Supply is tightening and prices increasing in the market for large-sized LCD panels. According to market watcher iSuppli global revenues for large-sized LCD panels, that is panels of 10 inches or greater, will rise to $66bn in 2007, up 22.2 per cent from 2006.

This represents a 6 per cent increase compared to iSuppli’s previous forecast of $62bn for 2007.

In 2007, worldwide shipments are forecast to reach 353.8 million units, up 25.2 per cent from 282.5 million units in 2006. iSuppli previously predicted shipments of 350.1 million units for the year, said iSuppli.

“Following weak pricing conditions in the fourth quarter of 2006 and in the first quarter of 2007, the large-sized LCD panel market entered into a robust recovery in the second quarter—and strong conditions are persisting in the third quarter,” said Sweta Dash, director, LCD and projection research for iSuppli.

“Demand is rising from all three major markets for such panels: televisions, desktop monitors and notebook PCs. Meanwhile, inventories remain under control. This combination of rising demand and constrained supply is causing overall panel prices to increase. Demand for ever-larger LCD-TVs has prompted iSuppli to raise its revenue forecast by a larger margin than its unit forecast,” said Dash.
  
Dash also predicted the large-sized LCD panel market would expand to 597.6 million units by 2011, up 2 per cent from iSuppli’s previous forecast of 587.1 million units. Revenue will reach $102bn in 2011, up 6 per cent from iSuppli’s previous forecast of $96bn for the year.

This will mark the first year the global large-sized LCD panel market exceeds $100bn in size.

“In the coming years, unit growth will be driven by increased adoption of LCD-TVs among the world’s consumers,” Dash added. “Revenue growth will arise from consumers shifting to bigger LCD-TVs, especially to 40/42-inch, and even larger sizes.”