monitor


2022-07-25

E-sports LCD Monitor Shipment Volume Forecast at Approximately 23.2 million units in 2022, Market Size to Contract in 2023

Shipments of e-sports LCD monitors is expected to come in at 23.2 million units in 2022, with an annual growth rate of only 2%. Although branded and panel manufacturers are still actively promoting e-sports monitors, the Russian-Ukrainian war began to affect overall European consumer market demand starting in February 2022. After 2Q22, Europe was clearly hit hard by inflation and demand for consumer electronics products shrank sharply, steadily eroding e-sports LCD monitors sales. If sales in peak season 4Q22 are disappointing, gaming LCDs may not be able to maintain their growth momentum and will face the first year in which shipments declined.

Strictly control costs and inventory to maintain profitability and competitiveness

At present, there is no shortage of materials for e-sports LCD monitors and panel prices are falling month by month. Transit time was shortened by 2 to 3 weeks in 2Q22. In addition to sluggish consumer demand in Europe, product sales have slowed. Demand in 2H22 will also feel the heat of interest rate hikes in the United States. Therefore, branded manufacturers must clear their high-priced inventories in the shortest possible time and reduce the inventory levels of panels and whole devices as soon as possible to curb ballooning losses precipitated by cratering prices.

M-type development of e-sports products to increase product penetration

Looking forward to shipments of e-sports LCD monitors in 2023, e-sports merchandise is expected to remain a key product in continuous development at major branded manufacturers. However, overall market size will stagnate in 2023. Considering the limited market, manufacturers must raise the value of their products. E-sports products need M-type development if they wish to grow despite trends.

Firstly, is parity of low-end gaming products, such as narrowing the price gap between gaming products and standard products or reducing specifications and cost to replace prior 60Hz products with 100Hz products. Development of high-end e-sports products with higher resolution and higher refresh rates or new technologies such as QD-OLED, OLED, and Mini-LED should continue in order to improve and optimize said products and enhance the consumer experience. Hopefully, consumers will prioritize e-sports products when purchasing LCD monitors and its market share will continue to expand.

(Image credit: Unsplash)

2022-03-31

[Russia-Ukraine] Intensifying Consequences of Russian-Ukrainian War and Rising Inflation, TV, LCD Monitor, Notebook Shipments Face Correction Pressure, Says TrendForce

As the Russian-Ukrainian war directly affects Eastern Europe and, indeed, the entire European market, the supply of raw materials has destabilized and prices continued to soar, exacerbating inflation and pummeling the global economy. In addition, lockdowns and work suspensions caused by the recent pandemic outbreak in China and the government’s insistence on a dynamic zero-COVID policy may lead to complex problems such as reductions in factory production efficiency and logistical delays. TrendForce indicates, the uncertainty of current global political and economic circumstances have upset demand for three major display applications including TVs, LCD monitors, and notebooks, overshadowing 1H22 with pressure to correct expectations.

TV panel prices nearly bottomed out, driving demand in TV market remains challenging

In terms of the TV market, due to the deleterious effect of the Russian-Ukrainian war on inflation and assuming consumer budgets remain unchanged, expenditures on non-essential items will fall, deferred demand for TV products. In addition, due to issues in 2021 such as the shortage of cargo containers and port congestion, shipping costs spiked, indirectly inflating the production cost of TV sets. Before the pandemic, shipping costs on a 65-inch TV was US$9. Last year, this jumped to US$50-US$100, scaling with TV size. Even though current TV panel pricing has plunged by 30% to 40% compared to last year’s peak, the fact that freight costs are not expected to improve in 2022 will inevitably affect TV brand promotions and scale of stocking during the peak season of overseas markets in 2H22. Therefore, TrendForce revises downward its TV shipment forecast for 2022, from the original 217 million units to 215 million units, reducing annual growth rate to 2.4%.

Stay-at-home economy effect vanishes, war worries dampen demand, dragging on demand for LCD monitors

In terms of the LCD monitor market, the scale of the 2022 market will be smaller than that in 2021 as the overall market is no longer supported by strong demand from last year’s stay-at-home economy. In addition, relatively stable past demand originating from the European market ran headlong into the Russian-Ukrainian war at the end of February. This, coupled with a subsequent butterfly effect that may lead to a downward revision in demand, as well as problems such as inflation and sustained high freight rates, make it difficult for brands to realize aggressive shipping goals. Therefore, TrendForce preliminarily revises downward its LCD monitor shipment forecast for this year, from 144 million units to 142 million units, expanding annual negative growth rate to 2.3%, without ruling out a possibility of further downward revision.

Notebook demand under downward pressure from inflation and soaring component inventories

In terms of the notebook computer market, TrendForce revises downward its original 238 million unit shipment forecast to 225 million units, a decrease of 8.5% YoY. There are three primary factors to this downgrade. First, Chromebooks benefited from the pandemic driving demand for distance education in 2021, accounting for 15% of total notebook shipments. Chromebook shipments are forecast to decline by more than 50% in 2022 as a whole, disrupting total notebook shipments by approximately 7~10%. Second, the conflict between Russia and Ukraine has caused most notebook brands to suspend shipments to Russia. Russia accounted for approximately 2% of global notebook shipments in 2021 and a suspension will also curb the demand for notebook shipments. Third, every notebook brand has revised 2022 shipment forecasts downward by approximately 10-15% on average compared to the beginning of the year, indicating that inflation has clouded these brand’s future demand outlook. The inventory of the entire supply chain including certain in-transit ODM/OEM components, continues to climb while the prices of some components continue to face downward pressure, resulting in intertwined problems and forcing notebook brands to prudently control purchasing momentum, which may further impact the upstream supply chain.

2022-03-31

[Russia-Ukraine] Repercussions of Russian-Ukrainian War and Rising Inflation, E-sports LCD Monitor Shipments Estimated at Approximately 26.1 Million Units in 2022, Annual Growth Reduced to 14%, Say TrendForce

According to the latest TrendForce research, although factors such as panel and component mismatch and supply issues and the fading effects of the stay-at-home economy influenced shipments of e-sports LCD monitors (defined as refresh rates above 100Hz) in 2021, many brands targeted e-sports LCD monitors in 4Q21 with a strategy of aggressively reducing e-sports product pricing to prompt a volume surge and successfully boosted shipments of e-sports LCD monitors to 22.8 million units in 2021, with an annual growth rate of 24%. However, growth momentum will slow in 2022. In addition to long lead times, the most significant variable remains the impact of the Russian-Ukrainian war. If the war continues, it will impair European market demand and affect the shipment performance of e-sports-related products. In addition, the Russian-Ukrainian war has triggered a surge in the prices of crude oil, metal, and agricultural commodities, spiking previously growing inflationary pressure. Thus, TrendForce conservatively estimates shipments of e-sports LCD monitors at 26.1 million units in 2022, with an annual growth rate of 14%.

In terms of product types, the market share of flat-screen e-sport LCD monitors reached 59% in 2021, officially surpassing the 41% of curved monitors. Last year, when Samsung Display (SDC) faded out of the supply chain, it caused a shortage in the supply of curved panels, increasing the magnitude of price hikes. In addition, the supply of flat IPS e-sports products continued to increase, resulting in a decline in the competitiveness of the curved panel market. In 2022, the market share of flat and curved panels will remain unchanged but the supply of curved gaming panels from the two major suppliers, AUO and CSOT, will continue to grow with curved e-sports panel pricing the first to fall. The cost-effective advantage of whole curved e-sports devices has reemerged, which will bump the market share of curved e-sports LCD monitors to 43%.

In terms of e-sports product resolution, FHD (1920×1080), QHD (2560×1440), UHD (3840×2160), and Ultra-wide (2560×1080/3440×1440/5120×1440, etc.), in 2021, FHD captured the highest market share at 62.9% followed by QHD, Ultra-wide, and UHD. TrendForce believes, in addition to continuously improving e-sports product specifications, the simultaneous improvement of resolution will assist monitor brands in maintaining or improving profitability. Especially since, starting from 4Q21, the supply of 34-inch (21:9) wide-screen VA products increased significantly. This coupled with noticeable panel price reductions, expands profit margin and allows monitor brands more room to operate and is expected to drive wide-screen monitors to compete for a 13.4% market share in 2022.

2021-12-29

Shipments of LCD Monitors with Mini LED Backlighting Estimated at Approximately 51,000 units in 2021, Samsung Leads Market Share with 58%, Says TrendForce

High contrast and brightness Mini LED products have been developing aggressively, according to TrendForce’s investigations. Therefore, several LCD monitor brands have launched high-end LCD monitor products with Mini LED backlighting (Mini LED wafer size is defined as between 75~500µm). In 2021, the price of Mini LED-backlit LCD monitors fell between US$2,300 and US$5,000. For example, a 31.5-inch Mini LED backlit model is priced approximately 4 to 8 times that of model of the same size featuring a traditional LED backlight. This is a product that resides at the top of the pyramid. Due to high pricing and its recent introduction, market scale is relatively limited. Total shipments of LCD monitors equipped with Mini LED backlights is estimated at 51,000 units in 2021.

Looking forward to 2022, QD OLED LCD monitors and OLED LCD monitors will join the ranks of products fighting for a share of the high-end LCD monitor market. Mini LED LCD monitor shipments are forecast to reach 65,000 units at most in 2022, or an annual growth rate of 27%.

This year, Samsung was ranked first in market share in terms of Mini LED equipped LCD monitor brands. Its Mini LED LCD monitor targets e-sports players and emphasizes high cost performance, which Samsung has converted into a 58% market share. Dell focuses on professional creators as its main customer base, so its products are designed to meet highly-demanding specifications. Dell takes second place with a market share of 29%. ASUS also specializes in e-sports and comes in third with approximately 12% of the market.

In addition, in terms of the market share of Mini LED backlit LCD monitors based on size, there are currently only three product sizes on the market, 49-inch, 31.5-inch and 27-inch. Samsung has launched an exclusive 49-inch 32:9 model which accounts for the entirety of Samsung’s 58% market share. Both Dell and ASUS have launched 31.5-inch models that account for a 39% market share. Lastly, 27-inch models account for only a 3% market share.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

2021-06-23

Panel Costs Account for More Than 60% of 21.5-inch Monitor Retail Prices, with LCD Monitor Panel Prices Likely to Keep Rising

Given the expected price hike of LCD display panels in 2021 and the high demand for electronic products that has persisted since last year due to the stay-at-home economy, various IT product suppliers are under tremendous stress from not only the enormous number of client orders, but also surging quotes from panel manufacturers. And LCD monitor manufacturers are no exception.

According to TrendForce’s investigations into monitor pricing, the cost of the LCD panel typically accounts for about 40-50% of a monitor’s retail prices. Conversely, in the high-end segment, panel costs account for about 30-40% of monitor retail prices due to other factors, such as the inclusion of industrial design and premium components.

Regarding the sales of mainstream products, monitor brands face three different sources of pricing pressure. Put in layman’s terms, these sources are equivalent to taking an SAT, hunting for jobs post-college, and (for middle-aged people) transitioning one’s career after being fired.

Despite ample room for panel prices to change, raising retail prices of monitors remains difficult, and such prices hikes lag far behind the increase of panel costs

More specifically, 27-inch IPS FHD products can be analogized to the SAT, as monitor brands are relatively well-equipped to deal with increases in panel costs for this product category. For the most part, panel costs account for less than 50% of these products’ retail prices in 2021. In other words, since 27-inch IPS FHD monitors are still relatively profitable for monitor brands, brands will attempt to increase the share of these products in their shipment of all product categories.

With regards to 23.8-inch IPS products, monitor brands face pressure that is about equivalent to the job search process that takes place after graduating from college. Panel costs have been accounting for more than 40% of monitor retail prices since February. In view of rising panel costs, this percentage is expected to reach 50-55% in 3Q21, which is approximately the breakeven point for monitor brands.

However, because brands will attempt to maintain a certain level of shipment, 23.8-inch IPS monitors will continue to remain the market mainstream.

On the other hand, brands do not prioritize the sales of 21.5-inch TN products as much as they do the other products. Panel prices for this product category have been rising since 2Q20, and this price hike has been intensifying since 2H20.

Entering October 2020, panel costs began accounting for a considerable part of retail prices, in turn surpassing 50% in January 2021 and 60% in June 2021. Since panel manufacturers are disinclined to continue supplying 21.5-inch TN panels, the gap between supply and demand will persist, resulting in either an upward trajectory or bullish outlook for panel prices. In other words, the relative high costs of these panels will not only remain unresolved, but also likely worsen going forward.

TrendForce therefore believes that monitor brands may need to package their 21.5-inch TN monitors within bundle sales in order to offset the rising costs of panels. Alternatively, brands may also raise the retail prices of these products by about US$20-30 in order ensure that panel costs account for only about 50% of the monitors’ retail prices.

On the whole, the magnitude of financial losses incurred by monitor brands through price hikes, panel shortages, or the continued sale of 21.5-inch TN monitors will become the key determinant to how monitor brands adjust the volume of other mid-sized and large-sized products within their total monitor shipments.

(Cover image source: Unsplash)

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