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According to the third quarter OLED market tracking report released by UBI Research on Monday, the current market share of South Korea and China's smartphone OLED shipments is 57.6% and 42.4%, respectively. Next year, South Korea's market share is expected to shrink to 53.0 percent and China's to 47.0 percent. China will lead this market by 2025, with South Korea at 45.2 percent and China at 54.8 percent.
The report predicts that the gap will widen by 2027, with South Korea accounting for 35.8% of the OLED market share and China accounting for 64.2% of the market share.
Still, South Korea is expected to maintain its revenue lead in smartphone OLED sales until 2027, mainly due to lower prices for products made in China. This year, the share of revenue in South Korea and China was 70.2 percent and 29.8 percent, respectively, and is expected to be 53.6 percent and 46.4 percent in 2027. Agencies predict that after 2028, China's income may surpass that of South Korea.
Some observers said that China is actually South Korea's only competitor in the OLED market, taking advantage of huge domestic demand and government support to increase production. At a time when the growth of the smartphone market is slowing down, China's aggressive introduction of low-priced products poses a real threat to Korean companies.
However, industry experts still believe that China has a long way to go to overtake South Korea in the short term, and the future of OLED competition may be in the hands of Apple.
Samsung Display, which dominates the mid-sized OLED market, plans to gain a foothold in the 8.6-generation OLED market, starting with supplying screens for Apple's iPad, while LG Display is leading the market for large OLED panels.
Experts stressed the need not only to widen the OLED market gap, but also to prioritize the commercialization of next-generation displays such as Micro LED. Samsung Electronics introduced a large Micro LED TV, while LG Display developed a stretchable display based on Micro LED technology.
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