China TV Market to Enjoy Solid Growth in 2014 Tweet

Gains to be led by rising demand for LCD-TVs.

The China television market, already a dominant force on the world stage, is expected to perform strongly once again in 2010, led by an overall rise in the production of television sets as well as surging demand for LCD-TVs, according to iSuppli Corp.

As the world’s top TV manufacturer, China will produce an estimated 95.5 million TV sets in 2010, up 11.3 percent from 85.8 million in 2009 when the country accounted for 42 percent of total global TV shipments. This year’s anticipated rise is also a bigger increase than the 5.3 percent gain made during the 2008-2009 period, iSuppli figures show.

LCD-TV shipments alone this year will increase 40 percent to 80 million—or nearly 84 percent of overall China TV shipments—far outpacing the 13.6 million CRT-TVs and 1.9 million plasma sets to be produced in 2010.

By 2014, iSuppli forecasts that TV production in China will rise to 128.1 million units, translating into a Compound Annual Growth Rate of 7.6 percent for the forecast period.

LCD-TVs Take Center Stage
The strength in China’s TV manufacturing can be attributed to the brisk expansion of LCD-TV production capacity as well as to the growing demand from both the domestic and export markets. In particular, Chinese LCD firms are investing billions of dollars in set-production lines, panel fabs and component factories, becoming more competitive with the global brands in the overall LCD-TV arena.

Of the total China LCD market in 2009, local Chinese OEMs accounted for three-quarters market share, beating out their foreign-based counterparts that had pulled back on marketing in the country because of the global economic crisis. Chinese OEMs were also helped by their deep penetration in the rural market, along with support from the government’s subsidy program offering rebates to consumers who buy TVs and other consumer goods.

In addition to the encouraging factors above, China’s LCD-TV market will receive a boost from consumer interest in new flat-panel TV features, such as higher 120/240Hz refresh rates, LED backlighting and Internet-ready capabilities, further cementing the dominance of LCD technology in the world’s most populous country, iSuppli projections show.

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