Omdia research finds unprecedented polarizer oversupply

This growth is largely attributed to increasing consumer preference for larger-size televisions as price declines for larger-format TVs drive sustained demand for polarizers.

As the production of panels moves to China, the manufacturing of polarizers is also becoming more centralised in the country. In 2020, China's Shanjin Optoelectronics acquired the LCD polarizer business division from LG Chem in Korea. Following this acquisition, Chinese firms have been actively investing in polarizer production to enhance their market position. This trend has led to persistent concerns about a potential oversupply compared to demand.

The graph illustrates the forecast for polarizer supply and demand. In 2024, a stable surplus of the polarizer glut is expected 10% and will gradually increase to 19.5% by 2027. Leading Chinese polarizer manufacturers including Shanijin Optoelectronics, Sunnypol, and HMO (Heongmei Optoelectronics) have chosen to postpone their capacity expansion plans by one to two years due to production capacity exceeding demand.

Discussing the market movements, Irene Hao, Omdia Principal Analyst noted: “In response to the substantial investments made by Chinese companies, polarizer manufacturers in Japan and Korea are streamlining inefficient production lines or divesting certain business units. Between 2023 and 2024, LG Chem and Samsung SDI sold their polarizer divisions to Chinese companies, while Japan's Sumitomo Chemical is considering the sale and closure of several production lines. As the supply of polarizers diminishes, the polarizer glut is expected to remain balanced and stable until 2025.”

Nevertheless, long-term concerns about oversupply persist. According to modelling by Omdia, if the delayed polarizer factories begin production in late 2026, supply is expected to outpace demand once more.

The Omdia Display Optical Film Market Tracker provides insights into recent mergers and acquisitions in the display optical film sector, emphasising their impact on production capacity and the overall supply chain.