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Year-on-year large-area display shipments are forecast to fall 5 per cent, reaching 682 million units in 2015. This decline in unit shipments will be offset by an increase in large area thin-film transistor (TFT) liquid crystal display (LCD) shipment area, which is expected to grow 5 per cent this year, according to IHS.
In addition to global currency issues that resulted in higher import prices for displays in most regions, slowing demand for information technology (IT) panels is driving down total unit shipments of large area TFT LCD displays. Combined year-over-year unit shipments for tablets, notebook PC and PC monitors will decline 12 per cent. At the same time, TFT LCD TV panel unit shipments will increase by just 7 per cent this year.
Similar to the unit-shipment trend, combined shipment area for displays used in PCs, notebooks and tablets is expected to decline 10 percent in 2015; however, year-over-year area shipments of TV panels is forecast to grow 9 per cent this year. Increasing TV panel area shipment is leading to growth in the overall TFT LCD panel market, because TV displays comprise the vast majority (78 per cent) of total panel area, according to the latest IHS Large Area Display Market Tracker.“Maintaining television panel production is the most important factor in maintaining the display industry’s fab utilisation,” said Yoonsung Chung, director of large area display research for IHS Technology. “Chinese panel manufacturers have focused on increasing Gen 8 fabs for some time now. To consume this added capacity, TV panel makers must produce more panels, which means the industry could end up adding excess panels to inventory, leading to sharp TV panel price erosion in the second half of this year.”
Although the average selling price (ASP) for TV panels has already dropped dramatically, as inventory issues remain, prices will likely continue to decline in the coming year. “Panel price erosion will lower the cost of 55-inch-and-larger TVs, which could end up stimulating consumer demand for larger televisions,” Chung said.