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IHS: U.S. TV Shipments to Fall Again in 2013

9 Apr, 2013 By: Erik Gruenwedel

U.S. television shipments are expected to decline for a second year in a row in 2013, with growth projected to resume in 2014 as the liquid crystal display television (LCD TV) segment regains some of the strength it lost in the 2012, according to a new IHS report.

Shipments of TVs into the U.S. market this year will tally about 36.6 million units, compared to 37.6 million last year, according IHS. The anticipated 2.7% contraction will be smaller than the 5.8% slide suffered by the industry in 2012 when domestic TV shipments retreated from 39.9 million units shipped in 2011.

Despite the current negative picture, the industry is expected to see a reversal of fortune next year as shipments increase to 37.8 million units —marking the beginning of a four-year run of steady growth.

“U.S. television demand is being hit by the double whammy of the plunge in both the plasma and LCD TV segments,” said Veronica Thayer, analyst for consumer electronics & technology at IHS. “After peaking in 2010, plasma sales now are on a terminal decline. Meanwhile, the mature U.S. LCD TV market contracted in 2012 as most consumers already own one or more sets.”

Plasma TV shipments in 2012 shrank 24% to 3.6 million units compared to 2011, while LCD TV shipments dipped 3% to 33.8 million units.

While plasma shipments will continue to be down this year as part of an irreversible trend toward extinction, LCD TV shipments will be up 3%, reversing the losses of last year and coming close to the segment’s 2011 shipment level. LCD TV shipments will grow another 6% next year.

Meanwhile, the introduction of organic light-emitting diode (OLED) TVs are expected help jumpstart domestic TV sales.

LG Electronics and Samsung Electronics are each launching 55-inch models—first previewed in January at the Consumer Electronics Show in Las Vegas, and vastly different from the tiny 11- and 15-inch OLED TVs shown several years ago.

A total of just 56,000 OLED TVs will ship cumulatively in 2013 and 2014. But shipment numbers will grow quickly from 2014, jumping to 370,000 by 2015, and then surging to 1.9 million units by 2017, according to IHS. Revenue from OLED TVs could reach as much as 21% of the total TV market revenue for that year.


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