Omdia Predicts Display Glass Supply to Be Constrained in 2025

Rhea-AI Summary

The flat panel display (FPD) glass market is projected to face significant supply constraints in 2025, according to Omdia's analysis. Leading manufacturers like Corning, AGC, and NEG have shifted from market share competition to focusing on profitability due to rising energy costs and price declines.

Glass makers have implemented price increases exceeding 10% in both 2H23 and 2H24 to counter high energy expenses, which comprise over 50% of production costs. The industry has also reduced inventory levels from two months to optimize profitability. A November 2024 fire at a major glass facility has further strained supply.

With demand growth expected to outpace capacity expansion in 2025, particularly in Q2 and Q3, Chinese manufacturers are aggressively investing in new facilities and offering competitive pricing. The market revenue is forecasted to grow 15% from $6.12 billion in 2024 to $7.05 billion in 2025.

Positive

• Market revenue projected to grow 15% to $7.05 billion in 2025
• Successful implementation of 10%+ price increases in 2H23 and 2H24
• Strong demand growth expected in 2025

Negative

• Significant supply constraints expected in 2025, especially Q2-Q3
• Rising energy costs impacting profitability (>50% of production costs)
• November 2024 fire at major facility further constraining supply
• Increased competition from Chinese manufacturers offering lower prices

LONDON--(BUSINESS WIRE)-- The market for flat panel display (FPD) glass is expected to face significant supply constraints during 2025 according to the latest analysis from Omdia. Leading glass makers including Corning, AGC, and NEG have historically engaged in intense price competition, prioritizing market share expansion. However, over the past several years, the combination of rising energy costs and sustained price declines has caused them to shift their focus toward improving profitability, leading to strategic production adjustments.

Glass supply substrate supply demand model

Glass production is an energy-intensive process requiring temperatures exceeding 1000 degrees Celsius to melt glass materials. Energy expenses account for more than 50% of the total production costs, and the combination of increasing costs and declining glass prices has severely impacted profitability. In response, leading glass makers raised glass prices by more than 10% in both 2H23 and 2H24, aligning with inflationary pressures in energy costs.

Previously, glass makers maintained over two months’ worth of inventory as a safeguard against disruptions such as glass tank failures, which can take months to recover from. However, over the past 5 years, glass makers have adjusted their production based on shipment volumes to protect profitability, reducing available inventory.

In November 2024, a fire at one of the largest glass makers exacerbated the supply shortage of FPD glass. With glass demand growth expected to exceed capacity expansion in 2025, supply constraints are expected, particularly in 2Q and 3Q25.

Meanwhile, Chinese glass makers are aggressively investing in new glass tank facilities and offering lower prices than leading global producers. This competitive push may enable them to gain market share in 2025.

“With supply/demand expected to remain extremely tight in 2025, FPD glass makers are likely to implement further price increases this year. As a result, market revenue is forecasted to grow by 15%, rising from $6.12 billion in 2024 to $7.05 billion in 2025,” said Tadashi Uno, Display Research Manager at Omdia.

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250313476488/en/

Fasiha Khan: fasiha.khan@omdia.com

Source: Omdia

FAQ

What is causing the FPD glass supply constraints expected in 2025?

Supply constraints are due to demand growth exceeding capacity expansion, reduced inventory levels, and a November 2024 fire at a major glass facility.

How much have glass makers increased their prices in response to rising costs?

Glass makers implemented price increases of over 10% in both second half of 2023 and 2024.

What is the projected market revenue for FPD glass in 2025?

The market revenue is expected to grow 15% to $7.05 billion in 2025, up from $6.12 billion in 2024.

How are Chinese glass manufacturers responding to the market situation?

Chinese manufacturers are aggressively investing in new glass tank facilities and offering lower prices to gain market share.

What percentage of glass production costs is attributed to energy expenses?

Energy expenses account for more than 50% of the total production costs in glass manufacturing.