Demand for larger TVs drives 8% panel area growth, says IHS Markit

January 24, 2017 // By Julien Happich
Demand for TV panels in terms of area is forecast to reach 143 million square meters in 2017, up 8 percent from 2016, contributing to a 6 percent growth in the overall display market, according to market research firm IHS Markit.

“Owing to the increase in average TV screen sizes demanded by consumers, TV panel makers will enjoy a high growth in display area demand despite sluggish growth in terms of quantity,” said Alex Kang, senior analyst of display research for IHS Markit.

The average TV panel size exceeded 40 inches in 2016 for the first time ever, and it will increase further by 1.3 inches to reach 42.6 inches in 2017. “As consumers show a preference for larger display models and as set makers promote products with higher profitability, the average size of TV panels should continue to increase.”

TV panels accounted for about 70 percent of the entire display demand in terms of area in 2016, shows IHS Markit's Display Long-Term Demand Forecast Tracker , while IT panels, which include those for desktop monitors, notebooks and tablet PCs, made up 18 percent.

In contrast, IT panel demand is expected to remain flat in 2017, while mobile phone display demand is expected to grow 10 percent to 14 million square meters during the same period.

“Although the increase in the average smartphone screen size is propelling area demand for mobile phone displays, its impact to the entire display market should be minimal as mobile phones make up only 7 percent of the entire display market,” Kang said.

With the US representing a large chunk of the world wide TV market, and following newly elected US president Trump's declarations on imposing new taxes for goods made outside the US, several Asian display panel manufacturers could be investing in US-based manufacturing plants.

CTimes reported this week that Hon Hai Precision Industry Co. Ltd. Chairman Terry Gou is willing to bring investment to the United States with the LCD panel industry as its top priority, since the US lacks of such industry. Pennsylvania was hinted as a sweet spot for investments, due to its convenient land and utilities. He was quoted saying Sharp