China’s LCD-TV Production Set to More than Double by 2013

China’s shipments of LCD-TVs are set to more than double from 2008 to 2013 due to strong domestic and export demand, allowing the nation to maintain its position as the world’s top maker of television sets, according to iSuppli Corp.

China’s LCD-TV shipments—both for domestic use and for export—are set to grow to 30.7 million units by 2013, up from 13 million units 2008, rising at double-digit annual percentage growth rates throughout the forecast period.

China for years has been the leading shipper of Cathode Ray Tube-Television (CRT-TV), but only recently has the nation become the top maker of sets using all types of display technologies.
China attained CRT-TV leadership because the nation has a complete CRT manufacturing industrial chain. The LCD-TV market was not as well developed as the CRT segment in recent years, although both domestic and export demand has continued to rise robustly. However, this situation is changing, with the domestic LCD-TV manufacturing chain beginning to mature.
China’s television production will rise to 101 million units by 2013, expanding at a Compound Annual Growth Rate (CAGR) of 6 percent from 81.5 million units in 2008. This means that China will remain the world’s largest television production region for the foreseeable future.

What Downturn?
Because the prices of LCD-TVs are declining rapidly, these televisions are enjoying rising acceptance among Chinese consumers. Even at the larger sizes, i.e., 42-inch and bigger, LCD-TV sales are exceeding those of plasma.

Other factors are driving Chinese consumers to choose LCD-TVs over CRTs or plasmas, including:

1. Awareness and acceptance of the 120Hz refresh rates, which improve the display of fast motion on an LCD-TV.
2. Light Emitting Diode (LED) backlights, which reduce energy consumption and provide superior lighting.
3. Thinner form factors, which are more attractive.

While these factors pale in importance compared to the price declines, these features—which were just introduced to the Chinese market in 2008—are rapidly gaining acceptance in the nation.

Local OEMs have become more enthusiastic about marketing LCD-TVs because the LCD supply chain is viewed as being more open than that of plasma TVs. The LCD-TV supply chain has bountiful panel suppliers and a wealth of glass makers eager to help start-ups or established TV OEMs adopt the display technology.

Chinese OEMs are further investing in LCD module facilities, some of which have LCD module assembly lines already in mass production since 2008. This type of OEM commitment will allow LCD-TVs to exceed CRT and plasma sales in China, iSuppli believes.