LG Electronics has increased its sales target for 60-inch or larger OLED TVs to double the volume it sold last year following the inauguration of new CEO Kwon Bong-seok.
Market research firm IHS Markit forecast that global OLED TV sales amounted to 3 million units in 2019, with 60-inch or larger TVs accounting for 1,114,000 units. Sales of large OLED TV are expected to grwo to 1,977000 units this year, 3,789,000 units in 2021 and 6,070,000 units in 2022.
The global OLED TV market will grow further when LG Display, which exclusively supplies OLED TV panels, begins to operate its new plant in Guangzhou, China this year. The plant can produce about 60,000 units of 8.5th-generation mother glass a month. LG Display plans to expand the plant to additionally produce 30,000 units of mother glass a month.
One unit of 8.5th-generation mother glass can produce three 65-inch panels. The introduction of multi-model glass (MMG) technology enables additional production of small and medium-sized panels, thereby reducing production costs. In addition, if LG Display operates its 10.5-th generation OLED plant in Paju, Korea in 2023, it can produce eight 65-inch OLED panels from one unit of mother glass, which will significantly cut production costs.
LG Electronics took up 56 percent of the global OLED TV market as of the third quarter of last year in cumulative terms. It is expected to benefit from this drop in OLED panel prices. The decline in LCD panel prices slowed down in January due to supply adjustments by producers. This will narrow the price gap between OLED panels and LCD panels.
LG Electronics has to solidify its position as the leader in the large OLED TV market this year. Samsung Display will start mass-production of large displays using quantum dot technology in the first half of next year, while the number of companies that will release OELD TVs this year has increased to 18. For example, Sharp is set to release its OLED TVs this year.
However, there is concern that if the new coronavirus outbreak continues for a long time, it may interfere with LG Display's operation of its Guangzhou OLED plant in China.