Picture this: LCDs grow 46%

By Staff -- Purchasing, 7/13/2000

Tight supplies and higher prices resulted in the worldwide liquid crystal display (LCD) market growing 46% in 1999 to about $2 billion. Rising demand will mean that LCDs will maintain double-digit growth rates and the market will grow to $4.3 billion by 2006, according to market researcher International Data Corp. (IDC).

Market expansion was primarily due to thin-film transistor (TFT) displays, which grew 74% in 1999. IDC forecasts that the market for TFT panels will grow at a 20.5% annual rate through 2006 as more panels are used in TVs and monitors as well as notebook computers.

A similarly sharp increase in demand is projected for midsize panels, largely for use in mobile devices. While large TFT and super twist nematic (STN) panels will likely enjoy an average annual growth rate of 17%, small and midsize panels will continue to see double-digit growth, averaging 11%. IDC says the presence of STN panels in the large market will shrink continuously from 2002 onward due to increasing use of TFT panels in notebook computers.

However, there will be growing demand for STN panels in cellular phones and other handheld devices. STN panels will continue to grow until 2003 or 2004, after which their growth will slow down as their use in cellular phones begins to diminish in favor of TFT panels.