LCD TV Shipment Forecast Revised Upward on Strong Consumer Demand For Larger Sizes, DisplaySearch Reports

Global LCD TV unit shipments are now expected to grow more than 7 percent in 2014, as average size continues to increase

December 31, 2014

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 percent in the third quarter. The latest Quarterly Global TV Shipment and Forecast Report from DisplaySearch, now part of IHS Inc. (NYSE: IHS), has raised the global forecast for 2014 LCD TV shipments to 223 million units, which is a 7 percent increase over the previous year on a unit basis, and a 16 percent 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 were stronger than expected in several regions, but especially in North America and Asia-Pacific,” said 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.”

Figure: Worldwide LCD TV Shipments
 [See attached chart]
Source: DisplaySearch Quarterly Global TV Shipment and Forecast Report

Consumers continue to trade up to larger screen sizes, increasing the average size of LCD TV shipments 5 percent 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 fueling renewed investment in LCD panel production capacity. Larger sizes have also contributed to revenue growth and have helped to stabilize 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 percent, reaching more than 32 million units in 2015.

Year-over-year LCD TV shipments to retailers in North America increased nearly 24 percent, 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 materialize, due to overzealous buying and selling at the manufacturer to retailer level,” Gagnon said. “A strong holiday season is needed to avoid an inventory hangover in early 2015.”

The DisplaySearch Quarterly Global TV Shipment and Forecast Report includes detailed information on panel and TV shipments, by region and size, for nearly 60 brands. The report also includes rolling 16-quarter forecasts, TV cost/price forecasts and design wins. If you need further information or assistance, please contact DisplaySearch at 408-418-1900 or sales@displaysearch.com or at the local DisplaySearch offices in China, Japan, Korea, Taiwan and the United Kingdom.