Samsung and LG are under threat.

Korean companies like Samsung and LG are gradually losing market share to China in the global OLED panel market.

Lenovo's rollable laptop model uses OLED panels from Samsung. Photo: The Shortcut .

At CES 2025, Samsung Display showcased a 14-inch OLED screen that can be rolled up to 16.7 inches. The first laptop using this screen will be sold by Lenovo in June with a starting price of $3,500 .

Previously, LG Electronics introduced a transparent OLED TV in late 2024, creating the illusion of images floating in mid-air. The 77-inch version is expected to cost $60,000 .

Faced with increasing competition from Chinese companies like BOE and Visionox, Samsung and LG are seeking to regain market share with new OLED display technologies.

The risk of falling behind China.

After dominating the global liquid crystal display (LCD) market, LG and Samsung began developing OLED displays in 2010 for a variety of purposes, from smartphones and cars to TVs.

Data from display market research firm DSCC shows that Samsung will lead the OLED market in 2024 with a 42.2% market share, followed by LG Display (23.9%). In other words, these two companies hold more than half of the OLED panel market (66%).

Nevertheless, LG and Samsung could not avoid the rise of Chinese competitors. 2024 marked the first time Samsung's OLED panel market share fell below 50%. Conversely, BOE and Visionox's market shares reached 13.2% and 7.3%, respectively. Chinese companies held a combined market share of 33%.

According to Nikkei , BOE is building an OLED panel manufacturing plant with the goal of catching up with Samsung, expected to be operational from 2026. The company has invested $8.7 billion in the plant, which is expected to produce advanced 8.6-generation OLED panels.

LG's TV uses a transparent OLED panel. Photo: The Verge .

Chinese companies are leveraging smaller-sized display panels to increase their market share, such as in smartphone screens, because they are relatively easy to manufacture.

"If we're just talking about smartphone display panels, China will surpass South Korea in production capacity within the next few years," said Yoshio Tamura, vice president of research at DSCC .

In fact, South Korean companies are struggling in the display sector. In early January, LG Display announced an operating loss of $391 million for 2024.

This marks the company's third consecutive year of losses, especially as its LCD panel business faces fierce price competition from China.

Samsung's display division recorded operating profit of $2 billion from January to September 2024, down 18.6% from the same period last year. Analysts forecast that full-year profits could decline for the second consecutive year.

Competitive advantage

Samsung and LG aim to surpass China in the high-end display panel segment. According to Tamura, the advantage of the South Korean companies comes from "high quality and diversity."

"No Chinese company currently has the capability to mass-produce large-sized OLED panels," an LG Display representative emphasized at a press conference in Seoul, South Korea. The representative stated that the technological gap between South Korea and China is "approximately 10 years."

LG sold its flagship LCD display manufacturing plant in China in 2024. The proceeds are expected to be used to develop OLED technology for all sectors, not just large-format panels.

Samsung also invested $2.8 billion in an OLED panel production line at a key factory. The company is researching and developing medium-sized panels for PCs and other purposes.

A large Samsung display screen in front of a shopping mall in Seoul. Photo: Samsung .

In recent years, Samsung has also focused on developing displays for the digital signage market.

Late last year, the company installed a giant screen outside a store in the Myeongdong shopping district. Measuring over 71 meters wide and 17 meters high (almost the size of three basketball courts), the screen became a major tourist attraction.

Samsung has held the number one position in the digital signage market since 2009, and expects the market size to continue to grow.

“We expect the market size to grow at an average rate of 6.5% per year until 2028, but new technologies could accelerate that growth,” said Jeong Hoon, vice president of Samsung’s video display business.

Samsung also manufactures a wide range of display panels for businesses, restaurants, and hotels, as well as safety warning screens for government agencies.

"Because we manufacture substrates to order, our profit margins in this sector are much higher than those of consumer products," Jeong said.