FPD Area Demand Grows Rapidly: IHS

Worldwide display panel shipments for all flat panel display (FPD) applications grew 9 percent  from the previous year, or YoY (year-on-year) to  168.9 million square meters in 2014; and total FPD display area demand is expected to grow at a compound annual growth rate (CAGR) of 5 percent from 2012, reaching 223.6 million square meters by 2020, according to IHS.

The global source of critical information and insight said that once focused on unit growth, the entire global FPD industry is now shifting to focus on area-demand growth.

“The trend toward bigger displays continued in the flat panel display industry in 2014,” said Yoshio Tamura, director of display research for IHS Technology. “There were four major driving forces leading to a strong upgrade of the average FPD display sizes: consumer demand for larger LCD TVs, soaring demand for 5"+ smartphones, larger automotive display screens, and larger tablet PCs.”

Annual growth by area for major FPD applications in 2015 is forecast to reach 5%, which is down from 9% in 2014. Slowing growth is mainly caused by the maturity of some FPD applications, and a slowdown in the trend toward larger size screens for LCD TVs and smart handheld devices, IHS said.

“New TV sizes launched by LCD and OLED panel makers mean that consumers now have more chances to trade up to larger sizes,” Tamura said. “For smartphones, especially in the Chinese market and developing countries, bigger screens have been triggered by higher resolution requirements, longer battery life, and shifts in user behavior.”

Apple, HP, Lenovo, Acer, ASUS, and other mobile PC brands have begun to launch products with larger screens. New operating systems (OS) and convertible form factors are leading to displays growing from 10- to 12.9-inch in 2015, which will also add to FPD area demand, the research firm said.

For each FPD product category, IHS noted several reasons for the increase in total FPD area, including the following:

• LCD TV – 4K, 8K, ultra-slim type, slim bezel, better picture quality by wider color gamut and dynamic contrast ratio, new sizes launched by the panel makers, new smart TV platform
• Smartphone – higher resolution, slim design, bezel-less design, abundant ecosystem, component integration
• Mobile PC – higher resolution, better screen performance with the introduction of OLED, entry into the commercial and educational market
• Automotive – better user interface and touch performance, growing numbers of hybrid energy and electronic cars equipped with a larger and better screens, full dashboard digitalization, demand for bigger central information displays (CIDs), and the introduction of advanced driver assistance systems (ADAS) for smart cars