Large-area display shipments will fall 5% YoY in 2015, says IHS – but the news is not all bad. While unit shipments will decline to 682 million units, large-area TFT-LCD shipment area will grow 5%, helping to offset the fall.
Total unit shipments are being driven down by a combination of factors. As well as global currency issues, which had raised import prices for displays in ‘most’ regions, demand for LFDs is slowing. IHS says that combined tablet, notebook PC and PC monitor shipments will fall 12%, while TFT-LCD TV panel shipments will climb 7%.
In line with the above trend, shipment area for PC monitors, notebook and tablet displays will fall 10% YoY, while TV panel area is forecast to grow 9%. This area increase is leading to growth in the overall TFT-LCD panel market, because TV displays make up 78% of total panel area.
“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. Chinese panel makers have been increase the number of G8 fabs for some time, and are producing more panels to keep utilisation high. This led to sharp TV panel price erosion in the second half of 2015.
Despite the fall, TV panel prices are likely to continue to decline next year, due to remaining inventory issues. This price erosion will lower the end cost of 55″+ TVs, which could stimulate consumer demand.
| Large-Area TFT LCD Unit Shipments vs. Area Shipments, 2014 – 2015 | |||
|---|---|---|---|
| Shipments | 2014 | 2015 (F) | YoY Change |
| Units (Millions) | 720 | 682 | -5.0% |
| Area (Millions of m²) | 151 | 159 | 5.0% |
| Source: IHS | |||
