LCD Poised for Significant Growth

LCD market poised for strong growth
By James Carbone -- Purchasing, 5/22/2008 2:06:00 PM

The global large-sized liquid crystal display (LCD) market will expand to $88.9 billion in 2008, up about 20% from $74.1 billion in 2007. Large-size LCD panels measure 10 inches or longer diagonally.

Large-sized TFT-LCD panel revenue is expected to reach $120.7 billion in 2012, maintaining a compound annual growth rate of 10.2%, according to researcher iSuppli.. Televisions, notebook computers and desktop monitors are driving large-sized LCD market growth. Large-sized LCD panel unit shipments in 2008 are projected to rise to 458.9 million units, up 17.7% from 389.8 million in 2007. The large-sized LCD panel market is expected to reach 737.6 million units by 2012, expanding at a CAGR of 13.6% from 2007.

Despite the economic slowdown in the U.S shipments of large-sized LCD panels in the first quarter of 2008 declined by only 2.8% compared to the fourth quarter of 2007. Generally, the first quarter is seasonally slow, but this year there was strong than expected demand in March to offset negative growth in January and February, says iSuppli.

Most panel buyers are expecting the LCD market to be in tight supply in the second and third quarters due to slower capacity expansions in the first half of 2008. However, more capacity will be added in the second half. Panel suppliers are expected to spend about $17 billion in 2008 to increase their capacity at higher-generation fabs.