Larger format LCDs for commercial use and digital signage up 67pc Y/Y

AUSTIN, TEXAS: While “flat is the new up” for many technologies as the global recession continues, current results show that the flat-panel digital signage market continues to grow with larger-size commercial LCD products outpacing shipments of commercial plasma products 2-to-1 in Q1’09.

Results from the recent DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report revealed that Q1’09 worldwide shipments of larger size (26”+) flat panel displays used in commercial applications for out-of-home environments grew 2 percent Y/Y, but dropped 10 percent Q/Q showing that this market may not be completely impervious to the effects of the global recession. Further analysis revealed that this market segment is still healthy, however.

Sequential declines seen in the period came more as a result of fewer plasma shipments in the quarter due to some production transitions in that sector rather than falling demand. Conversely, LCD-based commercial displays saw a 3 percent sequential growth for the period and an astounding 67 percent growth when compared to the same period as last year.

Fig. 1: Q1’09 Worldwide LCD and PDP Share of 26”+ Large-Format FPDs for Commercial Public Display Applications for Leading BrandsSource: DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report

While LCDs continued to gain momentum as an acceptable Out-of-Home (OoH) flat panel display technology with phenomenal Y/Y growth of 67 percent, plasma-based technologies were unable to take advantage of their price/size advantage in 50”+ sizes, thus shipments fell 37 percent in the same period,” noted Chris Connery, Vice President of PC and Large Format Commercial Displays.

“Looking ahead, plasma looks to re-gain its strong foothold on the commercial FPD space as more production capacity—allowing for larger size displays to be produced even more efficiently start to come on board potentially even butting-up against other OoH technologies such as direct view LEDs and Rear and Front Projection systems in indoor venues.”

Some major brands stopped promoting plasma as a technology for commercial applications in 2008 and such movements no doubt hurt public perception of the technology. Major players such as Panasonic are still quite focused on the technology and are preparing for an annual refresh of their professional line of products as well as expanded capacity, which indicates that this technology is far from being out of contention as a strong competitor in this space.

DisplaySearch’s results indicate that in spite of the drop off in Q1’09 WW total shipments for FPD technologies for commercial environments, Panasonic was the #2 brand for the quarter for large format commercial displays, behind #1 Samsung in total FPD commercial market share.

Table 1: Q1’09 Worldwide Market Share Brand Leaders and Technology Splits for 26”+ Large-Format FPDs for Commercial Public Display ApplicationsSource: DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report
* NEC and Sony announced in 2008 that they would focus on LCD technologies with Q1’09 PDP sales representing sell-out of existing inventory.

Looking forward, the display market will help drive market momentum around digital signage. Fabrication plants for larger LCDs and plasma products are will come on-line in 2009 and 2010 with sizes and technologies geared more towards Out-of-Home environments than traditional in-home TV display sizes.

Other technologies such as various forms of front and rear projection are still prepared to combat the continued onslaught of FPD technologies as well (especially tiled LCD and PDP solutions) with new innovations on the horizon.