Ultra-high-definition TV Producers Have Ambitious Plans for 2014

4K2K, or UHD (Ultra High Definition), TV is among the hottest topics in the global TV market today. Unsurprisingly, they have become the focus of marketing efforts by Korean and Japanese vendors this year.

NPD DisplaySearch, the world leader in display market research and consulting, said that 4K2K sales are transitioning from early adopters to more mainstream consumers, fueled by rapidly falling prices, particularly in China.

The market research firm estimates that 4K2K TV shipments totaled 1.9 million units in 2013 and will skyrocket to 12.7 million units this year. China occupied an 87% share of the 4K2K TV market in 2013, a figure that is expected to drop only slightly to 78% in 2014. This means that China will continue to lead in 4K2K TV sales by a factor of three this year. Other regions will catch up eventually, but China will remain the leader in the near term, thanks to intense competition and low prices.

 Both Samsung and LG unveiled 105-inch curved TVs with 5K (5120x2160 pixel) resolution at CES 2014. Another of Samsung's focal exhibits at show was a full line of 4K2K TVs, from 50- to 110-inch. At the same show, Vizio and its contract supplier Hon Hai of Taiwan showcased a 120-inch 4K2K TV, the world's largest so far, implying the brand's determination to develop more big-size models.

The top-two thin film transistor-liquid crystal display (TFT-LCD) panel suppliers in Taiwan, Innolux Display Corp. and AU Optronics Corp. (AUO), pulled ahead their Korean and Chinese counterparts in the 4K2K TV panel business in 2013, and are expected to further strengthen their product lineups in 2014. AOU president Paul Peng is optimistic about the 4K2K TV market in 2014, as Japan and other industrially advanced countries expand their trial broadcasts of 4K2K content. The penetration of 4K2K TVs is expected to climb above 6% this year, Peng said.

AUO reported that it has developed a full line of 4K2K TV panels with more affordable prices, aiming to boost 4K2K penetration in the international market. Innolux's president, C.C. Wang, said that his company accounted for 8% of global shipments of 4K2K TV panels in 2013, with a 24% share of over-50-inch shipments, and is targeting a global share of 20% in 2014.

David Hsieh, vice president of DisplaySearch Greater China, pointed out that most major panel suppliers have set aggressive 4K2K TV panel shipment goals this year. Innolux has set a target of 10 million units, AUO five million, Samsung four million, LG Display two million, China Star Optoelectronics Technology Co. (CSOT)'s two million, and Beijing BOE Optoelectronics Technology (BOE OT) one million.

“As the manufacturers of 4K×2K TV LCD panels and sets expect strong growth in 2014, the supply chain focus on growing demand is rising dramatically,” noted the director for global TV research at NPD DisplaySearch. “Panel makers are planning for nearly 27 million 4K×2K TV panels to be produced next year, while brands have somewhat more modest expectations for the end market. There is a significant difference in outlook between China and other regions.”