Strong global TV market props up large-area display market



| 13 August 2015

Despite IT panel-makers suffering from poor demand and excess inventory in 2014, aggressive procurement by global TV brands have kept TV panel demand high in Q1 2015 says research from IHS.

Large Area TFT LCD 1H15 resultIn its regular monitor of the global IT market, the analyst calculated that overall large-area TFT LCD unit shipments in the first half (H1) of 2015 fell 2% year-over-year to reach 340 million units. Comparing sectors, the Large Area Display Market Tracker also found that display shipments for tablet PCs fell 17%, notebook PC displays declined 6%, and PC monitor displays fell 8%.

By stark contrast LCD TV panel unit shipments increased by 11% with large-area TFT LCD shipments in terms of area growing 8% year-over-year, to reach 77 million square metres in the first half of 2015. TV panels comprised three-quarters (77%) of all TFT LCD area shipments, but only 39% of unit shipments.

Yet TV panel prices were high in H1 2015 and, as a result said IHS, TV brands suffered lower-than-expected TV sell-in, meaning that TV makers were likely higher inventories.

Such a decrease in TV panel demand, will likely weigh on TV panel prices in the second half of 2015, suggested Yoonsung Chung, director of large area display research for IHS Technology. "IT panel-makers suffered from poor demand and excess inventory from last year, while aggressive procurement by global TV brands kept TV panel demand high," Chung noted. "Actual TV sell-in over the first half of this year is still lower than expected, however, due to frozen demand caused by global currency exchange issues."