DisplaySearch: Flatscreen sales forecast for 2009-2010 down, but still expected to grow
New research shows alternate markets such as digital signage and public displays could boost falling screen sales and production.
January 22, 2009
AUSTIN, Texas — With 2008 sales of flat panel TVs behind expectations, alternate markets for larger-format flat-panel displays like commercial-use advertising and communication are starting to pique display manufacturer interests again. This growing market segment is poised for growth despite the economically challenging climate facing the world in 2009 and 2010.
Unit volume for LCD and plasma displays used for public display applications rose 13 percent year-on-year worldwide, according to the DisplaySearch Q4'08 Quarterly FPD Public Display Shipment and Forecast Report. Growth of 44 percent is forecast for 2009, which is revised down from previous forecasts. Lower-priced commercial-grade products, as well as higher-grade consumer products, will help the lower the costs of digital signage deployments, driving high unit growth rates.
"Public display installations are long-term infrastructure projects, and the implementation decisions were made long ago. Current projects will continue to move forward with implementation in the near term, but at a marginally slower pace," noted Chris Connery, vice president of PC and Large Format Commercial Displays at DisplaySearch. "In particular, deployments of commercial flat panel products across the globe in mass-transit and quick service restaurant markets continue on course for 2009 and 2010."
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Figure 1: 26-inch+ Large-Format FPD (LCD and Plasma) Shipments for Commercial Public Display Applications Source: DisplaySearch Q4'08 Quarterly FPD Public Display Shipment and Forecast Report |
As the worldwide economy shifts from consumer to business spending, many advertisers have had their ad dollars cut severely, and are looking to target their message to their new core audience, the B2B buyer. With more business being done locally and more professionals seeking alternate means of transportation to save money, mass transit is becoming more attractive, especially in major metropolitan areas. Dynamic digital displays on rail platforms and other transportation hubs allow advertisers to focus on business professionals without having to rely on mass-media to reach captive audiences.
Conversely, consumers are staying close to home and opting to go to the movies rather than on vacation. This trend is leading many movie theaters to overhaul their signage with electronic menu boards, dual-function electronic displays that can tie into POS systems to help concessionaires promote what is readily available in stock, while allowing advertisements for unrelated products.
In terms of technology growth, both LCD and plasma are set to see year-on-year growth in deployments in commercial spaces. However, production investments in LCD technology and its cost competitiveness against plasma, especially in key 32- to 42-inch sizes, will allow LCD to continue to outpace plasma-based solutions. For larger sizes, however, the battle continues, as plasma has a cost advantage, but new thin bezel LCD displays allow for almost seamless video walls.
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Figure 2: Large-Format Commercial Public Display Forecasts by Technology Type Source: DisplaySearch Q4'08 Quarterly FPD Public Display Shipment and Forecast Report |