New tech, 5G stoke growth of 8K market
Winter Olympics provide crystal clear exposure for firms involved in ultrahigh definition TVs, displays
The emergence of the 8K ultrahigh definition television industry will usher in explosive growth opportunities, fueled by the upcoming Beijing 2022 Winter Olympics and the deployment of superfast 5G technology, which makes the transmission of 8K content possible, industry experts said.
With breakthroughs in 8K technology and the growing maturity of the industrial chain, the cost of 8K televisions is expected to drop as shipments and penetration rates rise, they added. The term 8K refers to an image or display resolution with a width of approximately 8,000 pixels, currently the highest UHD resolution in digital television and digital cinematography.
Spectators will be able to see 8K images of Olympic events on TV and UHD images on 8K terminals at venues, city squares and other places during the Winter Olympics, said Yu Hong, director of the Beijing Organizing Committee for the 2022 Olympic and Paralympic Winter Games’ technology department.
Organizers of the Games and venue operators have tested new broadcasting technologies, such as 8K UHD livestreaming and cloud-based broadcasting, to give viewers a more immersive experience. In addition, China Media Group said it will broadcast the event with some innovations, including 8K UHD transmissions.
China’s UHD video industry was expected to exceed a valuation of 4 trillion yuan ($627.6 billion) by 2022, according to a plan issued by the Ministry of Industry and Information Technology, the National Radio and Television Administration and China Media Group.
The plan said breakthroughs were to be made in the research and development of products and the industrialization of 8K technology this year. Internationally competitive companies were being fostered in the field, and the number of UHD video users is expected to hit 200 million.
Chinese home appliance manufacturers have been ratcheting up efforts to join the 5G-powered 8K UHD TV flurry in a bid to grab a bigger slice of the country’s high-end TV market.
Wang Zhiguo, chairman of Shenzhen Skyworth-RGB Electronics Co Ltd, a subsidiary of Chinese television maker Skyworth Group, said the company is committed to providing a complete range of 8K products, including video cameras, monitors and cloud operating systems, accelerating its steps in the 8K UHD industrial chain. That strategy is expected to help Skyworth expand 8K technology applications to a wide range of fields like aerial photography, education, healthcare and advertising, Wang said.
Wu Wei, chief engineer at Skyworth Group, said the country’s 8K video industry will see robust growth with the Beijing 2022 Winter Olympics, which will use 8K UHD livestreaming and transmission.
“5G offers technological support for the adoption of 8K, while 8K is one of the best application scenarios for superfast wireless technology,” Wu said, adding that 5G has the advantages of high speed, large capacity and minimal delay, which creates great opportunities for the adoption of 8K UHD TV.
The domestic 8K TV industry is still in a nascent stage, Wu said, adding that Skyworth will intensify research and development efforts in 8K chips to improve the clarity, contrast and brightness of images.
Skyworth has launched a series of 8K TV products with built-in 5G connectivity, which supports 8K signal reception, decoding, image signal processing and screen display.
“With the advent of superfast 5G technology and the popularization of big TVs, 8K has created many opportunities. The broadcasting of sporting events via 8K equipment has also motivated people to demand high-definition image quality,” said Liu Fei, research director of the consumer electronics department at
market consultancy AVC.
However, there is a shortage of 8K video content, which requires advanced, professional equipment such as special cameras and monitors, increasing the cost of producing content, Liu said. The high cost of 8K technology-based products and limited 8K content are major factors expected to hinder the market’s growth.
“With the commercial application of 5G and the application of ultrahigh definition display technologies, China’s ultrahigh definition terminal industry is expected to usher in a golden period of development,” said Li Dongsheng, founder and chairman of Chinese consumer electronics giant TCL.
Li spoke at the 2021 World UHD Video Industrial Development Conference in Guangzhou, Guangdong province, in May. The penetration rate of the 8K TV market is forecast to rise from 0.5 percent in 2021 to 7 percent in 2025 as consumer demand for UHD videos rises, he said.
More efforts should be made, Li suggested, to strengthen research and expand the application scenarios of UHD technologies, accelerate breakthroughs in key and core components — such as high-performance memory chips and image sensors, and new display material — and boost innovation in UHD video business models.
TCL began its rollout in the 8K TV market in 2018 and has invested heavily in cutting-edge display technologies such as quantum dot and mini light-emitting diodes, which incorporate tiny crystal semiconductor particles for better brightness and color, conducive to creating excellent image quality for 8K TVs.
“The deep integration of UHD videos, 5G, artificial intelligence, virtual reality and other new generation information technologies brings about a large number of new scenarios, applications and models, which have become an important driving force for commercial use of 5G,” said Zhang Li, director of the China Center for Information Industry Development.
Chinese home appliance giant Konka Group Co Ltd has concentrated its innovation efforts on cutting-edge technologies, such as 5G, 8K UHD and the internet of things, powered by artificial intelligence, as part of a broader push to propel the development of the semiconductor display industry. The IoT refers to a network of devices that contain software or sensors that allow them to exchange data.
In 2019, the company unveiled the 8K chips it developed.
In addition, Konka has formed a strategic partnership with Migu Co Ltd, a subsidiary of China Mobile that provides digital content and services, to jointly build a 5G UHD laboratory to bolster the development of the UHD video industry.
The partners’ intention is to carry out research and exploration in the fields of 5G, 4K, micro light-emitting diodes and 8K UHD display technologies, and roll out innovative products for individuals, families, healthcare, culture, education, entertainment and sports.
“The deployment of 5G technology will make the transmission of 8K content possible and boost the development of the internet-of-things industry,” said Peng Jianfeng, deputy secretary-general of the China Video Industry Association.
Domestic TV sales reached 17.81 million units in the first half of 2021, down 14.7 percent compared with the same period in 2020, while the corresponding sales revenue stood at 59.4 billion yuan, an increase of 15.1 percent year-on-year, according to AVC.
Though 8K TVs are still quite expensive, a report released by global consulting group Deloitte said more than 1 million 8K TV units were forecast to be sold globally in 2021.
While 8K TVs make up a small percentage of the total number of new TVs sold, the models were projected to garner more than $3.3 billion in global revenue in 2021, according to the consultancy.
With the average 8K TV retail price seven times that of the average TV, Deloitte predicted that 8K TV prices might soon fall to $1,500. In the premium TV segment, the proportion of 8K TVs is increasing across the globe.
At present, more efforts should be made to further improve 8K video content and optimize the production process, said Sun Jian, an analyst at the TV department of Beijing-based market research organization Sigmaintell Consulting. Sun added that the industrial chain for 8K hardware and software is not yet mature.
Sun said 8K TVs are high-end flagship products, and shipments are limited in the Chinese market. With a decline in production costs and ongoing improvements in 8K content, shipments of 8K TVs are expected to grow.