Consumer demand, focus on green tech to drive LED-backlit LCD-TV growth

El Segundo, Calif. — Due to increasing commitments from the TV supply chain, consumer demand and a greater focus on green technologies, LED-backlit LCD-TV shipments (40 inches or larger) will reach 112.1 million units by 2013, up from 34,000 units in 2008, at a compound annual growth rate (CAGR) of 405 percent, reports iSuppli Corp.

In 2010 alone, shipments of LED-backlit LCD TVs 40-inches in size and larger will increase by a factor of nearly eight, reaching 18.8 million units, up from 2.5 million in 2009, according to the market researcher.

The report, “LED-backlit LCD-TVs Pave the Way for a Green Future“, indicates by 2013, 83.2 percent of 40-inch and larger LCD TVs shipped will use LED backlights, up from just 0.1 percent in 2008 and 6 percent in 2009.


“Panel makers have been investing heavily in LED chipset makers or have been developing their own internal technologies in order to take advantage of what they believe LED-backlit LCD-TVs bring to the table: differentiation, innovation, low power consumption and, of course, the potential to reap the benefits of higher revenue,” said Riddhi Patel, principal analyst for television systems at iSuppli, in a statement.

“LEDs also help to differentiate products from others on store shelves. This will be even more important as the LCD-TV market begins to saturate and the replacement cycle occurring in the United States and elsewhere nears its conclusion,” states Patel.

Beyond differentiation and environmental considerations, perhaps the greatest driving force for LED backlit LCD-TVs is coming from the consumer, according to Patel. Consumers are attracted to LED-backlit LCD-TVs for several reasons, including thinner form factors, improved picture quality, power savings and other green attributes, according to iSuppli.

Still, there are challenges, says iSuppli. The cost of LED backlights is too high for mass consumer adoption at this point, and the TV sets that use LEDs now are priced far more than standard CCFL-based LCD-TVs. Other challenges include an inadequate component supply, a fragmented supply chain, short LED lifetimes and thermal issues, says iSuppli.

However, increasingly stringent government policies are forcing television manufacturers to shift their backlighting to environmentally-friendly technologies that consume less electricity, especially at the larger TV sizes where power is a major concern, says iSuppli.