Despite a significant decline in unit shipments, revenues for the US TV market are expected to remain flat in 2013 compared to 2012 as larger, higher-priced sets account for an expanded portion of sales, according to research firm IHS.
US TV revenues will amount to US$28.2 billion in 2013, almost unchanged from US$28.1 billion in 2012, said IHS, adding that shipments in 2013 are expected to decline by 4% to 36 million, down from 37.5 million in 2012.
The stronger performance for revenues will be generated by an increase in the ASP of all TVs. US TV ASP is expected to rise 5% to reach US$783 in 2013, up from US$749 in 2012, the firm added.
"With the flat-panel-replacement wave fading further into history, the US TV market is undergoing a long-term slowdown in unit shipments," said Veronica Thayer, analyst for consumer electronics & technology at IHS. "However, market revenues in 2012 and 2013 are expected to hold steady as shipments of larger-sized, more feature-rich and higher priced sets continue to increase. Illustrating this trend, shipments of LCD TVs sized 55- to 59-inch are expected to surpass those in the 45- to 49-inch category in 2013 for the first time ever in 2013."
The big picture
LCD TVs in the 55- to 59-inch size range are expected to account for 10.2% of US TV shipments in 2013, up from 9.6% in 2012. In comparison, sets ranging from 45- to 49-inch will decline to 8.3% of the market, down from 11.7%. By 2018, the 55- to 59-inch segment will rise to 13% of total US LCD TVs.
Meanwhile, shipments of 60-inch and larger LCD TVs in 2013 will make up 9.6%, up from 6.6% in 2012. This trend is expected to continue, with the shipment of such sets climbing to represent 12% of the market in 2018. In terms of revenue, growth will be even bigger, increasing to 35% in 2018, up from 18% in 2012, the firm believes.
LED balloons
Sets using LED backlighting technology in 2013 are forecast to increase to 28.9 million units, accounting for a total of 84% of the US LCD TV market. This is up 48% from a total of 19.4 million LED-backlit TVs in 2012.
Meanwhile, the US market for older CCFL-backlit sets is in rapid decline, with share for such TVs anticipated to drop to nearly zero in 2016, said IHS.
"LED TVs have been a big consumer hit, marketed on the basis of being eco-friendly and with better image quality," observed Thayer. "Meanwhile, the price differential between CCFL- and LED-backlit sets in smaller sizes has dwindled down."
