IHS: Global TV Market Won’t Recover Until 2015

EL SEGUNDO: The global shipments of televisions in 2012 amounted to 238.5 million units, which is down 6.3 percent from the prior year, and shipments are not expected to increase back to the 2011 level until 2015, according to an IHS iSuppli Worldwide Television Market Tracker Report.

Shipments rose by 11.6 percent in 2010 and declined to a 1-percent rise in 2011. Combined with economic factors, as well as issues related to government subsidies and the analogue transition, the slowdown of flat-panel replacement trend contributed largely to the downturn in 2012. The North American and Western European regions in 2012 both had significant declines. Growth stalled in Latin America, the Middle East, Africa and the Asia Pacific, however Eastern Europe and China were the only regions to enjoy rising shipments. Japan took the biggest hit, as shipments fell by 13.5 million units, accounting for the majority of the global decline of 16 million.

In 2013, the global TV market is expected to stabilize, with shipments remaining flat compared to 2012, up just 0.3 percent. By 2014, however, the market will return to growth with a 2.8 percent increase. The World Cup is expected to drive sales in Latin America, while China is also forecast for growth. In 2015, shipments are expected to amount to 253.1 million units. By 2017, global TV shipments will rise to 270.5 million units.

“Television shipments in 2012 declined for the first time for more than a decade, sounding the coda for the flat-panel replacement wave that deluged the business throughout the 2000s,” said Tom Morrod, TV systems analyst at IHS. “This event marked a fundamental change in the growth trajectory of the market, with flat or minimal increases in shipments expected in the coming years—a sharp contrast to the double-digit increases seen prior to 2010. While some specific events contributed to the downturn of 2012, such as the fall of sales to the Japanese market, the decline reflects a fundamental slowdown in the television market, with liquid crystal display television (LCD TV) shipments falling for the first time ever. Although television shipments will stabilize in 2013 and growth will return in 2014, developed markets have become saturated with flat-panel televisions.”