(I) Overall Scale
In 2025, China's small and medium-sized LCD industry will maintain a steady growth momentum. The market scale is expected to exceed 92 billion yuan, with a year-on-year growth of 6.9%. The shipment volume will reach 1.34 billion units, up 4.7% year-on-year, and the shipment area is projected to increase to 157 million square meters, growing by 6.1% year-on-year. This growth is driven by multiple factors, including the booming smart wearable devices, accelerated localization of in-vehicle displays, and the release of demand in emerging markets. From a global perspective, mainland Chinese manufacturers have increased their global market share in this field to 61.5%, up 2.3 percentage points from 2023, continuing to lead the global industry development.

(II) Product Structure
 • Size Distribution: Panels of 2.4-6.0 inches remain the mainstay of the market, accounting for 78.6% of total shipments. Among them, products of 5.0-6.0 inches are mainly used in entry-level smartphones, with shipments expected to reach 720 million units in 2025. The dedicated size range of 1-2.3 inches for wearables registers the fastest growth rate, with an annual increase of 8.7%.

• Technology Structure: a-Si LCDs still maintain a dominant position, with their shipment share expected to be 79.2% in 2025, though the share is steadily declining. The proportion of LTPS-LCDs will rise to 20.8%, mainly applied in mid-range smartphones and tablets. New oxide semiconductor LCDs such as IGZO hold a stable share of 3.2%, focusing on high-resolution medical equipment applications.

(III) Application Structure
1. Smartphones: Remaining the largest application field, it accounts for 53.9% of total demand. Shipments are expected to reach 690 million units in 2025, with a penetration rate of up to 82% in models priced between 500 and 1500 yuan.

2. Smart Wearables: Becoming the fastest-growing segmented market, its shipments are projected to hit 230 million units in 2025, a year-on-year increase of 8.7%. This growth is mainly driven by the popularization of children's watches and health monitoring bracelets in emerging markets.

3. In-Vehicle Displays: Emerging as a core growth driver, shipments will exceed 100 million units in 2025, with a market scale expected to reach 60 billion yuan. Among them, small-sized panels of 7 inches or smaller account for over 65%, and demand is strong in scenarios such as central control screens and electronic rearview mirrors.

4. Industrial Control & Medical: Maintaining stable growth, the industrial control sector is expected to see an 18% increase in procurement volume in 2025, driven by demand for wide temperature range and high brightness. The medical sector, driven by endoscopes and ultrasonic diagnostic equipment, will witness a demand growth rate of over 25% for panels of 8.4-15.6 inches.