LCD-TV Shipments to Surpass CRT in India by 2012

The Chinese television market this year is making a rapid switch to Liquid Crystal Display-Televisions (LCD-TVs) thanks in part to a government stimulus programs established to help the country manage the worldwide economic downturn. While CRT-TVs still have the largest installed base and supply chain power in China, the attractive form factor, lower prices and general better performance of LCD-TVs is generating demand.

Now a similar shift is being seen in India, according to iSuppli Corp.

While LCD-TVs accounted for less than 5 percent of the total televisions sold in India in 2008, they are expected to rapidly rise in the next five years to contribute 66 percent of the total shipments by 2013. By 2012, LCD-TV shipments will have overtaken CRT-TV in India. This equates to 13.8 million units shipped by 2013, rising at a Compound Annual Growth Rate (CAGR) of 109.8 percent from just 731,000 in 2008.

iSuppli forecasts 9.5 million LCD-TV units will be shipped in India in 2012, compared to 9.4 million CRT-TVs,.

This again is attributed to declining prices, increased consumer awareness and adoption and an ongoing push by brands and retailers. Of course, this is also being helped by the decline in worldwide production and the entire supply chain for CRT technology. CRTs will suffer a negative 15 percent CAGR during the period of 2008 through 2013.

Discovering the Benefits
Much like many other regions of the 25,000 world, Indian consumers are discovering the benefits to moving to flat panel technology for their televisions. Indian consumers are intrigued by LCDs’:

* Greater space savings
* Improved picture quality
* Low maintenance
* Attractive form factor
* Rapidly-declining prices

LCD-TV purchasing also is being boosted by the transition from analog to digital networks in the country, the adoption of Internet Protocol Television (IPTV) and Direct To Home (DTH) technologies and increased desire for High Definition (HD)programming.

Not Buying Local
Despite the high growth expected for LCD-TVs, it is unlikely that India will witness future growth in domestic LCD panel and module production. This is because the growth, while substantial, is not enough to justify opening a design or manufacturing center.

While it is true that Samsung, LG and Dixon have opened manufacturing facilities in India, most of these activities have been limited to final assembly. Unless the demand in India skyrockets, localized LCD-TV production will not be feasible, especially as Korean and Chinese LCD manufacturers prefer to produce their products inside their own facilities.