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Product category: Recruitment, Reports and Resources
News Release from: Frost and Sullivan
Edited by the Electronicstalk Editorial Team on 28 July 2003

Report analyses world flat panel display
markets

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Flat panel display manufacturers across the world are enhancing the quality of resolution while striving to reduce production costs.

Flat panel display (FPD) manufacturers across the world are enhancing the quality of resolution while striving to reduce production costs This is likely to increase the use of FPDs in many end-user applications

New analysis from Frost and Sullivan reveals that the global flat panel display market generated revenues worth $33 billion in 2002 and is likely to reach $99.26 billion in 2009.

"A pressing technology challenge for manufacturers is to increase resolution without reducing brightness, which requires a considerable amount of research, investment, and time", says Frost and Sullivan Industry Analyst Raman Monga.

Active matrix liquid crystal displays are currently dominating the market despite their limitations in viewing angle and slow response time.

Manufacturers have begun to use higher generation fabs capable of enhancing production yields and ensuring cost savings.

For instance, the use of large glass substrates reduces cost while increasing production yields thin film transistor (TFT) LCD panels.

TFT LCD is the leading technology in the notebook computer market.

In line with the growing buoyancy of the TFT LCD segment, we will see a shift in market share toward AMLCD during the forecast period.

The dominance of TFT LCDs is shrinking the size of the super-twisted nematic (STN) LCD market.

While the AMLCD market is projected to gain, the PMLCD market is anticipated to lose market share.

Against a backdrop of price reductions in the TFT LCD sector, the AMLCD market is likely to experience higher market penetration and an increase of market share from 72.6% in 2002 to 76.2% in 2009.

Low temperature polysilicon (LTPS) is emerging as a next generation technology well suited for small panel and battery driven applications including mobile wireless handsets, PDAs and high end notebook computers.

"Huge upfront capital investments are required to develop high-yield manufacturing facilities", says Monga.

"Given the bleak economic situation, raising capital is a tough proposition and manufacturers should be assured of returns before making such high-risk investments".

Many startup companies are developing organic light emitting diode displays, a flat panel display that is superior to active matrix liquid crystal displays.

However, they should reduce high costs involved in mass production and address key issues related to materials, colour gamut, and process technologies for greater market acceptance.

Selling prices are declining sharply with the rise in production capacities and the subsequent commoditisation of FPDs.

Manufacturers will be slashing prices further as inexpensive cathode ray tube displays and new market entrants intensify competition, leading to a decrease in profit margins.

"Market participants should focus on multiple end-user verticals such as telecommunications, consumer electronics, automotives, medical, aerospace, and defence as well as emerging markets in the Pacific Rim and China to boost their revenues", Monga emphasises.

There are over 150 companies in the world FPD equipment market.

As market penetration increases, new competitors are likely to enter the FPD market.

The FPD market is in the development stage and has not yet approached the same level of competitiveness as more mature markets.

However, as manufacturers and end users become more familiar with the technologies, the level of competition is expected to become fiercer.

The most prominent market players are Samsung, LG Philips LCD and AU Optronics, with strong presence across all the key geographic markets.

Sharp, Chi Mei Optoelectronics and Chunghwa Picture Tube complete the list of top six suppliers.

As new competitors enter the market, the top three competitors' share will decline.

The rate of technical change is high in the FPD equipment market.

The markets that FPD services are typically high-end and include telecommunications, computing, aerospace/defence, medical, and automotive.

These markets are constantly evolving.

End-user applications are becoming smaller with higher functionalities.

Decreasing component size and fine pitch components are expected to keep the rate of technical change high.

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