DisplaySearch Forecasts $3B Market for FPD Public Displays by 2009; PDPs Out-Ship LCDs 3 to 1 in Q2'05

DisplaySearch Forecasts $3B Market for FPD Public Displays by 2009; PDPs Out-Ship LCDs 3 to 1 in Q2'05

AUSTIN, TEXAS, December 1, 2005-DisplaySearch, an NPD Group Company and the worldwide leader in display market research, issued the first edition of its newest Quarterly Public Display Shipment and Forecast Report indicating that worldwide shipments of large flat-panel displays for non-TV applications reached a worldwide total of 87K units in Q2'05. While this number was slightly down from the Q1'05 worldwide total of 96.4K units, recent price reductions in both plasma (PDP) and large-format LCD (26"+) panels are forecast to accelerate this market to over 400K units for 2005, and double-digit unit Y/Y growth is forecast through 2009 to reach 1.8M units. Conservative estimates of the worldwide market show the total Compound Annual Growth (CARG) rate for PDPs used in such applications to be as much as 10% from 2004-2009 with LCDs forecast to have an even larger CARG of 82% from 2004 to 2009! , resulting in an overall explosive 36% CARG for the flat panel public display market.

With production gearing up for larger flat panel displays for the consumer TV market, the exploding Public Display market is benefiting from these economies of scale with similar displays used for non-TV applications such as Point of Sale Signage, Flight Information Displays, Electronic Menu Boards and even corporate conference room displays. The two most popular technologies for the out-of-home Public Display environment are LCDs and PDPs, both of which continue to push the technology envelope in size, resolution and price points. LCDs as large as 55" are now commercially available worldwide, while PDPs as large as 71" are now available for commercial applications with signs that these two technologies will both gain ground in this emerging space.

Q2'05 results show that the most popular size and technology for Public Display applications was the 40-43" PDPs with a 63.6% share; lower resolution ED versions of 42" PDPs had a 38.8% share alone. The 40-43" PDP category was followed by the 50" PDP size, which had a 12.3% share of the worldwide shipments of Public Displays in Q2'05. LCD based 40" Public Displays were the third best selling size and technology with an 8.0% share for the quarter. While PDP products currently rule the Public Display market place, large-format LCDs (26"+) have shown the greatest Q/Q shipment growth since Q2'04 with positive Q/Q growth in all quarters surveyed with the exception of Q2'05, with explosive growth projected to be reported for Q3'05.

Table 1: PDP and LCD Public Display Quarterly Growth Rates

*Projected

Street level pricing for Public Displays in the period dropped from a total Weighted Average of $3,616 in Q2'04 to $3,425 in Q2'05 with projections that on a weighted average basis pricing will fall as low as $3,032 once the results from Q3'05 are fully posted. These price reductions were driven by the significant decline in PDP pricing, especially in the 40-43" ED PDP category, which dropped 12.1% in Q4'04 into the sub-$2,299 range thus increasing unit volume shipments. Additionally, price reductions in the 40-42" LCD class of Public Displays helped accelerate sales, even though this technology is 1.5x more expensive than its nearest HD PDP competitor.

Table 2: PDP and LCD Public Display Historical Pricing Sequential Changes

*Projected

In the emerging area of LCD Public Displays, NEC had been the worldwide leader (operating under NEC-Mitsubishi prior to Q2'05 then under NEC Display Solutions thereafter) from Q3'04 through Q2'05 when it lost the lead to Samsung with 33.0% to NEC's 32.4% for the quarter. NEC is projected to again top the worldwide charts in Q3'05. NEC has consistently been the North American leader, currently enjoying the top NA position in the LCD category in Q2'05 with a 41.1% share.

Table 3: Q2'05 Worldwide Major Brand LCD Public Display Shares

Table 4: Q2'05 North American Major Brand LCD Public Display Shares

DisplaySearch's newest Quarterly Public Display Shipment and Forecast Report includes shipment and forecast data for both LCD and PDP-based FPD Public Displays quarterly through 2009 with historical shipments by brand, by size, by region for LCD Public Displays and historical PDP total WW shipments by size from Q2'04 through the present. This new report also provides cost forecasts of LCD and PDP modules used in Public Display environments as well as projected average street prices by size and by technology through 2009. This report is delivered in PowerPoint and includes enhanced Excel data tables. Please contact Arie Braun at DisplaySearch at 512-459-3126 or [email protected] for subscription information.

Register for US FPD by December 31 and save! DisplaySearch will also hold its 8th Annual DisplaySearch US FPD Conference at the beautiful Loews Coronado in San Diego on March 21-23, 2006. Save $200 by signing up as an attendee by December 31,2005. Sponsorships and exhibits are also available now! Please visit the official conference website at www.displaysearch.com/usfpd2006 or contact Kendra Smith at 512-459-3126 x107 or [email protected].

DisplaySearch, an NPD Group company, has a core team of 33 employees located in North America and Asia who produce a valued suite of market forecasts, technology assessments, surveys, studies and analyses. The company also organizes influential events worldwide. Headquartered in Austin, Texas, DisplaySearch has regional operations in Chicago, Hong Kong, Houston, Kyoto, San Diego, San Jose, Seoul, Shenzhen, Taipei and Tokyo, and the company is on the web at www.displaysearch.com.

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