Insights

Picture quality alone no longer explains where the display industry will grow next. A Business Focus report from the Samjong KPMG Economic Research Institute expects the global display market to expand from USD 126.5bn in 2026 to USD 137.0bn in 2030, a CAGR of only 2.0%. The report argues that innovation in the sector is now organised in three layers: picture quality, form factor and AI interface.

Korea's position is narrowing. Korea's share of the global display market fell from 33.3% in 2021 to 28.9% in 1Q26, while China now holds 55.9%. LCD has consolidated around Chinese producers, with BOE at 32.5% and China Star at 20.9%. Even in OLED, where Korean makers retain their lead, the combined share of Samsung Display (45.8%) and LG Display (23.5%) is about 69%, down from roughly 83% in 2021. Picture-quality innovation continues, through Mini LED and Micro RGB LED backlighting for LCD and QD-OLED and tandem OLED structures for OLED. However, as these capabilities converge across the industry, the gains are becoming harder for consumers to notice and differentiating on image quality alone is getting more difficult.

Form factor is opening new demand. The report identifies foldable, rollable and stretchable displays as the next growth axis. Global foldable OLED shipments are forecast to rise from 19 million units in 2022 to 90 million in 2027, an increase of more than 4.7x. Because these panels must withstand repeated folding and deformation, materials such as cover glass, adhesives and substrates, which determine durability, flexibility and transmittance, are becoming central to competitiveness. Commercialisation is under way: foldable smartphones are now an established category, LG Display has shown a 65-inch rollable OLED for TVs, and Samsung Display exhibited a Micro LED-based stretchable display at IMID 2024.

AI is widening the use cases. Displays are taking on a larger role in wearables, XR/AR devices, vehicles and robots. The display market for XR/AR devices is projected to grow from USD 1.34bn in 2024 to USD 11.86bn in 2029, a CAGR of around 55%. Global wearable device shipments are forecast to rise from around 580 million units in 2025 to 660 million in 2029, and the hardware market for in-vehicle infotainment in software-defined vehicles from about USD 26.9bn in 2023 to USD 37.3bn in 2028. The personal robot market is expected to expand from USD 0.53bn in 2026 to USD 3.92bn in 2032. In response, the report proposes a "3+1 strategy": a widening lead in picture quality, scalable form-factor manufacturing and AI-interface capability, supported by a stronger domestic ecosystem of materials, components and equipment suppliers.

M&A Implications. The shift in where display innovation happens is likely to change deal flow in the sector. First, as form-factor competitiveness depends increasingly on materials and components, panel makers and device brands could pursue bolt-on acquisitions or minority investments in suppliers with specialised technology in cover glass, polyimide substrates and adhesives. The report's call for a stronger domestic supply chain, set against patent disputes and tariff risk, points in the same direction. Second, segments where competitiveness has eroded, such as LCD, which has consolidated around Chinese producers, are candidates for carve-outs and divestitures as companies reshape their portfolios. Third, as demand diversifies into XR, automotive and robotics, we would expect more strategic partnerships and cross-border transactions that combine display capability with optics, sensors and software.