New landmark for 4K sales

Worldwide 4K TV shipments are expected to exceed 30 million units this year.

According to a report by Futuresource Consulting, this will represent an increase of 147% despite an overall fall of 2% in TV sales.

Global TV sales rose in 2014 by 3% to reach 235 million units, with
trade value up to $94 billion. However, the TV market landscape remained varied across the globe, with Latin America and Europe enjoying growth, the latter by 3%, and APAC a reduction despite still account for the most shipments (37%). With saturation in many countries in APAC relatively low, growth is expected to return in coming years.

Looking specifically at 2015, Futuresource expects global trade to fall by 3% to $91 billion, due mainly to economic problems in China and Russia, as well as in many European markets. It nevertheless adds that the decline will not last, with strong growth in curved screens predicted this year, helped by growth in the 4K market, and smart TV continuing to increase its market share, though not at the pace previously anticipated.

Jack Wetherill, senior market analyst, Futuresource Consulting, said: “Although we expect to see a decrease in worldwide shipments in 2015, Futuresource expects the TV market to recover well in the longer term.

“In the coming years Futuresource believes that replacement demand will increase with sets bought at the start of flat panel boom being upgraded. Also, the shift in consumer preference to larger screen sizes will help the performance of 4K sets.”

11.6 million 4k TV sets expected to have been shipped in 2014

UK — Futuresource Consulting has announced its latest 4K report, which will review the progress in the broadcast, video, and display industries.

With the 4K industry gathering pace, a sustained flow of 4k content will be critical to the long term success of 4k. While disc playback of 4k content will not be a possibility until late 2015, OTT (Over the Top) video services are driving early roll-out of 4k video services with several now available in the market. Several further propositions are set for launch in 2015/6 from both standalone providers and traditional Pay-TV platforms.

As with HD and more recently 3D, 4k consumer technology is ahead of the rest of the content chain and the consumer electronics industry is marketing 4k capable TVs and creating an audience.

4k sets are expected to ship 11.6 million units in 2014, up 699% year on year, with China accounting for over 70% of worldwide demand (Vs 84% in 2013). By 2018 100 million sets are forecast to ship per annum, when ownership will exceed 20% in leading markets. Falling premiums and 4k in smaller screen sizes will drive 4k adoption, while consumers will want to future-proof for 4k content when it becomes available, upscaling will help consumers justify their purchasing decision in the short term.

“We are seeing several 4K video services now available in the market, driven by over-the-top (OTT) video services, and we are beginning to see signs that broadcasters support will be forthcoming,” commented Sarah Carroll, Director of Sales & Marketing, Futuresource Consulting. “However, with 8K on the horizon, there is speculation as to whether the window for 4K will be short-lived.”

With the backing of the consumer electronics, television and motion picture industries, Futuresource believes that there is a positive commercial scenario for consumer 4k, although realistically this is likely to take at least 3 to 4 years to develop.

This latest report will uncover the roadmap for 4K broadcast and the barriers and challenges to 4K delivery via broadcast and IP. It will look at the players leading the charge for 4K delivery online, as well as outlining the regions, which are driving 4K shipments. It will also look at the current and future outlook for Blu-ray players and the key 4K developments in digital cinema. Another area covered is the industry and consumer confusion around 4K UHD, and crucially whether 8K will surpass 4K.

The Futuresource 4K report will also cover global statistics and five-year forecasts for 4K products and content, as well as household penetration and anticipated market value. It is being compiled following a programme of dedicated research amongst TV and display vendors, CE retailers, broadcasters, online service providers, technology groups and other stakeholders.

2013 4K TV panel shipments reach one million units in August

According to the large-sized panel shipment survey by WitsView, the display research division of the global market intelligence provider TrendForce, the large-sized panel shipment for August 2013 attained 70.11 million units, rising 11% MoM.

The promotional restocking demand for Oct 1st holidays in China emerged and some brands prepared for the 2H’13 peak season in Europe and the U.S., supporting the TV panel shipment, and the August LCD TV panel shipment grew 5.8% to 19.31 million units. The monitor panel shipment climbed 5.3% MoM to 14.10 million units as the downstream SI makers saw rising shipment demands.

The 10.1”-and-above NB panel shipment reached 16.56 million units, growing 13.4% MoM, as the shipment was supported by brand’ demand for new models carrying Haswell chips and the basis period in July was low. The tablet panel shipment reached 20.12 million units, rising 19% MoM, as the demands for Apple, Google’s Nexus 7, and Samsung’s tablets remained strong, and white-box makers launched new higher-resolution models.

In the 2013 Germany IFA that has just ended, besides the curved OLED TV that attracts the market’s eye, the 4K TVs are hot products intensively displayed by all brands, and medias’ massive coverage and reports become the best publicity for the upcoming 4K TV campaign war during the Oct. 1st holidays in China. In H1’13, Japanese brands such as Sony and Toshiba led to showcase the 4K TVs of 55”, 65”, and 84”, while Korean and Chinese brands revealed the 4K TVs of 55”and above. The 39” 4K TV priced at only RMB 3,333 by KONKA has sparked talks in the industry, and other five major Chinese brands will also sell 4K TVs of 39”, 42”, and 50”, suggesting Chinese brands are touting a 4K TV lineup of large, medium, and small sizes to fully boost the Oct. 1st sales.

WitsView’s research manager Jeffy Chen indicates that as Chinese brands held a strongly growing demand for 4K TVs, the 4K TV panel shipment jumped to 0.38 million units in one single month, rising 47% from the previous month. As a result, through the end of August, the 4K2K TV panel shipment accumulated to 1.22 million units, officially surpassing the benchmark of one million units. Among the panel makers, Innolux had an aggressive strategic deployment on 4K TV panel products, enjoying a 55% market share, and when combined with AUO, Taiwanese panel makers have successfully gained nearly 80% of the market.

The Oct 1st promotional period will be a crucial moment to see how Chinese consumers accept the 4K TVs. Looking ahead to 2014, the three Gen 8.5 fabs of BOE, Samsung, and LGD will be operational in Hefei, Suzhou, and Guangzhou, and how to secure a place in the world’s largest LCD TV market will be the key to efficiently digest the new capacity. If the 4K TV segment is successfully expanded in China, in 2014, Korean and Chinese panel makers will inevitably attack the under-55”4K TV panel market, including 48”/49” and 40”/42”. The war for the entire series of 4K panels will be formally declared in 2014.

Chart 1: TFT-LCD Panel Shipment in Aug-13 (K units)