technology position it as the cornerstone of India’s display revolution, setting the stage for a future where the nation not only meets its domestic demand but also emerges as a significant player in the global display manufacturing arena.
India’s display policy can be a potential gamechanger for India’s arrival on global stage with its strong and cost competitive electronics eco-system and also strengthen its geopolitical standing. But all that for urgent policy implementation and an intelligent focus and impetus through the upcoming budget.
By Rajesh Mehta
https://www.financialexpress.com/business/industry-indias-display-revolution-will-bank-on-lcd-technology-for-years-to-come-3373958/lite/
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