• Brands to focus on large-sized and mid-to-high-end TVs due to the shortage and price rise of semiconductor components and rise in panel prices.
• QLED TVs expected to rise 22.4% to 11.02m while OLED shipments by 80% to 7.1m units.
• Samsung’s QLED TV shipments expected to undergo a 17% year-on-year increase to 9.1m units this year,
• LG and Sony are expected to seize 80% of OLED market share.

QLED and OLED TV shipments are expected to break records this year as brands focus on more profitable large-sized and mid-to high-end TVs due to the shortage and price rise of semiconductor components and rise in panel prices.

This shift is expected to propel the annual shipment of QLED TV for 2021 to 11.02 million units, a 22.4 per cent year-on-year increase while OLED shipments are expected to increase 80 per cent year-on-year to 7.1 million units.

Research firm TrendForce points out that TV demand generated by the stay-at-home economy is likely to slow down as increased vaccinations in Europe and the US bring about an imminent easing of border restrictions.

In addition, TV panel costs have remained sky-high and show no signs of downward movement. Hence, TV brands are moving towards larger product sizes and better specifications to maximise profits and minimise the financial losses incurred by selling mid-and small-sized TVs, which have relatively low margins.

Given the downscaling of these less profitable models, TV brands’ annual shipments will likely suffer a corresponding drop.

TrendForce, therefore, expects total TV shipment this year to reach 220 million units, a 1.4 per cent year-on-year increase.

Surge in Samsung’s Neo QLED

During the replacement period between old and new models, market leader Samsung Electronics has not only lowered the retail prices of its QLED products to attract consumers but also released its new Neo QLED lineup, which features Mini LED backlights and resolutions ranging from UHD to 8K.

Samsung’s QLED TV shipments are expected to undergo a 17 per cent year-on-year increase to 9.1 million units this year, the highest annual shipment in history.

Samsung’s lineup includes about 1.5 million Mini LED backlight TVs, mostly with 65-inch and 55-inch displays, and these sizes account for 33 per cent and 30 per cent of the company’s total Mini LED backlight TV shipment, respectively, while the ultra-large, 75-inch model will account for 17 per cent.

TCL, on the other hand, released a relatively affordable 75-inch Mini LED backlight TV in 2020, with a 65-inch model released this year. TCL’s annual shipment of Mini LED backlight TV for 2021 will likely reach 800,000 units.

Apart from the aforementioned two brands, Xiaomi and LG are also eager to enter the Mini LED backlight TV market.

TrendForce forecasts a total annual Mini LED backlight TV shipment of three million units for 2021.

LG to seize over 50% of OLED market

At the moment, OLED TVs have been attracting consumer attention in the high-end TV market primarily due to their excellent image quality through high colour saturation and contrast.

As LG Display installs additional OLED capacity via its Gen 8.5 production line in Guangzhou this year, there will likely be a corresponding increase in OLED TV supply as well as a diversification of OLED TV sizes.

Also, annual OLED TV shipment is expected to break records once again this year, as brands are willing to expand their OLED TV product lineups because strategic reductions in OLED panel costs have now significantly narrowed the gap between the cost of OLED panels and that of equivalent LCD panels, thereby giving OLED panels a cost advantage that allows TV brands to reap increased profitability.

With regards to TV brands, LG Electronics remains the industry leader in terms of OLED TV shipment this year with a market share of more than 50 per cent, while Sony takes second place with a 20 per cent market share.

Other Japanese brands (Panasonic, Sharp, etc.) and Chinese brands (Skyworth, Hisense, Xiaomi, etc.) are expected to experience shipment growths going forward.

LG and Sony are expected to seize 80 per cent of OLED market share.