**Rising Costs and Tensions Hit Global Display Demand Outlook**
Global shipments of large-area OLED displays are anticipated to rise significantly, with projections indicating an 18.8% increase year-on-year, reaching 38.8 million units by 2026. This forecast comes from recent data released by Omdia, a market research firm that tracks trends in the display industry. The surge in OLED display demand is primarily attributed to their increasing use in monitors and notebook computers, where South Korean manufacturers maintain a stronghold.
In contrast to the positive outlook for OLED displays, the overall market for large-area displays, which includes LCD technology, is expected to face challenges. Total shipments across all large-area displays are projected to decline by 2.3%, totaling 916.9 million units in 2026. This downturn is largely attributed to a combination of rising component prices, geopolitical tensions—particularly involving the United States and Iran—and broader economic uncertainties that are affecting consumer demand.
Omdia's report highlights that the decline in large-area LCD shipments is expected to be particularly pronounced, with a forecasted drop of 3.0% year-on-year to 878.1 million units. The overall revenue from the large-area display market is also set to decrease by 1.7%, amounting to approximately $69.9 billion, reflecting the softer demand conditions across the industry.
Despite the challenges facing the broader display market, the report indicates that the increasing adoption of OLED technology will help mitigate some of the declines. Notably, shipments of OLED displays for notebooks are projected to skyrocket by 66.0%, while monitor OLED shipments are expected to increase by 34.0%. This growth is seen as a crucial factor in supporting the overall market during a time of uncertainty.
The report also notes a significant shift in consumer preferences regarding television sizes. Demand is moving towards larger screens, with shipments of displays smaller than 65 inches predicted to fall by 5.9%. Conversely, displays measuring 65 inches and above are expected to see an 8.4% increase in shipments. This trend toward larger televisions is anticipated to help sustain revenues in the display sector.
YS Chung, the practice leader in Omdia’s display research division, commented on the rising costs of components such as memory and CPUs, which are projected to continue increasing into 2026. He pointed out that these higher component costs have led to increased prices for PCs, which in turn has weakened consumer demand. Specifically, monitor display shipments are forecasted to decline by 1.8% year-on-year, while shipments of notebook PC displays and tablet PC displays are expected to decrease by 0.6% and 3.8%, respectively.
Television manufacturers are also grappling with the impact of rising component prices. Unlike IT device manufacturers, TV brands face challenges in passing these increased costs onto consumers through higher retail prices. Omdia's analysis suggests that once TV brands complete their accelerated purchasing of display panels, a decline in panel procurement is expected to occur starting in the third quarter of 2026. Consequently, TV display shipments are forecasted to decrease by 2.5% year-on-year.
Despite the overall weaker conditions in the display market, the outlook for large-area OLED shipments remains positive. Chung emphasized that Korean manufacturers are likely to drive this growth by reallocating production capacity at their Gen 8.5 OLED fabrication plants, shifting focus from television panels to monitor displays. Additionally, both Samsung Display and BOE are set to commence mass production at their Gen 8.6 IT OLED fabrication plants in mid-2026, concentrating on OLED displays tailored for notebook PCs.
As the display market navigates these complexities, the contrasting trends between OLED and LCD technologies highlight the evolving landscape of consumer electronics. While rising costs and geopolitical factors pose challenges, the robust demand for OLED displays suggests a potential pathway for growth amidst broader market fluctuations.