Small-Medium Display Market: A Shifting Landscape in 2025 and Beyond
The small-medium display market, a crucial segment powering smartphones, smartwatches, and other portable devices, is undergoing significant shifts. Recent analysis from Omdia sheds light on these changes, highlighting inventory adjustments, tariff impacts, and the evolving dominance of AMOLED technology.
The 2025 Downturn and Its Drivers
Omdia’s 2Q25 Small Medium Display Market Tracker predicts a 10% quarter-on-quarter (QoQ) and 6% year-on-year decline in shipments. This downturn, according to the report, isn’t a sign of long-term decline but rather a correction. It stems from device makers, particularly those in the smartwatch and smartphone sectors, adjusting their inventory levels.
Remember the tariff anxieties? In late 2024 and early 2025, manufacturers aggressively stockpiled panels to mitigate potential tariff risks. As tariff concerns eased in 2Q25, these brands became more cautious with their purchasing, leading to reduced shipments.
Did you know? The term “small-medium display” refers to panels under 9 inches, a category dominated by smartphones and smartwatches.
AMOLED’s Reign and the Competitive Landscape
Despite the overall market dip, AMOLED (Active Matrix OLED) panels continue to dominate, holding a steady 58% market share. These high-performance displays are the preferred choice for premium smartphones and smartwatches, offering superior image quality and energy efficiency.
This dominance puts pressure on other display technologies, especially LTPS TFT LCD. While AMOLED maintains its stronghold, we’re also seeing a stable demand for a-Si TFT LCD panels, especially in entry-level mobile phones, prompting more Chinese manufacturers to increase production in their larger LCD fabs.
Pro tip: Keep an eye on the cost of AMOLED panels. As production scales and technologies improve, prices could become more competitive, further accelerating AMOLED adoption.
The Impact of Tariffs and Global Dynamics
The specter of tariffs continues to influence the small-medium display market. While smartphones were initially exempt from reciprocal tariffs in 2025, the possibility of tariffs on China-made devices to the US significantly impacted inventory strategies. This is particularly relevant because a large percentage of Apple’s iPhones are assembled in China and shipped to the US.
Moreover, domestic consumer electronics subsidies in China fueled robust smartphone sales, impacting demand for display panels. These factors, combined, illustrate the complex interplay of global trade policies, consumer demand, and supply chain dynamics.
Future Growth and Diversification
Omdia anticipates a return to growth in the second half of 2025, driven by the market’s ongoing diversification. Display manufacturers are expanding beyond smartphones, targeting a wider range of devices and applications. This includes automotive displays, mobile gaming consoles, and other emerging technologies.
As we can see from the Omdia report, amusement displays, driven by new mobile game consoles, are seeing significant growth. This diversification will be key to sustaining the small-medium display market in the long run.
Related article: Display Technology Trends: What to Watch in the Next 5 Years
FAQ: Your Burning Questions Answered
- What is the primary driver of the 2025 downturn? Inventory adjustments by device makers.
- What is the market share of AMOLED panels? 58%.
- What applications are driving growth? Mobile game consoles, automotive, and smart home devices.
- What are some key trends impacting the market? Tariffs, supply chain adjustments, consumer demand.
The small-medium display market is a dynamic and evolving landscape. By understanding the key trends – from inventory adjustments to the rise of AMOLED and the impact of global trade – we can better anticipate the future of this critical industry. For more in-depth information, check out the full Omdia report.
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