In 2007, global TV shipments rose 4% to almost 200 million units, worth over $100bn, and growth will accelerate to reach 280 million units, worth $160bn, by 2012, according to a new report from Understanding & Solutions.
The global TV boom is being powered by consumer desire for flat panel TVs and growth in emerging markets, said Understanding & Solutions. Emerging markets accounted for over 50% of global TV shipments in 2007 and will rise to more than 65% by 2012.
LCD is rapidly growing to become the dominant display technology for television, and accounted for 40% of shipments in 2007 and 64% of market value. By 2012, LCD will account for over 80% of the market.
David Watkins, senior analyst at Understanding & Solutions, said: “Strategic supply of LCD panels has become a critical competitive issue, with huge concentrations of volume under the control of major producers, including manufacturing joint ventures between TV brand leaders Samsung-Sony and LGPhilips.”
Shipments of TVs with screens larger than 37″ in Europe have risen from just 4% of total in 2004 to 23% in 2007, and are set to rise to over 40% by 2012, according to Understanding & Solutions research.
The larger screen trend is in turn driving rollout of High Definition TV and will also boost demand for a new generation of Blu-ray high definition video. “The relationship between consumers and the TV screen is changing,” said Watkins,
“High definition home theatre is an experience to compare with visiting the cinema and is creating need for a new generation of entertainment media and consumer electronics hardware.”
“Over the next four years, TV market growth will be strengthened by major sporting events, with purchase spikes occurring around the Olympics, the Football World Cup and the UEFA championships.
“These events are likely to offset near-term economic uncertainties,” said Watkins, “flat panel TV is a must for the modern home, and global sports events normally trigger high acquisition rates, especially as all of these upcoming events will be broadcast in high definition.”
A recent report from Informa Telecoms & Media found that global net TV advertising revenues will reach US$123 billion in 2008, up 5.8% on 2007 (see Net TV Ad Revenues Forecast To Rise).
From this 2008 total, net pay TV advertising will bring in US$18 billion, a figure which has doubled over the last five years. Pay TV will represent 15% of total TV advertising in 2008.
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