PMA Research (PMA), the worldwide market information experts on large displays, recently released a Special Report on the effects of the COVID-19 health crisis on the Display Market, with comparisons to the 2009 Global Financial crisis, and what the display market recovery might look like post-pandemic.
There are some similarities between the 2009 global financial crisis and the economic impact due to the COVID-19 health crisis. The differences, however, are significant and mark this as a more serious situation.
The professional display market, which was almost exclusively projectors in 2008, suffered double-digit declines in 2008 and 2009. Recovery, particularly in the U.S., depended upon huge government stimulus packages directed at the K-12 education market. Consumer spending took even longer to recover as unemployment rates remained high for several years.
In 2008, professional flat panel displays accounted for less than 5% of the total FPD shipments. Consumer televisions and desktop monitors dominated this market. Recovery from the 2020 COVID-19 lockdown will look very different for the professional FPD business and will more likely mirror the projector trends from 2008-2010.
While there are some expected issues with supply, soft demand will be the greater problem. LCD panel prices have been in negative margin territory for several months with no room to lower LCD prices to drive more demand. Although cheaper projector prices could be appealing.
The tailwinds which helped to fuel a quicker recovery in the LCD market in 2009 are no longer relevant today. At that time consumer demand for upgrading televisions was high due to technology advancements such as flat screens, HD and digital broadcasting. Without the benefit of those tailwinds, a slower recovery could result after this crisis.
There are some areas within the LCD market that are showing strong demand. Desktop monitor sales have grown dramatically as companies equip employees to work from home and as people seek entertainment (gaming/streaming) while they stay at home.
Another bright spot is distance collaboration which has grown exponentially during this long shutdown. The ease and effectiveness of video conferenced brainstorming could propel more in-office solutions.
About PMA Research
PMA Research (PMA) specializes in worldwide market information for the projector industry, including detailed and comprehensive coverage of High-End Projectors, Mainstream Projectors, and Pico Projectors. With a series of quarterly projector shipment and forecast reports along with monthly sales tracking, PMA publishes data-driven insights for projector manufacturers, component suppliers, accessory companies and channel partners.
Expanded coverage of the display industry includes market information on U.S. Professional Large-Format Flat Panel Displays. PMA’s Flat Panel Tracking Reports offer timely sell-through data and analysis on unit sales, revenues and true volume-weighted selling prices of Professional Large-Format Flat Panel Displays sold by leading N. American dealers, systems integrators, and distributors.
PMA Research offers a comparative analysis for both Display product categories with their All-Displays Distributor Tracking Report. The All-Displays report compiles sell-through data and analysis on unit sales and true volume-weighted wholesale prices of Large-Format Flat Panel Displays and Projectors sold by leading Distributors in the United States. This report is valuable in that it combines flat panel and projector sell-through data into one report, making it easy to compare and analyze these different display product segments.
PMA Research was formerly Pacific Media Associates, which was established by Dr. William Coggshall. Dr. Coggshall was a co-founder of Dataquest (now part of Gartner) and helped start the syndicated high-tech market information business. PMA Research has offices in the United States, Europe, and Asia. The company’s US headquarters is located at 25852 Avenida Cabrillo, San Juan Capistrano, CA 92675. Phone: +1 (949) 493-4601. <http://www.pmaresearch.com> www.pmaresearch.com
