Impressive Shipment Performance of 4K TV Panels Cut Short in May with Market Penetration Down to 13.4%, According to TrendForce

The shipments of LCD TV panels in May totaled 22.72M units, a 4% increase over the previous month and a 9% year-on-year increase, according to latest report from WitsView, a division of TrendForce. However, 4K panel shipments had a 2% monthly decline, from April’s 3.1M units to 3M in May. As a result, the market penetration of 4K panels also saw a slight drop from April’s 14.4% to May’s 13.6%. 

The outstanding shipment performance of 4K panels in April was owed to the stock up demand generated by the Chinese Labor sales. The penetration rate for that month was 14.4%, a big leap from the first quarter’s 8.7%. Nonetheless, the market calmed down after the sales event and the 4K penetration rate fell back down to 13.6% in May. Among the major 4K panel makers, SDC, AUO and BOE saw increases in their 4K panel shipments; and their market shares also grew from 35%, 8% and 4% in April to 43%, 9% and 6% in May respectively. Shipments weakened for LGD and Innolux by contrast, with panels sized 49, 50 and 55 inches contributed to the decline. The most demanded size for 4K TV panel in May was still the 55-inch. This size category saw its share in the 4K panel market increased from April’s 29% to May’s 31%. Both the 49- and 50-inch came second in popularity, but their respective shares in the 4K panel market fell from 15% and 14% in April to 12% and 11.4% in May.

WitsView analysis indicates that this year’s outlook for 4K TV panels remains bright. Despite encountering demand fluctuations during May, 4K models are still the stellar products for branded TV vendors during the upcoming holiday sales. Moreover, the TV networks in the United States and Europe are actively expanding their 4K contents. With this format expected to pique the market’s interest this year, the penetration rate of 4K panels is estimated to be at 17%, a significant increase from the 7.8% in 2014. 

For the latest report on LCD TV panel shipments, please see WitsView’s Monthly LCD TV Panel Supply Chain Tracker. The report offers complete and up-to-date analysis on the display panel market.