The global display market outlook has deteriorated significantly, with 2026 demand forecasts revised sharply downward, according to Omdia’s Display long-term demand forecast tracker. Unit demand is now expected to decline by 6% year-over-year, a substantial downgrade from the previously forecasted 2% decline. Area demand growth has also been reduced to just 1%, down from a prior projection of 6%.
The sharp revision reflects mounting pressures from the heightened geopolitical tensions in the Middle East, escalating component costs, and ongoing supply chain disruptions which are forcing manufacturers to raise prices and could dampen consumer demand throughout 2026 and beyond.
Ricky Park, Senior Principal Analyst in Omdia’s Display research practice, said: “The display industry is navigating a perfect storm of challenges. The ongoing geopolitical instability in the Middle East has materially affected cost structures across the supply chain, with rising oil prices, memory component costs, and tariff-related pressures forcing manufacturers to reconsider pricing strategies. This has led us to significantly downgrade our demand outlook compared to previous forecasts.”
The geopolitical developments in the Middle East have contributed to rising costs across the display supply chain. Rising oil prices are increasing up costs for raw materials and key components, placing pressure on both panel makers and set manufacturers. Combined with sharp increases in memory component prices and ongoing tariff issues, manufacturers face difficult decisions over whether to absorb costs or pass them on to consumers.
TV panel demand in 2026 is now expected to decline by 2.0% year-over-year. Despite strong panel purchases in late 2025, driven by Chinese TV manufacturers securing inventory at historically low prices, TV manufacturers are now expected to raise retail prices in response to elevated supply chain costs. This may reduce market demand or lead to market share losses.
The notebook display market faces particularly acute challenges. PC brands have begun raising prices by 20-30% starting in Q2 2026, which could freeze replacement demand. The 2026 notebook display demand forecast has been revised downward by approximately 7.2 million units compared to previous projections. Demand is expected to weaken further in the second half of 2026 as price increases take effect.
Panel suppliers face a challenging environment in 2026, with utilization rate management becoming critical as demand softens. Set manufacturers must balance competitive pricing with rising production costs, potentially resulting in specification downgrades or reduced profit margins.
