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TV IC market defies shipment slump

Posted: 11 Oct 2013 ?? ?Print Version ?Bookmark and Share

Keywords:LED backlight? TV IC? smart TV? 3D TV?

Although there was notable decline in global TV unit demand in 2013, the semiconductor market for TVs is forecast to increase by about seven per cent to $13.1 billion. This is according to the latest report from IC Insights, which added that technologies such as wireless video connections, networking interfaces, multi-format decoders and LED backlighting have boosted the average semiconductor content in TV sets amid the three per cent drop in global TV unit shipments in 2013, added the market research firm.

IC Insights projects that total global semiconductor revenue for televisions will grow 12 per cent to $14.7 billion in 2014 due to an uptick in new TV sales in advance of the 2014 Winter Olympic Games and the 2014 FIFA World Cup. Between 2012 and 2017, the semiconductor market for DTVs is forecast to grow at a healthy pace of 10 per cent per cent annually, increasing to $19.8 billion at the end of the forecast period.

Though the transition to digital TV broadcasting is largely complete in mature markets such as North America, Western Europe and Japan, the transition continues in emerging markets throughout Latin America and Asia-Pacific. Through the forecast period, Chinese manufacturers are expected to flood the Asia-Pacific market with new (primarily low-cost) TVs. However, it is worth noting that China's TV makers, TCL and Hisense Electric, also are accelerating their push into the U.S. market and trying to grab market share from Japanese and South Korean vendors.

Across all regions, shipments of Smart TVs and TVs with 3D technology are helping boost semiconductor content. However, both of these technologies face significant challenges in the next five years. These include fragmentation of platforms and standards and the strong likelihood for technology obsolescence after only a few years.

Meanwhile, the market for 3D TV took a hit earlier this year when ESPN announced that it planned to discontinue its 3D sports coverage and close its 3D sports channel by the end of 2013 to focus its time and efforts on improving traditional high-resolution broadcasts. 3D-equipped TVs are expected to grow to an estimated 23 per cent of total TV shipments in 2013, but this may be a "false positive" since manufacturers now include 3D technology on many of their new TVs even though consumers aren't using the feature.

A couple of technologies showing considerable promise are curved-panel organic LED (OLED) TVs and 4K or Ultra-high definition (UHD) TVs that feature twice the resolution of today's existing HDTV sets. Additionally, the IC Market Drivers 2014 report points out that significant changes are underway as traditional cable and satellite service providers face new and renewed threats from Google, Apple, Amazon, Intel and others to provide alternative methods to viewing one's favourite shows.

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