Omdia recalls that shipments of large TVs and monitors decreased by 8.2% in volume and 3.1% in terms of area in 2022. The global economic recession and the Russian-Ukrainian war in Europe have led to a drop, or even a freeze, in purchases of these large screens from the first months of 2022. As a consequence, stocks will swell among manufacturers but also within TV and monitor brands.
The word to Peter Sun analyst at Omdia
“To reduce their stock, buyers of screens (Editor’s note: brands and resellers) considerably reduced their orders from mid-2022, which led to a sharp erosion of prices in 2022. Despite these prices historically low demand remained weak, as a result screen manufacturers reduced production from the second half of 2022. Screen shipments in 2022 therefore fell, especially for laptop screens that had relatively high inventories,†said Omdia senior analyst Peter Su.
However, shipments of large screens are expected to pick up again in 2023 in volume. Peter Su explains that “stock issues have eased recently. Even if the situation of computer screens requires more time to return to normal, that of television screens should be normalized at the end of the first half of 2023, in particular at the level of Chinese brands of OEM equipment manufacturers (Original Equipment Manufacturer or manufacturing of turnkey hardware for other consumer electronics brands) that supply TV brands in the US and Europe.
2023, year of recovery for large screens
According to Omdia forecasts, the migration to larger TV sizes operated by consumers a few years ago will resume in 2023. Omdia recalls that shipments of TV screens 65'' (165 cm) and larger have declined by 5% in 2022 due to the global recession on the one hand, the low use of Gen 10.5 factories (Editor's note: capable of producing the largest mother slabs then cut to manufacture TV panels) linked to prices historically low TV panels on the other hand. However, shipments of 65'' and larger TV panels are expected to grow by 17% in 2023.
Omdia expects supply and demand for large screens to improve from the second half of 2023. However, screen manufacturers will maintain their adopted "make-to-order" policy in the second half of 2022 to prevent further price erosion and inventory buildup.