Report: Flat Panel Display Revenue to Increase in 2017
Global flat panel display revenues are set to reverse two years of decline with a 9.3% year-on-year increase in 2017, according to IHS Markit.
Revenues are forecast to hit $110 billion (approximately €103 billion) according to the research and analysis company’s ‘Display Long-Term Demand Forecast Tracker’ report.
Ricky Park, director of Display Research at IHS Markit, said: “While it would be a 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 report also suggests that year-on-year growth rate of the flat panel display market by unit demand will remain low at 0.3% in 2017. In contrast, display area demand is expected to grow 6.6% over the same period.
IHS pinpoints the main factor driving revenue growth as a rapid rebound in panel prices in 2016. The price of 32-in open cell that had dropped 41% in 2015 due to oversupply in the second half of the year has started to rebound in April before increasing 36% in October compared to December last year.
The rebound in panel prices is attributed to supply-related issues such as restructuring of liquid crystal display (LCD) display fabs, production halts, and deteriorating yields from the maximisation of production efficiency.
Revenue growth is also being pushed by an increased supply of premium products that has raised the overall ASP (average selling price).