Chinese TV Set Makers Aggressive With 4K TV Marketing, According to NPD DisplaySearch

Global CE Brands Take a More Conservative Approach, Waiting on Broadcast Standards

Sort Date: 10212013

Santa Clara, California, October 21, 2013—As TV brands look to revitalize their businesses, 4K TV strategies are being planned, and the most aggressive ones are coming from Chinese set makers. According to the NPD DisplaySearch Quarterly Global TV Shipment and Forecast Report, 1.3 million 4K TV sets (defined as having 3840×2160 resolution) will ship globally in 2013, rising to 23 million in 2017, and Chinese set makers are looking to break out of their domestic market and challenge Samsung, LGE, Sony, Panasonic, and other 4K TV leaders on a global stage.

“4K TV is a completely different feature in China, compared to what it is in the rest of the world,” said Paul Gray, director of European TV research for NPD DisplaySearch. “In China, 4K TV sets have modest capabilities, start from smaller sizes, and are priced at relatively low premiums. By contrast 4K TV sets elsewhere in the world are very large, have relatively complex image processing, and have some degree of future-proofing.”

The 4K TV broadcast and content chain is at an early stage of development. As a result, global CE brands are biding their time with this new generation of products, because 4K TV broadcast standards – a key building block for growth – are missing, and programming is limited. Meanwhile, emerging standards, such as HDMI 2.0, are critical to the content chain. “It is quicker to design a TV, than it is to craft a broadcasting standard that will endure for at least a decade,” Gray said. “Once standards are ratified and broadcast services start to roll out, then global brands will accelerate and launch more mainstream products.”

Although the broadcast infrastructure for 4K TV is not in place, Chinese brands are already promoting 4K TV as a marketing feature to drive up sales among early adopters. With Chinese TV manufacturers positioning the 4K TV feature with a small price premium, NPD DisplaySearch analysts expect that China will figure disproportionately in shipments. “While 4K TV sets from China have made headlines, it is hard to be confident that these products will be capable of displaying all types of native 4K TV content, when it eventually arrives.” Gray said. “Even so, these early products are being positioned as a proof point that Chinese brands have mastered advanced technology and are poised to attack developed markets.”

Figure 1: 4K TV(3840×2160) TV Shipment Forecast

Source: NPD DisplaySearch Quarterly Global TV Shipment and Forecast Report

Between 2013 and 2017, China is expected to comprise over half of all global 4K TV shipments, due to the combination of lower price premiums and the availability of small sizes down to 39”. “Competitive pressure may indeed build in some regions, driving prices for Chinese brands down further, and stimulating growth; however, there has been a distinct reluctance by Korean and Japanese brands to chase Chinese pricing,” according to Gray.

Broadcasters are anxious to develop a future TV system that the industry can grow into. In particular, broadcasters take the view that 4K TVis about more than simply resolution, so any new system must also consider color, frame rate, and dynamic range. The Quarterly TV Design and Features Report examines the path that broadcasters are likely to take in releasing standards, with several steps likely in creating a 4K TV content ecosystem. The report concludes that 60 Hz video is considered a must by broadcasters, with expansions in color and dynamic range likely in the 2016 to 2018 timeframe. “While 4K TV is currently stealing some of the limelight from OLED, standards development could favor OLED technology in the longer-term and exploit some of its unique abilities,” Gray said.

The Quarterly Global TV Shipment and Forecast Report from NPD DisplaySearch includes detailed forecast information on 4K TV by region, technology, and screen size. The Quarterly TV Design and Features Report covers all 4K TV product ranges, forecasts, video processing, and broadcasting; plus, detailed information on other aspects of TV design such as smart TV, backlighting technology, OLED, and 3D. For more information about these reports, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan for more information.

About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing 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, 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 provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food/foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit http://www.npd.com/ and npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.

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