IPS Display Market Analysis

IPS Display Market (Global, 2023)

Introduction

The IPS display market is a key segment of the broader display technology landscape, characterized by its ability to deliver superior color accuracy, wide viewing angles, and enhanced performance in a wide range of applications, from consumer electronics to professional displays. IPS technology has gained a strong foothold in the market, as demand for high-quality visual experiences has grown in line with the proliferation of smart devices, advancements in gaming technology, and the growing demand for digital signage. This report examines the key trends, developments, and opportunities in the IPS display market, shedding light on the technological developments, trends, and consumer preferences that are influencing the market. Strategically, it will enable companies to position themselves to take advantage of the market’s current state and future prospects.

PESTLE Analysis

Political

In 2023, the IPS market will be affected by various political factors, including trade policies and international relations. For example, the United States government has imposed a tariff on certain components used in the production of IPS products, which has increased the cost of manufacturers. The tariff on imported IPS panels has been set at 25 percent, which will have an impact on companies that depend on overseas production. Geopolitical tensions in East Asia have led to tighter export restrictions on technology. More than 30 percent of IPS display manufacturers have reported supply chain problems due to political factors.

Economic

The economic outlook for the IPS display market in 2023 is characterized by a fluctuation in raw material prices and in the buying patterns of consumers. In the first quarter of 2023, the prices of raw materials such as indium and gallium, which are indispensable for the manufacture of displays, increased by about 15% from the previous year, mainly due to the supply-chain shortage and the increase in demand from the semiconductor industry. Also, the first-quarter sales of home appliances fell 8% from the previous year, resulting in the display industry’s reluctance to increase production and the resulting delay in releasing new products.

Social

The IPS display market is shaped by the trend of social trends towards higher-quality visual experiences. Surveys show that 72% of consumers purchase a new device with a good display. IPS is the preferred display due to its good color and wide-angle vision. Also, with the popularity of remote work and the Internet, the demand for large screens has increased by 25%, and people are trying to establish a good home office and entertainment environment. , driving the need for advanced IPS displays.

Technological

The IPS display market is a key one for the development of technology. In 2023, the use of micro-LEDs for brightness and contrast has spread, and more than 40% of IPS displays have this technology. The production of 8K resolution displays has also increased by 20% to meet the demand for ultra-high-definition content. The color performance of IPS displays has also been greatly improved by the use of AI calibration technology, and more than 35% of manufacturers have used this technology to optimize color performance.

Legal

In 2023, the IPS display market is mainly affected by international standards and regulations on environmental protection. In the European Union, the e-waste disposal standard has been strengthened. According to the Waste of Electric and Electronic Equipment (WEEE) directive, at least 65% of the waste of electrical and electronic products must be recycled. The number of ongoing lawsuits relating to display technology has risen to more than 15, which has affected the competition and the R & D strategies of major companies.

Environmental

It is well known that the IPS display industry is increasingly focusing on the environment. In 2023, about 30% of IPS display companies have already lowered their carbon emissions and shifted to green production methods. Also, the use of eco-friendly materials has risen. By 2025, about 25% of the new products are made with a high percentage of recyclable components. In addition, a worldwide effort to reduce the amount of e-waste has led to initiatives to achieve a 50-percent rate of product reuse by 2025. This has influenced the design and disposal of IPS display products.

Porter's Five Forces

Threat of New Entrants

The IPS display market has a medium barrier to entry, because of the considerable capital required for the development of the technology and the establishment of the production line. However, the rapid development of technology and the increasing demand for high-quality displays may lead to the emergence of new players, especially from emerging markets. Brand loyalty for established players is strong, which is a deterrent to new entrants.

Bargaining Power of Suppliers

The suppliers in the IPS market have a relatively low bargaining power. The number of suppliers of the components and materials required for IPS displays is high, which leads to price competition. The manufacturers have the option of changing suppliers without incurring major costs, which also reduces the power of suppliers.

Bargaining Power of Buyers

High - The buyers in the IPS market have high bargaining power, due to the availability of many alternatives and the low cost of switching. The consumers can easily compare products and prices, which puts the manufacturers under increased pressure to offer lower prices and higher quality. This is especially true in the area of consumer electronics, where brand loyalty is not as strong.

Threat of Substitutes

The threat of substitutes in the IPS Display Market is moderate. The advantages of IPS displays are color accuracy and viewing angle, but OLED and VA panels are gaining popularity. In some applications, these substitutes have comparable or even superior performance, which will change the preferences of consumers and affect market share.

Competitive Rivalry

Competition is intense in the IPS market, with several key players vying for market share. The pace of technological innovation is forcing companies to keep improving their products. Price competition is also fierce, as manufacturers seek to differentiate themselves in a crowded market, resulting in a high degree of product differentiation, and a high degree of marketing activity and product launches.

SWOT Analysis

Strengths

• High color accuracy and wide viewing angles enhance user experience.
• Growing demand in consumer electronics, particularly in smartphones and televisions.
• Technological advancements leading to improved display performance and energy efficiency.

Weaknesses

• Higher production costs compared to other display technologies like TN and VA.
• Slower response times may not meet the needs of high-speed gaming applications.
• Limited availability of raw materials can impact production scalability.

Opportunities

• Expansion into emerging markets with increasing consumer electronics adoption.
• Integration of IPS technology in new applications such as automotive displays and smart home devices.
• Potential for partnerships with tech companies to innovate and enhance display features.

Threats

• Intense competition from alternative display technologies such as OLED and Mini-LED.
• Rapid technological advancements may outpace current IPS technology developments.
• Economic fluctuations and supply chain disruptions could affect production and pricing.

Summary

The IPS Display Market is characterized by the strength of color accuracy and the growing demand for consumer devices, and is challenged by high production costs and competition from other display technologies. Opportunities for growth are emerging markets and new applications. However, the rapid development of new technology and the instability of the macroeconomy are also a threat to the stability of the market. Strategic innovation and cooperation are the key to capturing the opportunity and reducing the risk.