Flat-panel TV shipments to remain flat

DetailsMichelle Clancy | 29 July 2015

Led by declining thin-film-transistor LCD (TFT LCD) revenues, the global flat panel display industry revenue is forecast to fall 2%, from $131.4 billion in 2014 to $129 billion in 2015.

105 inch CURVED UHD Tcober pic 2VAccording to research firm IHS, dwindling TFT LCD display revenues, declining panel demand in the PC sector, along with ongoing panel-price erosion are the primary reasons for overall FPD revenue declines this year.

After growth last year, global TFT LCD display revenue is expected to decline 3%, from $120 billion in 2014 to $115.8 billion this year. However, IHS expects a return to TFT LCD market revenue growth in 2016. Plasma, cathode-ray tube (CRT), passive-matrix liquid crystal display (LCD) and electronic paper display (EPD) are also facing revenue declines, as some technologies become obsolete and others lack new applications. Organic light-emitting diode (OLED) is the only display technology expected to grow in 2015.

TFT LCD display revenues grew 5% last year, from $114.4 billion to $120 billion, due mainly to strong growth in LCD TV panel shipments and higher panel prices, IHS said.

"Panel prices are eroding for several reasons, including the swing in LCD TV panel inventory from limited supply to over-supply, which began in the second quarter of this year," said David Hsieh, senior director of display research for IHS. "Other reasons include falling demand in the PC sector, and panel-capacity expansion pressure on smartphone displays, especially in LTPS panels. The entire FPD supply chain now must shift focus from growth to cost reduction, in order to maintain profitability."

Active-matrix OLED (AMOLED) display revenues are projected to reach $11.8 billion in 2015, up 36% from 2014. Passive-matrix OLED (PMOLED) revenues are projected to reach $450 million this year, up 22% from last year.

"AMOLED growth is based on several factors, including soaring smartphone OLED display shipments, growth in OLED TV panel shipments, the expansion of OLED into tablet PCs and increased use in wearable devices, like Apple Watch. Flexible OLED is a key feature driving AMOLED revenues, especially given its higher ASP, attractive features and great value," Hsieh said.