IHS: Flat Panel Revenues on the Up

The global flat panel display market looks set to recover after 2 consecutive years of decline, IHS Markit reports-- 2017 revenues are forecast to total $110 billion, a 9.3% increase.

4K Display“While it would be unrealistic to expect an increase in unit demand next year in view of an overall sluggish global economy outlook, market revenue for flat panel display can be expected to grow significantly following a rebound in panel prices along with an increased demand for premium display products,” the analyst remarks.

The 2017 Y-o-Y growth rate of the flat panel display market by unit demand is projected to remain low at 0.3%. On the other hand, display area demand is expected to grow by 6.6%, while market revenue is to grow 9.3% over the same period.

The factor behind such revenue growth is the rapid rebound in panel prices seen in 2016-- the price of a 32-inch open cell that dropped -41% in 2015 due to oversupply started rebounding in April 2016, before increasing by 36% in October compared to December 2015. The reason behind such rebound includes supply related issues such as the restructuring of LCD display fabs, production halts and deteriorating yields from the maximisation of production efficiency.

Such price increases affected smartphone, PC monitor and laptop display panels as well as TVs, and as a result all prices turned upwards from Q2.

Another revenue growth driver is an increased supply of premium products raising overall ASPs. Currently consumers show a preference for larger-size TVs, desktop monitors and tablets, and such devices require high-definition (and ultra high-definition) panels. Also in demand are AMOLED panels for smartphone use, and oxide and low-temperature poly silicon panels for notebooks and desktop monitors.

Go Flat Panel Display Revenues Forecast to Increase in 2017, IHS Markit Says