The cluster development model leads the rapid development of China's new display industry

China's new display industry has initially formed an industrial distribution pattern in the Beijing-Tianjin-Hebei region, the Yangtze River Delta region, the southeast coastal region and the Chengdu-Chongqing-Hubei region. In the process of developing the new display industry, the four regions have formed a cluster development model of "leading enterprises, major projects, industrial chains, industrial agglomerations, and industrial bases", leading the rapid development of China's new display industry.

The capacity transfer of the global display panel industry chain has gone through three periods: before 2000, there was the development of the global TFT-LCD industry led by Japan, and at the same time, Korean companies vigorously developed the industry, and the world's largest shipments during this period were Samsung;

From 2000 to 2010, Japan transferred technology to Taiwan, China, and at the same time, enterprises represented by BOE in Chinese mainland began to rapidly develop the LCD panel industry through acquisitions;

Since 2010, many Japanese manufacturers have withdrawn from the LCD industry, and South Korea has also shifted its focus to OLED, so that China's LCD panel production capacity currently occupies the first place in the world. According to CCID consulting data, China's LCD production capacity accounted for 50% of the global production capacity in 2020, and the LCD production capacity will continue to gather in China in the future.

In 2019, with the steady increase in panel shipments in the domestic market and the further improvement of OLED panel penetration, the size of China's panel display market was 174.07 billion yuan.

In 2019, LCD products still occupy the main share of China's panel display market in 2019, with a market size of 135.02 billion yuan. Due to the continuous increase in the penetration rate of products in the field of smart phones, the market size of OLED products has grown rapidly at an average annual compound growth rate of nearly 30% in the past three years.

2.The growth rate of China's display panel production capacity continues to lead the world

In recent years, with the mass production of a number of G8.5/G8.6 and G10.5 generation lines, China's LCD production capacity has maintained a high growth, and the total LCD production capacity reached 1,134.81 billion square meters in 2019, ranking first in the world.

In the field of OLED, with the accelerated release of the production capacity of the G6 generation production line, China's OLED production capacity accounts for more than 10% of the world's total, and the production capacity is expected to exceed 10 million square meters in 2022, accounting for nearly 30% of the world's production capacity.

Source: Qianzhan Industry Research Institute