Livin' large: iSuppli forecasts 17% shipment growth for large LCD panels
Olympics-related demand expected to prop up shipments and revenue through the summer.
By Matthew Miller, Editor-in-Chief, EDN.com -- EDN, May 23, 2008
Market researcher iSuppli today forecast that large-sized LCD panels—those 10 in. or larger diagonally—will rack up 17.7% unit-shipment growth and 19.9% revenue growth in 2008 despite prevailing economic conditions and a glut that arose in November 2007 and persisted into the first quarter.
The company credits the upcoming Beijing Olympics for elevating demand and prompting buyers to maintain high inventory levels. Nonetheless, the rate of growth in both shipments and revenue will be much lower than in 2007.
Specifically, iSuppli expects shipments in 2008 to reach 458.9 million units, up 17.7% from 389.8 million in 2007. Compare that with 38.9 percent growth in 2007. In dollar terms, the market will expand to $88.9 billion in 2008, up 19.9% from $74.1 billion in 2007, according to the company. Why is revenue growing more quickly than unit shipments in 2008? Average selling prices for large LCDs have not ratcheted down, thanks to supply constraints, the market researcher reports.
By 2012, the market is expected to reach 737.6 million units, for a 2007 through 2012 CAGR (compound annual growth rate) of 13.6%. iSuppli expects revenue to reach $120.7 billion in 2012, for a CAGR of 10.2% from 2007's $74.1 billion.
Overall, suppliers will be plowing $17 billion into capacity expansion at their fabs in 2008, according to iSuppli.
