LCD TV shipments to nearly double by 2012

USA: Global shipments of LCD TVs will nearly double from 2008 to 2012, driven mainly by falling prices and consumer demand for flat screens and the High-Definition (HD) format, according to iSuppli Corp.

Worldwide shipments will rise to 193.9 million units by 2012, increasing at a CAGR of 67 percent from 100.1 million units in 2008. This explosive growth is being driven by widespread acceptance in worldwide markets.

“Consumers no longer want bulky, heavy CRT TVs that have inferior resolution,” said Riddhi Patel, principal analyst for television systems at iSuppli. “Instead, they want space-efficient sets that can support the full-HD 1080p pixel format. Furthermore, declining prices are enabling more consumers to adopt the technology. LCD-TVs in the 42-inch size range in the first quarter of 2006 were priced at $2,000 and above, but now can be purchased for less than $1,000, making them affordable for a wider range of consumers.”

Another factor promoting greater consumer acceptance is aggressive promotion of LCD-TV technology by the leading brands. This is attracting consumers that may not have been familiar with the technology but now have an interest in 1080p after reading or hearing about it, Patel noted.

Regional variations
Regionally, Europe and North America continue to be the largest markets for LCD-TVs and shipments in those regions will grow at 13 percent and 10 percent CAGRs between 2008 and 2012, respectively. Japanese shipments will remain flat, but sales in China will rise due to the huge uptake in interest spurred by the 2008 Beijing Summer Olympic Games.

The rise of full HD
As consumers begin to embrace larger LCD-TVs sized 50-inches and more, support for full-HD is becoming critical. An increasing number of brands are adopting a full-HD lineup for sets 37-inches and larger in order to differentiate their products from the competition and to be able to charge premium pricing.

Furthermore, increasing availability of content in the form of Blu-ray DVDs, game consoles and other devices is increasing consumer incentives to buy a full-HD set that can support the best viewing experience. Shipments of full-HD sets will grow at a 45 percent CAGR between 2008 and 2012 to reach 104 million units or 54 percent of the market by 2012. In 2007, these sets accounted for a mere 14 percent of LCD-TV shipments, but will grow to 23 percent of the 100-million-unit market in 2008.

LCD TV trends
Some interesting trends are emerging in the LCD-TV market that will further promote demand and profitability of companies competing in this sector, including:

* The rising use of desktop PC monitor panels for TVs—specifically for smaller sizes of 15-, 19- and 22-inches.
* Increased emphasis on 120Hz panels. Premium brands are offering a 120Hz refresh rate in their high-end full-HD product lines, specifically in 40-inch and larger sizes. The faster refresh rate improves the overall viewing experience. Such 120Hz sets will account for about 15 to 18 percent of total 40-inch and larger-sized LCD shipments in 2008. The availability of thin-bezel TVs that make the sets look larger and more attractive.
* Slim LCD-TVs have been demonstrated and likely will be available in 2009. This technology will be a means of product differentiation as well as a way to provide consumers with a newer form factor that is attractive and suits their lifestyles.
* Connectivity options like wireless, Ethernet, USB and SmartMedia are becoming increasingly available.

Overall, LCDs have emerged as the leading technology in the television market because of the continued support and interest from panel makers, brands, retailers — and consumers.