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U.S. Electronic Displays Demand to Increase through 2008
Apr 2, 2004
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The U.S. market for electronic displays is projected to increase 12.4 percent per year through 2008, approaching U.S. $21 billion, reports The Freedonia Group, Inc., a Cleveland, OH, U.S.-based industrial market research firm. The growth will represent an acceleration from performance in the early-2000s, which was characterized by weakness in high technology sectors such as information processing and communications, which are intensive users of display products, according to Freedonia.

The research firm says the best growth will occur in flat panel displays, with demand expected to rise close to 19 percent per annum through 2008. The cathode ray tube (CRT) segment will continue to decline, although at a somewhat more moderate pace than in 2001-2003 when flat panel displays made massive inroads into the desktop computer monitor market. Aesthetic considerations (especially a flat profile and reduced space requirements), innovations in product design and manufacturing processes, and improved image quality are all promoting demand for flat panel displays at the expense of CRT types, and will continue to do so, Freedonia reports.

Liquid crystal displays (LCDs), led by active matrix LCDs built on thin-film transistors (TFT-LCDs), comprise by far the largest share of the U.S. flat panel display market, having reached 85 percent of total demand in 2003. The LCD market literally surged between 2001 and 2003, when TFT-LCDs became cost competitive enough to take significant share away from CRT displays in the key desktop computer monitor market.

According to Freedonia, LCDs are also expected to be a major factor in the emerging high-definition television (HDTV) market, as are plasma displays (especially for screens larger than 40 in) and microdisplays based on liquid crystal-on-silicon (LCOS) and micro-electromechanical systems (MEMS) technology. Over the next decade or so, a substantial share of US households are expected to upgrade to HDTV or some other digital TV format as the amount of compatible programming increases, creating a substantial potential market for displays, especially flat panel types.

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