LCD TV demand seen growing seven-fold

Global demand will be boosted by an accelerated shift to flat-panel TVs from bulkier cathode ray tube sets, an industry group said.

Global demand for liquid crystal display (LCD) televisions is likely to grow more than seven-fold by 2009, boosted by an accelerated shift to flat-panel TVs from bulkier cathode ray tube sets, an industry group said on Monday.

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The strong growth outlook comes as sharp price falls in LCD and plasma display panels have hit flat-panel makers hard and prompted consolidation.

Annual demand for LCD TVs is expected to reach 59 million units in 2009, up from 7.98 million in 2004, the Japan Electronics and Information Technology Industries Association (JEITA) said.

"In Japan, South Korea, Taiwan, the United States and Western Europe, a shift to flat-panel televisions is expected to pick up pace while demand for colour cathode ray tube televisions will fall steeply," JEITA said in a statement.

"But in Asia excluding Japan, South Korea and Taiwan, Eastern Europe, the Middle East, and Central and South America, demand for cathode ray tube models is likely to remain solid."

Demand for plasma display televisions, which compete with LCD models in the flat-panel TV market, is likely to grow five-fold to 11.6 million units by 2009, JEITA said.

Japanese chips-to-computers conglomerate Fujitsu Ltd said on Sunday it was in talks to sell its loss-making LCD panel operations to Sharp Corp, the world's largest maker of LCD televisions.

Fujitsu also plans to sell a 30.1 per cent stake in its 50-50 plasma panel joint venture to existing partner Hitachi Ltd.

JEITA said demand for DVD players and recorders was likely to grow 27.9 per cent by 2009 to 108.6 million units.