Omdia predicts AMOLED panels to capture 43% of display market revenue by 2028

The display market is entering a new phase of evolution, as AMOLED panels steadily gain ground on traditional TFT LCDs. In this blog, Omdia analysts explore the rise of AMOLED technology, which is projected to account for 43% of total display market revenue by 2028. Read more about the key factors driving this shift, the challenges facing TFT LCDs, and what these trends mean for the future of the display industry.

The display market is evolving rapidly, driven by advancements in display technology and shifting consumer preferences. Notably, the changing market shares of AMOLED panels and TFT LCDs are attracting considerable industry attention. According to Omdia’s Display Long-Term Demand Forecast Tracker – 2Q24 Analysis, AMOLED panels are projected to account for 43% share of total display market revenue by 2028, while TFT LCDs, currently the dominant technology, are expected to decline to 55%. In 2022, the market shares for AMOLED panels and LCDs were 34% and 65%, respectively.  

Figure 1: Display revenue demand forecasts by technology

AMOLED panels are widely used in advanced electronic products, such as smartphones, TVs, and wearable devices, due to their numerous advantages including superior picture quality, thinner and lighter designs, and flexibility. OLED panels utilize self-luminous technology, eliminating the need for a backlight. This makes them energy-efficient and capable of displaying true blacks, a feature highly valued by consumers. These attributes are driving the adoption of AMOLED technology in premium product lines.

Conversely, while TFT LCD technology has long dominated the display market, its sales share is gradually decreasing due to technological limitations and increasing competition. the falling unit price of AMOLED panels, even in midrange and low-end markets, is further eroding TFT LCD’s position. However, TFT LCD technology are expected to maintain a significant market share due to their relatively low production costs and competitiveness in large displays.

In the LCD TV segment, which competes with OLED TV, makers are focusing on ultra-large TV sizes of 80 inches or more. This strategy is impacting OLED TVs’ market position prompting Omdia to revise its OLED TV market demand forecast downward in the Display Dynamics – November 2024: Downward revision in the global TV display demand forecast.

These changes in the display industry are  influencing both technological development and investment strategies significantly. Global leaders like Samsung Display and LG Display are consolidating their market dominance by investing heavily in R&D for AMOLED technology. Meanwhile, Chinese makers are rapidly expanding their OLED production capabilities having recently surpassed South Korean companies in investments in Gen 8.6 OLED fabs to produce OLED panels for IT applications. This competitive landscape should accelerate technological advancements and continue driving market growth.

Additionally, next generation display technologies, such as Micro LED, LEDoS, and OLEDoS, are emerging and beginning to enter the market. These innovations may compete with AMOLED and TFT LCD technologies, potentially capturing a portion of the market share. 

Micro LED offers excellent brightness and energy efficiency, making it ideal for large displays and high-resolution TVs. In contrast, LEDoS and OLEDoS excel in small and ultra-high-resolution displays, making them suitable for next-generation applications, such as smartwatches and augmented reality (AR) and virtual reality (VR) devices.

Omdia expects that Micro LED, LEDoS, and OLEDoS will account for approximately a 5% share of the total display market by 2031. These technologies will partially replace AMOLED and TFT LCD technologies in high-end applications.

The forecast that AMOLED will become the primary growth driver of the display market by 2028 heralds a significant change across the industry. The rapid growth of AMOLED technology is likely to be driven by increasing demand for premium products and ongoing technological innovations. Meanwhile, TFT LCDs will continue to cater to the midrange and low-end markets, supported by steady demand. 

As competition in the display industry intensifies, advancements in technology and improvements in production efficiency will be crucial for future market competition. Additionally, the introduction of next-generation technologies, such as Micro LED, LEDoS, and OLEDoS, should usher in a new phase driving further transformation across the industry.