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PDP revenue to reach $10.2B in 2008

Posted: 14 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:PDP market? LCD TV? display market?

Despite the intense market competition with LCDs, global PDP revenue will reach its peak in 2008 with $10.2 billion because of increased production of 50-inch and larger sizes, according to iSuppli Corp.

The market research firm forecasts that global PDP revenue will rise to $8.6 billion in 2007, up 11.8 percent from $7.7 billion in 2006. After an 18.5 percent y-on-y growth in 2008, increased competition and continuous price pressure will cause a revenue contraction, declining to $8.7 billion by 2011.

Although PDP manufacturers are finding it increasingly difficult to keep pace with LCD in the consumer and business markets, falling ASPs allow PDPs to enjoy a growth phase in the consumer and business market.

According to the firm, declines in PDP ASPs are being driven by a number of factors, including increased competition that is forcing panel makers to reduce prices; larger PDP fab sizes that boost production efficiencies; improved manufacturing processes; declining costs for display materials and escalating competition from LCD and microdisplay-based rear-projection technologies.

The market appears more attractive from a unit perspective, with shipments reaching 23.6 million units by 2011, rising at a CAGR of 18.6 percent from 10 million in 2006.

Market rebound
While Matsushita maintained its leadership position in panel production in the Q1, two major Korean suppliers?LG Electronics and Samsung SDI?increased their market share, rebounding from losses in Q4 of 2006.

Matsushita commanded a 31.5 percent market share in the PDP market in Q1 with LG Electronics in the second position with 24.7 percent of shipments and Samsung SDI in the third slot with a 22.9 percent share.

However, while the Korean companies are gaining, Matsushita is the only panel maker seeking to expand its existing capacity. In contrast, the other companies are taking a wait-and-see approach as to how PDP TV sales will react to the onslaught of LCD TVs.

Tight supply
"The PDP market encountered tightness in supply in the first quarter due to factors including panel makers scaling back production," said Riddhi Patel, principal analyst for television systems at iSuppli.

"Because of this, most panel makers have cut their production utilization rates to around 70 percent?except for Matsushita, which remains at 100 percent. In order for plasma manufacturers to continue to be successful in the market, they must weather the storm of LCDs while focusing consumer interest on PDPs' attractive form factors and reasonable prices."

Global PDP unit shipment and revenue forecast for 2006-2011

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