Flat Panel Display Price Erosion and Performance Improvements Drive Increased Demand, Expediting Industry Recovery

FPD Revenues Forecast to Reach a Record $120B in 2012

Sort Date: 10102012

SANTA CLARA, CALIF., October 10, 2012—After struggling in 2011 with a challenging market environment due to sliding demand and price erosion, 2012 marks a year of recovery for the flat panel display (FPD) industry. According to the latest NPD DisplaySearch Quarterly Worldwide FPD Shipment and Forecast Report, worldwide FPD revenues will reach $120 billion in 2012, up 8% from $111 billion in 2011, and exceeding 2010 revenues. Among the various FPD technologies, TFT LCD accounts for the majority of revenues at $107.7 billion in 2012, up from $99.4 billion in 2011. However, AMOLED displays once again showed the strongest Y/Y growth, as manufacturing capacity and market players continue to expand. However, with the exception of LCOS (liquid crystal on silicon, a form of microdisplay) all other display technologies, including plasma and passive matrix forms of LCD and OLED, are declining in 2012. In a sharp reversal, AMEPD (active matrix electrophoretic display), which is used in monochrome e-readers, swung from strong growth in 2011 to even stronger decline in 2012, due to competition from TFT LCD-based tablet PCs.

Table 1: 2010-2012 Worldwide FPD Revenues by Technology

Master
Technology

2010

2011

2012

2011 Y/Y
Growth

2012 Y/Y
Growth

TFT LCD

$105.9

$99.4

$107.7

-6%

8%

AMOLED

$1.2

$3.5

$6.5

183%

84%

PDP

$4.9

$4.4

$3.4

-11%

-23%

PMLCD

$1.7

$1.2

$0.9

-26%

-32%

CRT

$1.1

$0.7

$0.4

-35%

-38%

AMEPD

$0.7

$1.0

$0.4

43%

-58%

PMOLED

$0.3

$0.3

$0.3

5%

-2%

LCOS

$0.1

$0.1

$0.2

9%

6%

DLP

$0.2

$0.1

$0.1

-8%

-9%

VFD

$0.2

$0.1

$0.1

-19%

-16%

Total

$116

$111

$120

-5%

8%

Source: Quarterly Worldwide FPD Shipment and Forecast Report

The FPD industry struggled in 2011, as revenues fell 5% Y/Y to $111 billion, due to price erosion in TFT LCD panels, especially for TV applications. The 2011 decline in FPD revenues was only the second time in the history of the industry, and was also notable for the fact that the absolute value of TFT LCD revenues fell below $100 billion. The forecast revenue increase of 8% in 2012 is based on several factors, including increasing average sizes and shipments of LCD TVs, higher prices for high-resolution mobile displays for applications such as smart phones and tablet PCs, strong unit growth of tablet PCs, expansion of AMOLED shipments and applications, thin and light ultra-slim notebook PC panels, emerging 4K×2K LCD TVs, and growth of demand from applications including games, car navigation systems, and digital signage.

“There are still concerns for the outlook of the FPD industry, as high levels of saturation have been attained in several major markets,” commented David Hsieh, Vice President NPD DisplaySearch. “However, the supply chain has found ways to increase the value proposition of FPDs by focusing on technology enhancements: higher resolution for mobile devices, larger screen sizes, thinner and lighter versions for mobile PCs, wide viewing angle performance, and other functions such as touch screens,” noted Hsieh.

“While the industry faces challenges in traditional applications such as plasma TVs and mainstream sizes of LCD TVs and desktop monitors, the addition of new features and lower prices are driving growth of applications such as tablet PCs and smartphones,“ Hsieh added. “We expect 2013 to be a good year for the FPD industry, with revenue increasing, as TFT LCD prices recover and AMOLED demand grows.”

The NPD DisplaySearch Quarterly Worldwide FPD Shipment and Forecast Report covers quarterly worldwide shipments of all major flat panel applications. With more than 140 FPD producers across 10+ countries, this report analyzes historical shipments and forecast projections to provide some of the most detailed information and insights available.

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 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 or visit http://www.npd.com/ and http://www.npdgroupblog.com/. Follow us on Twitter at @npdtech and @npdgroup.

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