As we navigate through 2025, the display market continues to evolve, driven by various factors including technological advancements, macroeconomic influences and shifting consumer behaviors.
The channel and distribution side of the display market has undergone significant changes recently, including the rise of e-commerce and direct-to-consumer sales, which has disrupted the traditional distribution model. This shift has forced manufacturers and integrators to adapt their strategies to meet the changing demands of the market. We can expect further evolution in this space as we go deeper into 2025, with a greater emphasis on digital channels and streamlined logistics to enhance efficiency and customer experience.
Economic Waves Shaping the Display Market
Several macroeconomic factors have already impacted the display market in Q1 2025. One of the most significant is the ongoing global economic uncertainty, which has led to cautious spending by both consumers and businesses. Inflation and rising costs of raw materials are also contributing to higher prices for display products, which may dampen demand. Additionally, the political climate, particularly regarding tariffs and trade policies, will play a crucial role. The outcome of negotiations on tariffs could either alleviate or exacerbate the cost pressures on manufacturers and consumers alike.
Customer Behavior: A Rapidly Evolving Environment
Customer behavior has been a key driver of change in the display market. In 2024, we observed a trend towards more cautious spending, with consumers prioritizing essential purchases over discretionary items. We expect this to continue throughout the year due to the macroeconomic factors mentioned earlier. However, there are also opportunities for growth in specific segments. For instance, the healthcare and retail sectors are likely to invest more in advanced display technologies to enhance customer experiences and operational efficiency.
Automation: The Efficiency Game-Changer
Automation presents a significant opportunity for innovators in the display market. By leveraging automation, manufacturers and integrators can drive efficiency and reduce costs. This includes the use of AI-enabled, self-guided kiosks in government processes, such as the DMV, to streamline administrative tasks. Automation can also enhance the production and distribution processes, leading to faster turnaround times and improved product quality.
Integrator Space: The Consolidation Wave
The integrator space has seen considerable consolidation, and we expect to see this continue throughout the year. Integrators are seeking ways to compete by driving projects that offer new value and differentiation in the market. This includes exploring new business models, such as display as a service, and partnering with manufacturers that are likely to withstand market headwinds. The focus will be on delivering innovative solutions that meet the evolving needs of customers.
Display Technologies: The Bright Future
In terms of display technologies, direct-view LED (DVLED) is anticipated to see broader deployment and increased demand. While it may not surpass other technologies like LCD in terms of size, it will continue to be a dominant force in the market. However, certain sectors, such as education, may experience a slowdown due to previous heavy investments. On the other hand, projection technologies are expected to see a resurgence, driven by advancements in technology and new applications.
Growth Opportunities and Challenges
Several vertical markets are primed for growth. The healthcare sector is expected to invest in upgrading their display technologies to improve patient care and operational efficiency. The retail sector, especially luxury, will also try to upgrade their displays to compete with online retail. However, challenges remain in some industries, including labor shortages and the ongoing competition in the streaming space, which impacts the cinema sector.
Addressing the Needs of Large Customers in a Global Landscape
As the display market expands globally, large customers — such as multinational corporations, global retailers, and international healthcare providers — are becoming increasingly demanding in their requirements. These customers seek not only cutting-edge technology but also consistent, reliable support across multiple regions. They want seamless integration of display systems across their global operations, with scalable solutions that can be deployed and maintained worldwide.
This growing demand for global support calls for manufacturers and integrators to refine their international capabilities, build stronger global logistics networks, and offer comprehensive after-sales service that meets the unique needs of these large-scale customers. Addressing these needs will be crucial to staying competitive in the market, especially as industries become more interconnected and companies expand their global reach.
Conclusion
As we move through 2025, the display market will continue to evolve through a complex interplay of factors. From the evolution of the channel and distribution models to the impact of macroeconomic conditions and changing consumer behaviors, the industry must navigate a dynamic landscape. By focusing on automation, driving efficiencies, and exploring new business models, manufacturers and integrators can position themselves for success in this fluctuating market.
Mark Quiroz is senior vice president and general manager, Display Division, Sharp Business USA
