Analyst forecasts more balanced LCD market
The global market for liquid crystal display (LCD) panels will become more balanced between supply and demand after an undersupply in 2014, a local analyst predicted Thursday.
The global demand for LCD screens is forecast to grow 8 percent in 2015, outpacing an estimated 6 percent increase in worldwide LCD production capacity, said David Hsieh, senior director for display at research firm IHS DisplaySearch.
In comparison, LCD demand grew by 11 percent in 2014, far exceeding supply growth of 5 percent, Hsieh said.
“2014 was a tight year with demand for larger TVs growing on an area basis. Also, effective capacity was influenced by new technologies and lower yield rates,” he said at the Taiwan Flat Panel Display Conference organized by IHS DisplaySearch.
While 2015 is expected to be a balanced year, over-shipments of LCD TV panels over the past two years will likely result in some inventory adjustments in the first half of this year, especially on some mainstream sizes, Hsieh noted.
For 2016, the analyst forecast that the global LCD market will gradually shift to oversupply with an estimated demand growth of 7 percent and supply growth of 8 percent.