After a year of weak growth for the LCD TV industry in 2013, worldwide shipment growth has accelerated every quarter in 2014, with total units rising more than 10% in the third quarter.
The latest Quarterly Global TV Shipment and Forecast Report from DisplaySearch, part of IHS, has raised the global forecast for 2014 LCD TV shipments to 223-million units, which is a 7% increase over the previous year on a unit basis, and a 16% increase on an area basis. The LCD TV shipment outlook for 2015 was also increased to 239-million units, as recent growth trends appear to be sustainable.
“LCD TV shipments from manufacturers to retailers in the third quarter was stronger than expected in several regions, but especially in North America and Asia-Pacific,” says Paul Gagnon, director of TV research for DisplaySearch. “Growth in these regions is driven by a new wave of replacement activity, with North American consumers replacing older flat-panel TVs and consumers in India and other Asia-Pacific countries replacing CRT TVs.”
Consumers continue to trade up to larger screen sizes, increasing the average size of LCD TV shipments 5% to 39 inches, which is more than 1,5 inches larger than last year. This increase in average size, combined with stronger unit growth, is fuelling renewed investment in LCD panel production capacity.
Larger sizes have also contributed to revenue growth and have helped to stabilise overall industry prices, on a volume-weighted basis. The shift to larger sizes has also resulted in strong demand for 4K LCD TVs, which are expected to grow more than 50%, reaching more than 32-million units in 2015.
Year-over-year LCD TV shipments to retailers in North America increased nearly 24%, in the third quarter (Q3); however, year-to-date growth has so far significantly outpaced sales to consumers.
“Very strong growth in North America in recent quarters warrants careful observation, to ensure an inventory glut doesn’t materialise, due to overzealous buying and selling at the manufacturer to retailer level,” Gagnon says. “A strong holiday season is needed to avoid an inventory hangover in early 2015.”
