Flat Panel Market, Anything but Flat

CLOVERDALE, CA - August 13, 2002 - By 2005 the North American flat-panel LCD market for monitors will reach $49-bil, having grown at an annual rate of 18% since 2001. In 2002, total shipments of LCD monitors will reach 10 million units, and will likely surpass 45 million units in 2005.

In 2005 share in shipments by screen size will be 15-inch (62%), 17-inch (28%), 18-inch (9%), and 19-inch (1%). 

Corporations are buying LCD monitors for a variety of reasons: 

  • Lower purchase price: Two years ago, flat panel displays appropriate for the business environment cost $1,000. Today a good 15-inch monitors cost less than $400. High end 19-inch models that used to cost more than $3,000, now sell for a little over a $1,000.
  • Cool: People like the way they look—efficient, modern, upscale. LCDs are still somewhat of a status symbol for the first to have them on their desk tops, especially for 17-inch and over models.
  • Ergonomics: Crisper images cause less eye strain. Being less bulky, LCDs can be located anywhere on a desktop for maximum viewing.
  • Space: Financial institutions and other businesses that rely on rooms full of monitors can more economically use floor space with the LCDs smaller footprint.
  • Energy savings: LCDs have about a 3 to 1 power savings over CRTs. For companies with thousands of employees, i.e., monitors, the savings add up.
  • Longer life: CRTs lose about half their brightness in 5,000 to 10,000 hours, depending on the quality of the monitor. LCDs are rated for between 25,000 to 35,000 hours for the same half-life.

In the 2004 to 2006 time frame, LCD sales will pass that for CRTs. Recent sales have largely resulted from pent-up demand and falling prices. Price reductions are flattening out. Yet, with the cost of computers coming down, justifying the higher cost of an LCD over a CRT for reasons of ergonomics, and energy and space savings will keep the demand high for LCDs.


The information in this In-Depth Analysis is based on a review of the InfoTech Trends database of market research statistics, as well as additional sources. For more market data on the information technology industry, go to Free Data.   

 


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