The global display glass market has undergone significant shifts in 2024, marked by declining shipments, aggressive capacity expansions, and escalating prices. According to DSCC’s latest Quarterly Display Glass Report, the interplay between supply, demand, and regional market dynamics is shaping the industry’s trajectory.
Declining Shipments in 2024
Display glass shipments experienced a 2% quarter-over-quarter (Q/Q) and 1% year-over-year (Y/Y) decline in Q3 2024. This slowdown follows a robust second quarter, during which panel makers ramped up production to meet demand for summer sporting events. However, by Q3, manufacturers had scaled back utilization to prevent overbuilding inventory.
Looking ahead, shipments are projected to drop by an additional 7% Q/Q in Q4 2024, with a modest recovery of 2% Q/Q anticipated in Q1 2025. Despite the peak demand in Q2 2024, levels remain significantly lower than the industry’s record high in Q1 2022, underscoring persistent market challenges.
Capacity Expansion Outpaces Demand
Domestic Chinese glassmakers have aggressively added Gen 8.5 production capacity in 2023 and 2024, contributing to a 1% Q/Q and 3% Y/Y increase in total industry capacity by Q3 2024. However, this expansion has exacerbated an existing oversupply, leaving some facilities idle or underutilized.
Major manufacturers are striving to align production with demand, but the excess capacity continues to weigh heavily on the market. This mismatch highlights the critical need for adaptive strategies to ensure balance in production and inventory management.
Rising Prices Amid Currency Pressures
Price increases have been a dominant trend in 2024 as manufacturers address external financial pressures. Corning, the market leader in display glass by volume and revenue, has implemented consecutive price hikes to counterbalance the depreciating Japanese yen.
Following a successful price increase in 2023, Corning raised prices by 3% in Q3 2024 and plans further increases of 10% in Q4 2024 and 4% in Q1 2025. These measures aim to restore profitability to historical levels and demonstrate the company’s resilience amid currency volatility.
Regional Market Dynamics: China Ascends, Korea Declines
China has reinforced its dominance in the display glass market through robust production capacity and aggressive expansion. Meanwhile, Korea’s influence has diminished over the past decade, reflecting broader industry shifts.
Korea’s share of global glass demand dropped to a low of 5% in Q1 2023. While it recovered slightly to 7% in the second half of 2024, further growth seems unlikely as key players like Samsung and LG maintain reduced utilization rates to manage inventory.
Revenue Growth Outlook
Despite the decline in shipments, DSCC projects a 13% increase in display glass revenues in yen terms for 2024. However, currency conversion reduces this to a 5% growth in US dollar terms. Corning continues to lead in market share, but its position is being challenged by Chinese manufacturers leveraging new Gen 8.5 capacity to increase their output and market influence.
Insights and Industry Implications
The display glass industry in 2024 faces a convergence of challenges, including shipment declines, rising costs, and shifting regional power dynamics. Pricing strategies, particularly those by Corning, have become a focal point for addressing external financial pressures. However, oversupply from capacity expansions—especially in China—presents an ongoing challenge for balancing production and demand.
Navigating these complexities requires a dual focus on agility and efficiency. Rising prices can help offset currency devaluation, but prolonged oversupply risks eroding profitability. Companies must prioritize accurate demand forecasting, capacity management, and cost control to stay competitive in this evolving landscape.
Regional shifts, such as China’s growing dominance and Korea’s waning influence, add another layer of complexity. Businesses need to adapt their strategies to align with these macro trends, ensuring resilience against both geopolitical and economic uncertainties.
The future of the display glass industry hinges on its ability to harmonize short-term profitability with long-term market alignment. Strategic planning and operational flexibility will be critical in navigating the challenges ahead.
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