Flat Panel Display Market to Reach $35.7 Billion by 2005
The AMLCD conversion has affected the laptop computer display market, in particular. Revenues are slated to grow 14.2% per year, rising from $6.7 billion in 1998 to $16.9 billion in 2005. Despite falling prices, cost is still an inhibiting factor, however, and will be a focus of manufacturers in upcoming years.
Pushed by activity in the Pacific Rim, the monitor market will increase from the 1998 figure of $1.94 billion to reach $12.45 billion by the end of the forecast period. CRT technology is still an entrenched competitor, however, especially while large-scale flat panel displays are still more difficult to manufacture.
In the television market, PDP technology dominates, to be supplanted near the end of the forecast period by field-emission display technology. The market size is far more modest than the applications above, expected to rise 39.5% annually to reach $911.1 million in 2005, up from the $88.8 million logged in 1998.
The FPD markets for portable communications devices and automotive applications will reach $3.0 billion and $1.4 billion, respectively.
The majority of FPD manufacturers are located in the Pacific Rim. The markets that manufacturers from non-Pacific Rim regions participate in are primarily the military/aerospace and other niche industries. Manufacturers from Japan are noticing some new players entering the market from South Korea, and view future competition from this area as a major threat. To reduce some of this market competition, Japanese companies are participating in technology exchanges with manufacturers in Taiwan.
High prices for FPDs are the number one challenge facing the FPD market. CRT manufacturers view FPDs as a serious threat, and they continue to lower the price for their products. Several FPD manufacturers have strategic alliances in place. The purpose of these alliances is to lower the amount of resources spent on research and development (R&D). With fewer resources being spent, manufacturers are able to increase profit margins and develop new products faster. FPD manufacturers are hoping these applications will help conquer the price challenge in the market.
Although the FPD market is plagued with low profit margins, several FPD manufacturers believe this market will produce robust profits once the price challenge is overcome. New and emerging applications in the electronics market are expected to be based on FPD technology, and are projected to make the FPD industry a more profitable market in the future.
For more information, contact Cara Shevlin at Frost & Sullivan, (210) 348-1018.