Global flat panel display (FPD) shipments are projected to decline by 4.7% year-over-year in 2026, according to analysis by Counterpoint Research. The downturn is primarily attributed to significant price increases for memory components, driven by escalating demand from AI data centers, which are subsequently impacting end-device pricing and consumer demand across key FPD applications.
The surge in memory chip costs is leading to higher retail prices for a range of electronic products, consequently reducing consumer demand. This effect is particularly pronounced in the low to mid-range segments of the smartphone and PC markets, where manufacturers struggle to maintain competitive pricing.
Memory Prices Impact Key Segments
“High prices for memory chips are leading to price increases across a range of electronics products, leading to reduced demand,” stated Bob O’Brien, Research Director at Counterpoint Researc (https://www.counterpointresearch.com/). “Especially in the low to mid-range segments of the smartphone and PC markets, OEMs are unable to hit the aggressive prices of years past, and consumers are deciding to delay purchases or shop the second-hand market.”
The mobile phone sector is forecast to experience a notable decline in FPD shipment volume, projected down 9.5% year-over-year in 2026.
In the IT sector, while strong first-half shipments have mitigated the immediate impact, the downturn is now expected to extend into 2027. FPD shipment volumes for monitors are projected at -1.7% year-over-year in 2026, an upward revision from a previous forecast of -3.0%. Similarly, FPD shipment volumes for notebooks are forecast at -2.7% year-over-year, an improvement from the earlier -8.8% projection. However, the rising cost of finished products suggests potential panel procurement adjustments in 2027, with declines anticipated for both monitor and notebook panels next year. For more insights into these and other related industry developments (https://technosports.co.in/), further analysis can be found on TechnoSports.
OLED and Automotive Displays Show Resilience
Despite the broader market challenges, premium display technologies and specific market segments are demonstrating resilience. Manufacturers are enhancing their premium offerings with OLED displays, particularly in response to difficulties in the low and mid-tier markets. OLED monitor panel shipments are forecast to increase by 60% year-over-year in 2026, with OLED notebook panel shipments projected to rise by 50% year-over-year.
The television panel market is experiencing minimal impact from the memory shortage due to TVs’ lower reliance on these components. Mini LED FPD shipments for televisions are projected to see year-over-year growth exceeding 10% in both 2026 and 2027.
The automotive display segment remains a significant growth area for the FPD industry. Driven by evolving auto design trends that incorporate more flat panel displays per vehicle, automotive displays are the only FPD application among the six major segments expected to record year-over-year growth in 2026. This momentum is anticipated to continue into 2027. Beyond unit growth, the increasing average screen size for automotive displays is expected to drive even higher revenue growth within the sector.
