Product category: Recruitment, Reports and Resources
News Release from: Frost and Sullivan
Edited by the Electronicstalk Editorial Team on 6 November 2006

LCD TVs drive flat panel display market

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New analysis reveals that world flat panel display markets earned revenues of $65.25 billion in 2005 and estimates this to reach $125.32 billion in 2012

New applications in consumer electronics, led by rising demand for liquid crystal display televisions (LCD TVs), are increasing the growth of the flat panel display (FPD) markets worldwide. The availability of mobile phones that provide full Internet access, electronic books and intelligent smart cards, along with the proliferation of handheld consumer appliances, have boost the demand ushering in additional avenues for revenue growth.

New analysis from Frost and Sullivan - 'World flat panel display markets' - reveals that the market earned revenues of $65.25 billion in 2005 and estimates this to reach $125.32 billion in 2012.

Due to increasing demand for lighter and thinner FPDs and large-screen TV models, the non-PC markets such as the high definition TV (HDTV), digital TV, mobile phones and personal portable electronic devices markets are expanding aggressively.

In 2006, the LCD TV segment alone expects to garner a phenomenal annual revenue unit shipment growth rate of 90%.

The plasma display panel (PDP) segment is also poised for substantial growth in certain categories of large-screen TV market due to its price advantage over LCD panels.

To maximise their revenues in the FPD market, panel manufacturers are fast diversifying into the price-sensitive consumer electronics market, apart from focusing on their traditional personal computer end-user segment.

'In making this shift to the consumer end-user applications markets, panel manufacturers need to decide judiciously on their product mix, which is a key determinant for safeguarding and optimising returns on investment', says Frost and Sullivan Research Analyst KVJ Subrahmanyam.

The need to enter into more lucrative segments and to leverage price advantages of volume production implies massive investment in higher generation fabrications, which are worth billions of dollars.

To hedge such risks, many FPD manufactures are forging strategic partnerships with market leaders.

'The recent merger of two major LCD companies, with and the increased emphasis on partnerships for sharing capital investment costs, has meant that panel manufacturers can no longer operate in isolation', says Subrahmanyam.

'They now need to concentrate on partnerships throughout the value chain'.

The cyclical FPD market is challenged by frequent price cuts, competition from low-priced cathode ray tubes (CRTs) and the influx of new market participants continued capacity expansion plans of industry leaders.

In order to effectively counter these market dynamics, panel manufacturers need to focus on fine-tuning their cost structures, innovation, diversified product-mix, and growth opportunities in new end-user categories such as automotive, medical, consumer, aerospace and defence.

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