Increasing Diversity to Add Additional Growth in Tablet PC Market

As New OS and Display Technologies Come Into the Market, Tablet PC Shipments to Grow More than Fivefold from 2012 to 2017

Sort Date: 05032012

Santa Clara, Calif., May 3, 2012—Shipments of tablet PCs are expected to grow from 81.6 million units in 2011 to 424.9 million units by 2017, according to the latest NPD DisplaySearch Tablet Quarterly report. The forecast for 2013 shipments has increased from 168.9 million to 184.2 million. This forecast estimates that in 2016 more tablet PCs will be shipped than notebook PCs. A growing diversity of operating systems is driving the increase in demand for tablets, as well as rapidly evolving features. At the same time, the capacity of component manufacturing is being increased to meet new market demand.

“So far in this relatively young product category, the tablet PC market has been dominated by Apple and has tended to include a number of competing products that are similarly configured to the iPad,” said Richard Shim, NPD DisplaySearch Senior Analyst. “However, as the market matures and competitors become better attuned to consumer preferences and find opportunities to break new ground, we expect the landscape to change dramatically, giving consumers more choices, which will drive demand for more devices.”

The industry has already witnessed some diversification in the market with the early success of Amazon’s Kindle Fire, with its “razor/razor blade model” of low-priced device predicated on content purchases. NPD DisplaySearch also expects increased investments in the tablet supply chain—amidst a lull in the growth of other device categories—to lead to more opportunities for new technologies to challenge incumbents.

NPD DisplaySearch expects an increase in investments to boost shipment growth in mature markets as retailers, brands, and consumers experiment with emerging tablet opportunities.

Figure 1: Worldwide Tablet PC Emerging and Mature Market Shipment Forecast

Source: Q1’12 NPD DisplaySearch Tablet Quarterly report

A key area where there is room for differentiation is operating systems. NPD DisplaySearch expects three operating systems to establish significant share in the market: Apple iOS, Google Android, and Microsoft Windows RT. The iOS operating system has been dominant in tablet PCs, but it is expected to lose share, from 72.1% in 2012 to 50.9% in 2017, as Android increases from 22.5% 2012 to 40.5% over the same period. Meanwhile, share for Windows RT is also expected to grow, but from a very small base of 1.5% in 2012 to 7.5% in 2017.

In terms of component production, many display manufacturers are transitioning tablet panel production to larger plants, including Gen 6 and Gen 8, which will lead to greater capacity for tablet displays, as well as lower prices. In addition, the share of AMOLED displays in tablets is forecast to increase from 3% in 2012 to 30% by 2017.

Figure 2: Worldwide Tablet PC Operating System Forecast

Source: Q1’12 NPD DisplaySearch Tablet Quarterly report

NPD DisplaySearch’s Tablet Quarterly report tracks quarterly changes in tablet PC products and strategies, and forecasts the impact of those changes on the market. It covers the changing landscape of screen sizes, features that are expected to be included and excluded in future tablets, and operating systems.

For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact@displaysearch.com or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan.

About NPD DisplaySearch
Since 1996, NPD DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. NPD DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. In collaboration with The NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 2,000 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, entertainment, fashion, food, home and office, sports, technology, toys, video games, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at @npdgroup.

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