Flat-panel display industry revenues are expected to fall by 2% this year to US$129 billion (€117 billion) as falling LCD display revenues, declining demand in the PC sector and price erosion take their toll, according to research by IHS.
After growth last year, global TFT LCD display revenue is expected to decline 3%, from US$120 billion in 2014 to US$115.8 billion this year. However, IHS expects a return to TFT LCD market revenue growth of about 1% in 2016, reaching US$117.4 billion, thanks in part to the growing popularity of 4K UHD TV.
Plasma, cathode-ray tube, passive-matrix liquid crystal display and electronic paper display are also facing revenue declines, as some technologies become obsolete and others lack new applications.
Organic light-emitting diode is the only display technology expected to grow in 2015, according to the research group. Active Matrix OLED revenues are expected to grow 36% this year to US$11.8 billion, while Passive Matrix OLED sales will grow 22% to US$450 million.
“Panel prices are eroding for several reasons, including the swing in LCD TV panel inventory from limited supply to over-supply, which began in the second quarter of this year,” said David Hsieh, senior director of display research for IHS. “Other reasons include falling demand in the PC sector, and panel-capacity expansion pressure on smartphone displays, especially in LTPS panels. The entire FPD supply chain now must shift focus from growth to cost reduction, in order to maintain profitability.”
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