Flat Panel Display Area Demand Growing Rapidly, According to IHS

Date: 2015-07-15

Increasing sizes of display panels for TVs, smartphones, mobile PCs, and automotive displays are driving increases in total flat-panel-display area demand growth

EL SEGUNDO, Calif. (January 29, 2015)—Once focused on unit growth, the entire global flat-panel display (FPD) industry is now shifting to focus on area-demand growth. According to IHS (NYSE: IHS), the leading global source of critical information and insight, display panel shipments for all FPD applications grew 9% Y/Y to reach 168.9 million square meters in 2014. Total FPD display area demand is expected to grow at a compound annual growth rate (CAGR) of 5% from 2012, reaching 223.6 million square meters in 2020.

Figure 1: Flat Panel Display Demand and Y/Y Growth by Area (in millions of square meters)


Source: Quarterly Worldwide FPD Shipment and Forecast Report

“The trend toward bigger displays continued in the flat panel display industry in 2014,” said Yoshio Tamura, director of display research for IHS Technology, formerly with DisplaySearch. “There were four major driving forces leading to a strong upgrade of the average FPD display sizes: consumer demand for larger LCD TVs, soaring demand for 5"+ smartphones, larger automotive display screens, and larger tablet PCs.”

Annual growth by area for major FPD applications in 2015 is forecast to reach 5%, which is down from 9% in 2014. Slowing growth is mainly caused by the maturity of some FPD applications, and a slowdown in the trend toward larger size screens for LCD TVs and smart handheld devices.

Figure 2: Major FPD Applications Y/Y Growth in Area


Source: Quarterly Worldwide FPD Shipment and Forecast Report

“New TV sizes launched by LCD and OLED panel makers mean that consumers now have more chances to trade up to larger sizes,” Tamura said. “For smartphones, especially in the Chinese market and developing countries, bigger screens have been triggered by higher resolution requirements, longer battery life, and shifts in user behavior.”

Apple, HP, Lenovo, Acer, ASUS, and other mobile PC brands have begun to launch products with larger screens. New operating systems and convertible form factors are leading to displays growing from 10" to 12.9" in 2015, which will also add to FPD area demand.

For each FPD product category, IHS noted several reasons for the increase in total FPD area, including the following:

  • LCD TV – 4K, 8K, ultra-slim type, slim bezel, better picture quality by wider color gamut and dynamic contrast ratio, new sizes launched by the panel makers, new smart TV platform
  • Smartphone – higher resolution, slim design, bezel-less design, abundant ecosystem, component integration
  • Mobile PC – higher resolution, better screen performance with the introduction of OLED, entry into the commercial and educational market
  • Automotive – better user interface and touch performance, growing numbers of hybrid energy and electronic cars equipped with a larger and better screens, full dashboard digitalization, demand for bigger central information displays (CIDs), and the introduction of advanced driver assistance systems (ADAS) for smart cars

The Quarterly Worldwide FPD Shipment and Forecast Report covers worldwide shipments and forecasts for all major FPD applications, including details from more than 140 FPD producers, covering more than 10 countries. For more information about this report, call 888.436.7673 or 516.625.2452.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.


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From: http://www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/150129_flat_panel_display_area_demand_growing_rapidly.asp