Industry Overview: Shipment volumes are rising, while revenue is declining. According to Omdia’s latest data from June, global shipments of LED video displays in Q1 2026 increased slightly by 0.6% year over year, yet revenue fell 2.3% compared with the same period last year—marking the first year-over-year revenue decline since 2022. Another noteworthy signal: Omdia forecasts that global demand for display panels will drop 6% year over year in 2026, with area‑based demand growing by only 1%. However, “rising volume but falling prices” does not mean the industry lacks opportunities. Structural differentiation is underway: revenue from traditional core product lines (with pixel pitches of 1.0–1.99 mm) declined 6.8% year over year, while demand in niche segments such as automotive, energy storage, and medical applications is accelerating. It’s clear who is seeing a downturn and who is experiencing growth.

 

 

Industry Overview: Shipment volumes are rising, while revenue is declining.

According to Omdia’s latest data from June, global shipments of LED video displays in Q1 2026 rose slightly by 0.6% year over year, while revenue declined 2.3% compared with the same period last year—marking the first year-over-year drop in revenue since 2022. Another noteworthy signal: Omdia forecasts that global demand for display panels will fall 6% year over year in 2026, with area‑based demand growing by only 1%. However, “volume up, prices down” does not mean the industry lacks opportunities. Structural differentiation is underway: revenue from traditional mainstream product lines (with pixel pitches of 1.0–1.99 mm) fell 6.8% year over year, while demand in niche segments such as automotive, energy storage, and medical applications is accelerating. It is now clear who is facing headwinds and who is riding the wave.

Five Tracks Worth Paying Attention To
 

I. In-vehicle Displays: The Most Certain Growth Driver

In 2025, global shipments of automotive display panels are expected to reach approximately 240 million units, up 4.0% year over year, with projections exceeding 250 million units in 2026. The number of displays per vehicle is advancing from 2.5 to three—center‑console screen, instrument cluster, passenger‑side display, and electronic rearview mirrors—each additional screen representing a separate module requirement.

In-vehicle OLED is growing even more rapidly: the market size is expected to expand by 56.7% year over year in 2025, with Omdia forecasting a growth rate of 64.3% in 2026. However, LCD remains the dominant technology for automotive displays, while OLED is currently concentrated in high-end models. On the technology front, Mini LED–based in‑vehicle displays are emerging as a new focus; Honghe Technology unveiled the industry’s first zero‑OD Mini LED in‑vehicle display in June, and several manufacturers are leveraging their expertise in commercial‑display applications to enter the automotive sector.

II. Energy Storage and Power Supply Displays: Riding the Wave of New Energy Growth

In 2025, global shipments of energy‑storage battery cells are expected to reach 612.39 GWh, a year‑on‑year surge of 94.59%, with projections for 2026 at 740 GWh. From January to May 2026, cumulative domestic sales of energy‑storage batteries totaled 255.5 GWh, up 87.7% year over year—growth that is 2.5 times the pace of power‑battery sales during the same period. Charging stations, UPS systems, and portable energy‑storage devices all require status‑display modules, each imposing stringent requirements for wide temperature ranges, strong anti‑interference capabilities, and high brightness in outdoor environments.

III. Medical Equipment: High Gross Margins and High Barriers to Entry

In 2025, China’s medical device market is projected to reach RMB 1.22 trillion, with an average annual growth rate of 9.9% during the 14th Five-Year Plan period. Demand for display modules in equipment such as ventilators, oxygen concentrators, and ultrasound diagnostic systems is steadily increasing, and once a supplier enters the supply chain, the switching costs are high and vendor lock-in is strong. Medical‑grade certification, wide operating temperature ranges, and commitments to long‑life‑cycle supply serve as key entry barriers.

IV. HMI Human-Machine Interaction: From “Selling Displays” to “Selling Solutions”

Customers no longer just need a single display; they demand an integrated “display + touch + control” solution. With the convergence of touch and display, customizable dimensions and interfaces, and tailored application‑control systems, module manufacturers are shifting their value proposition from hardware to end-to-end solutions. Whoever can deliver out‑of‑the‑box interactive experiences will capture higher margins.

V. OLED for Small and Medium Sizes: IT and Automotive Are the Real Growth Drivers

AMOLED penetration in smartphones has entered a plateau phase (projected at 43.2% in 2026, up only 2 percentage points from 2025), but IT‑grade OLED is poised for rapid growth: OLED notebook shipments are expected to rise 44.9% year over year in 2026, while OLED desktop monitor sales are forecast to surge by 58.0%. For module manufacturers, automotive OLED and industrial‑control OLED represent promising areas that warrant proactive strategic positioning.

Two risks to be mindful of

 

First, global panel demand has been revised downward across the board. Geopolitical tensions in the Middle East and rising memory‑chip costs have prompted PC brands to raise prices by 20%–30%, potentially further dampening end‑user demand. Second, the price war is unlikely to abate in the near term. Revenue from products with pixel pitches of 1.0–1.99 mm continues to decline; under a “volume up, price down” dynamic, the strategy of competing solely on price is becoming increasingly unsustainable.

Conclusion The industry as a whole is under pressure, but demand remains highly certain across three key segments—automotive, energy storage, and medical. HMI solution capabilities and differentiated OLED strategies are the keys to profitability. Rather than engaging in price wars in red‑ocean markets, it’s better to deepen and excel within niche segments.

Data sources: Omdia, Counterpoint Research, CINNO Research, RUNTO, 360 Research Reports, Qunzhi Consulting, and the China Business Industry Research Institute.

About CNK

CNK Electronics, founded in Shenzhen in 2010 and expanding its investment in Wuping, Fujian, in 2019, is a nationally recognized “Little Giant” enterprise specializing in the integrated design, development, manufacturing, and sales of display devices. The company is committed to seamlessly blending smart technology with display innovation, offering customers worldwide a comprehensive portfolio of high‑quality, cost‑effective small- and medium‑size displays, along with tailored solutions and services. Guided by technological advancement and underpinned by uncompromising quality, CNK adheres to the principles of sustainable development, striving to become a leading innovator in the display industry and delivering superior, reliable, and responsive service to its clients.