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DisplaySearch Sees TV Dollar Decline

12/19/2008 01:28:00 PM Eastern

Austin, Texas — Worldwide revenue for LCD TV is expected to drop year over year for the first time ever, according to a new 2009 forecast from The NPD Group’s DisplaySearch.

The market research firm issued a revised fourth-quarter 2008 Quarterly Global TV Shipment and Forecast Report Thursday in which it said it expects 2009 LCD revenues to fall 16 percent from the previous year to $64 million. Total TV dollar volume is expected to fall 18 percent over the next 12 months to $88 billion.

Meanwhile, global TV unit shipments are forecasted to drop to 205.3 million units, from 206.4 million in 2008, DisplaySearch said.

DisplaySearch attributed the declines to falling TV prices to downward revisions in its earlier forecasts for 2009 LCD and plasma shipments of 7 points and 6 points, respectively.

According DisplaySearch, the global LCD market should now climb 29 percent to hit 102.2 million units in 2008, and rise another 17 percent year over year to 119.9 million units.

Most of the growth will come from emerging markets, which have not yet achieved the adoption levels of flat-panel TVs seen in other sectors of the world. These regions will see a 45 percent year-over-year growth rate in 2009, which will be down from 68 percent in 2008, DisplaySearch said. Unit growth in developed regions such as Japan, North America and Western Europe will be just 2 percent year over year, largely due to the impact of the economic crisis.

The global plasma TV market, which will see fewer panel makers in 2009, is expected to rise 24 percent year over year to 13.9 million units in 2008, but will only climb 5 percent year over year in 2009 to 14.6 million units, DisplaySearch said.