“Owing to the increase in average TV screen sizes demanded by consumers, TV panel makers will enjoy a high growth in display area demand despite sluggish growth in terms of quantity,” said Alex Kang, senior analyst of display research for IHS Markit. The average TV panel size exceeded 40 inches in 2016 for the first time ever, and it will increase further by 1.3 inches to reach 42.6 inches in 2017.

“As consumers show a preference for larger display models and as set makers promote products with higher profitability, the average size of TV panels should continue to increase.”

According to the IHS Markit, TV panels accounted for about 70 percent of the entire display demand in terms of area in 2016, while IT panels, which include those for desktop monitors, notebooks and tablet PCs, made up 18 percent.

In contrast, IT panel demand is expected to remain flat in 2017, while mobile phone display demand is expected to grow 10 percent to 14 million square meters during the same period.

“Although the increase in the average smartphone screen size is propelling area demand for mobile phone displays, its impact to the entire display market should be minimal as mobile phones make up only 7 percent of the entire display market,” Kang said.