Basic overview analysis of the LCD module industry
LCD module, refers to the LCD panel and the related drive circuit, backlight, Integrated circuits and other components assembled together to form a modular component, its structure varies with the downstream product application object.
In recent years, with the development of touch technology, touch screen in the LCD, especially small and medium-sized LCD applications are becoming more and more common, touch integrated LCD module also includes the structure of the touch screen.
LCD module industry chain analysis: the material side of the strong profitability, the rise of domestic prying the industrial landscape
From the industry chain, LCD module industry chain can be divided into upstream basic materials, midstream panel manufacturing and downstream end products. Among them, the upstream basic materials include: glass substrates, color filters, polarizers, liquid crystal materials, driver IC, backlight module, conductive silver, photoresist, etc.; midstream panel manufacturing include: array (Array), into the box (Cell), module (Module); downstream end products include: LCD TVs, computers, smart phones, digital cameras, automotive display, and medical instruments.
Analysis of gross profit margins from the LCD module industry chain, constituting the famous theory of "smile curve": the industry chain presents a U-shaped gross profit margin, the left high gross profit rate is the upstream basic materials (more than 40% gross profit rate), the middle of the low gross profit rate is the middle of the panel manufacturing (10-20% gross profit rate), the right higher gross profit rate is the downstream terminal products. high gross margin is the downstream end product (20-30% gross margin).
"Smile curve" is mainly due to technical barriers and competitive landscape. The upstream of the industrial chain basic materials technology threshold is extremely high, mostly monopolized by Japan, South Korea, the United States and a few other companies, creating the upstream of the industrial chain of the status quo of high gross margins. And half of the midstream panel manufacturing is controlled by South Korea. Since mainland China joined the war for market share, the competitive pattern in the midstream has become more intense. The downstream application field is wider, the competition pattern is more decentralized, the gross profit margin is in the midstream level.
The domestically produced industrial platform has opened up living space for upstream raw material companies, giving mainland China's independent material research and development system a chance to enter the upward cycle. Although the upstream materials are still dominated by European, American, Japanese and South Korean enterprises, the quality of China's mainland products and foreign materials are still in a certain gap, the market share is relatively small, and is concentrated in the low-end areas, but in the case of the whole industrial chain vigorously invested in the support of the national policy, and the domestic enterprises to adhere to the R & D and innovation, the market pattern is quietly changing.
In 2018, the global LCD module industry market size will exceed 740 billion
Benefiting from the development of the global electronic information industry, 2011-2014, the global LCD module industry market size shows a continuous growth trend. According to Foresight Industry Research Institute released China LCD Module Industry Development Prospect Forecast and Investment Strategy Planning Analysis Report statistics show that in 2014, the global LCD module industry market size exceeded 750 billion U.S. dollars. Affected by the shrinkage of production capacity and display technology upgrading, 2015-2016, the global LCD module market size has declined, in 2016 the global LCD module industry market size of about 617 billion U.S. dollars.In 2017, the global LCD module industry market size of 712.5 billion U.S. dollars. With the growth in the production of products such as downstream end products of LCD modules, the demand for LCD modules has also expanded, and it is expected that in 2018, the market size of the global LCD module industry will reach about $745 billion.
Global LCD module industry market size statistics and growth forecast 2011-2018
Data source: Prospective Industry Research Institute
China LCD module industry production statistics
LCD module as the core component of many electronic products, more and more Japan, South Korea, Taiwan, the region's electronic More and more Japanese, South Korean, Taiwan electronics manufacturers will transfer their LCD module production line to mainland China, making China's LCD module production capacity to geometric progression in the rise every year. 2009 since the world's more than 80% of the LCD module production capacity provided by mainland China, and which South China plays an important role. From the domestic LCD module industry production situation, the overall 2011-2014 is in a continuous rise in the interval, in 2014, the domestic LCD module industry shipments reached 8.446 billion sets. 2016, the industry capacity has been adjusted, LCD module production declined to 5.525 billion sets. 2017, the production of LCD module rose slightly to reach 5.565 billion sets.
With the growth in the production of smartphones, tablet PCs and other products, the demand for LCD modules has also expanded, and it is expected that in 2018, China's LCD module industry output will reach about 6.75 billion sets.
2011-2018 global LCD module industry production statistics and growth forecast
Data source: Prospect Industry Research Institute
Chinese LCD module industry market competition pattern analysis: BOE revenue and production ranked first in the country, the industry head effect is obvious
There are many domestic LCD module enterprises, and compared with the LCD panel, the LCD module industry has become more competitive. Compared with the LCD panel, the LCD module technical barriers are lower, and the amount of investment is less. A large part of the domestic cell phone LCD module enterprises are distributed in southern China represented by Shenzhen.Since 2017, the full-screen is the biggest bright spot of the smartphone, many LCD module LCM enterprises are actively putting into production, and have even developed mass production of 18:9 full-screen.
From the point of view of shipments, in June 2018, the LCD module TOP 20 companies shipped more than 138KK, the top three in order of BOE, Tianma, and CEC. Among them, BOE occupied the top of the list with 26KK shipments.
2018 H1 China LCD module enterprises shipments TOP20 statistics
Data source: Prospective Industry Research Institute
From the production capacity situation, at present, China's mainland region **** there are 39 LCD production lines, and since 2017, the mainland completed or under construction of the LCD production line is basically for the 8.5-generation line and above, including BOE's GEN 10.5 line expected to go into production in 2020 and Huaxing Optoelectronics' GEN 11 line expected to go into production in 2019. In the past few years, China's mainland capacity expansion has been rapid, strong momentum of industrial development, taking into account the gradual climb of landed capacity and the future incremental new capacity, it is expected that in the next three years China's mainland LCD capacity area growth is expected to be more than 10%. Panel capacity growth is expected to further drive the demand for materials, the expansion of domestic panel manufacturers is conducive to the localization of materials.
From the point of view of the revenue of listed companies, as of the first three quarters of 2018, BOE with 69.464 billion yuan to continue to occupy the first position, Ou Fei Technology, Deep Tianma, Dongshan Precision and HELITA strong growth momentum. The industry's head effect is highlighted, with the top six companies accounting for 86% of the operating income.
The development trend: LCD panel large size into a trend, driving the industry high generation line investment
In 2017, the global average size of LCD TV panel is 44.3 inches, is expected to 2020, the global average size of LCD TV panel will rise to 48.5 inches. And a larger panel size means more material usage. At present, samsung's all LCD panel generation line capacity, 8 generation line accounted for 65%, while other regions of different generation line capacity, 10 generation and above generation line capacity accounted for 5%, 8 generation line capacity accounted for 46%. In the future, it is expected that the global LCD panel manufacturers will increase the investment in the construction of high-generation lines.
2017-2020 global LCD TV panel average size statistics and forecast
Data source: Prospective Industry Research Institute
2010-2020 global large-size panel capacity statistics
Data source: Prospective Industry Research Institute
Currently, the global LCD industry is moving towards the 8.X generation line X and 10 + generation line, the development of high generation line is also an opportunity for mainland factories to catch up with Korean and Taiwanese enterprises. In terms of cutting efficiency, 8.5 generation line cutting 65-inch TV can be used 66-inch + 32-inch TV set cutting, to achieve 94% cutting efficiency; 10.5 generation line cutting 55-inch, 65-inch and 75-inch TV can reach more than 90% cutting efficiency. With the popularity of high-definition large-size TV, 55-inch, 65-inch and 75-inch TV will gradually become the mainstream finished product, and 8.X generation line and 10 + generation line with large-size economic cutting efficiency, so the high generation line in the future competition is more advantageous. In addition, South Korea's Samsung and LGD will focus on gradually shifting from LCD to OLED, so from the 8.X generation line that has been completed in 2017 and the future planning to invest in the construction of 10 + generation line and other high-generation line, the mainland has occupied a leading position.
In terms of technology development trends, liquid crystal display technology has become the mainstream in the market in the last decade, completely replacing the traditional CRT tube technology. In the future, OLED and QLED may become the new direction of technology development in the LCD industry.