How Flat Panel Displays are Redefining Content Consumption

Rohith Ram

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Our current lifestyle is greatly influenced by smartphones, TV and computers. We use them in our workplaces, our homes and we are unable to go by a day without using them. This is seen as a social change and experts say that this influences our mind-set a great deal. So, let us look at the current market scenario, the challenges that it faces and how future technology is expected to unroll in the future.

The global market for flat panel displays was valued at $100 billion in 2020 and is expected to increase to over $125 billion in revenues by 2024 all over the world. The smartphone and TV product segments account for more than 65 per cent of the industry revenues while notebooks, monitors, tablets, automotive and other applications account for the rest. India has already established a substantial market-pull for display components and this market pull is accelerating to be a substantial fraction of the global display industry. The creation of an India-based display industry will require the union of market-pull, capital and knowledge.

Increasing demand for smartphones
India's market for flat panel displays is expected to increase by three times from $5.4 billion in 2020 to nearly $19 billion by 2025, according to a report by ICEA (India Cellular & Electronics Association). The reason cited for this growth is the increasing demand for consumer durables, especially smartphones. The industry body has said the cumulative market in the next 5 years was around $60 billion which is waiting to be tapped by domestic industry. Though India has steadily grown into a leading consumer market for display-centric products, it does not currently have a local display manufacturing industry and all display components have to be imported from overseas suppliers.

"We (India) currently consume 7-8 per cent of the global display production in India primarily for use in mobile, TV and IT hardware. With our current emphasis on electronic manufacturing in India and incentives to trigger this industrial sector, the demand for displays will increase multi-fold," said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA).

"There is no display fab in India today and this is the right time that we direct our focus towards building this strategic core industry in India," added Pankaj.

An articulate national policy is required to mobilize private sector companies to bring together capital and knowledge to establish a high-quality display Fabs. The national policy should extend government support towards providing financial incentives to display manufacturers and display supply chain companies who agree to make substantial investments under the private-public partnerships. The large Indian corporates needs to come forward in order to establish this strategic industry in India.

The export opportunities as a result of this strategy could bring in a benefit of about $11 billion per year by 2025. Also, an important problem of unemployment in our country could also be addressed by this strategy as it would create around 2,00,000 new jobs in this sector.

"Displays are the windows to the digital world of data. They make it possible for data to be visualized in a human-readable form. The display component industry is greater than USD 100 billion in size and it has spawned substantially

larger leveraged industries that manufacture and sell display-centric electronic products," said Dr G Rajeswaran, Director & CEO, Grantwood Technologies.

The flat panels industry has a bright future ahead. But as in every field, there are some challenges which would hinder the growth of the Industry. One of the main challenges that are seen for this industry is the growing tension between India and China.

Diplomatic tensions between India and China
At a time when India’s relationship with China is worsening amid a healthcare crisis, the Indian government has decided to halt the approvals for the import of several electronic devices from China. The restriction is placed on electronic products with WIFI modules such as Bluetooth speakers, wireless earphones, smartphones, smartwatches and laptops. The import restriction is expected to affect many notable American and Chinese brands as they are now looking to delay launches in India as India is one of the largest consumers for electronic products in the world.

The Communications Ministry's Wireless Planning and Coordination (WPC) Wing has reportedly held the approval requests for all product launches in India, as per Reuters. So far, over 80 such applications are reportedly pending with the WPC. Several Indian firms are also waiting for approval to import their products from China.

It is important to note that the decision has come at a time when the Indian government is trying to achieve greater economic self-reliance, especially with schemes like production linked incentives (PLIs) in the arsenal. With great reliance on smartphones, the leader in the sector, whatever innovations are brought to this segment would likely affect the entire sector in a great deal. One such technology which is expected to hit the Industry is 5G.

5G
When the 5G bandwagon hits the market, at least 40 million smartphone users are expected to move towards this technology. The cost of the upgrade could also easily be 50 percent more than the previous 4G network. But the users are expected to adapt to this in light of the new services that are to be introduced. 22 per cent of smartphone users in urban India already own a 5G-ready smartphone, mostly Android devices from big brands and even some domestic brands.

Jasmeet Singh Sethi, who heads the Ericsson ConsumerLab, says “So, there is a great foundation for the 5G launch available in India… but, of course, we need to show them a reason to go ahead and upgrade,” adding that this is where better marketing, education and awareness is going to be the key in India.

“So, if consumers start believing they have coverage where they work and live, they are much more likely to kind of take up a 5G plan. So, one part is the perception of availability, which is how much time they are going to be on the 5G network. The other part, he says, is marketing. There is a lot of appetite for speed and better performance, but we have also seen that there is a lot of appetite for new services,” he says, underlining the need to offer more bundled services.

A report shows that 5G-ready smartphone users in India already spend more time on enhanced video and multiplayer mobile gaming and these users are expecting to spend upwards of 7.5 hours a week on XR (extended reality) apps by 2025. But then the availability of these services will be crucial in ensuring the adoption of 5G services.

Apps influencing the growth
Our life is dependent on smartphones and the features and services that are offered through it. Commuting services, food and crucial medical supplies delivery services are achieved through the usage of smartphones. Ola and Uber have changed the way we commute and have helped give birth to an on-demand economy. Due to the instant accessibility and convenience, more and more entrepreneurs are jumping on this bandwagon. Many apps like Uber, Postmates, Zomato, Swiggy and Dunzo have become a reliable link between service providers and customers.

Due to its immense popularity and profitable business model, there are plenty of start-ups planning to invest in apps similar to UberEats by 2025. The on-demand delivery market is estimated to generate $535 billion.

Airbnb for travellers, Zomato and Swiggy are for food delivery, whereas Uber and Ola have all done their part to make transportation easier. These apps dominate the market in their respective regions. This is one reason that brick-and-mortar business owners invest in developing a mobile app as it offers worthwhile returns. Moreover, on-demand apps are a boon for busy people. All of these factors point to great commercial potential so the trend is unlikely to slow down anytime soon.

With these future trends likely to increase the market growth for the industry, the challenges that are present in today’s scenarios are expected to be dealt with and overcome.