The worldwide flat panel market faced a challenging quarter in Q4 2022, losing volume and value year-on-year, according to the latest market tracker from Futuresource Consulting. However, the specialist research firm advises caution when viewing these results solely in a 12-month context.
“At a 3% year-on-year volume contraction and 6% drop in value, the situation looks worrying at first glance,” says Sean Bradley, Senior Market Analyst, Futuresource Consulting. “Yet we still saw the characteristic Q4 increase, albeit not to the same extent as the previous year. The post-COVID boom of 2021 was exceptional, and the market cannot be expected to achieve that standard moving forward.
“What’s happening now is that we’re seeing unit and revenue numbers return to expected levels. When viewed in the context of the last few years, the market is still doing well and continuing to trend upwards at the moment.”
Futuresource notes that the mainstream product segment remains the key contributor to market volumes, achieving a 44% share in Q4, which equates to 2% growth. The video wall and interactive segments both retreated, to 32% and 22% market share respectively, with high brightness accounting for the remaining 2%.
“Despite the videowall segment retreating, the data and conversations we’re having at country level paint a more complex picture,” says Bradley. “We’re seeing a dip in the dominance of China, while a wide range of countries have reported year-on-year increases in demand. Market feedback suggests this is down to some end users looking for cost-effective options over LED.”
Looking out across 2023, Futuresource expects the market to perform well in the first half of the year as remaining budgets are spent, although there will be a general shift to less expensive products. As the latter half of the year unfolds, multiple macro-economic factors will come into play. This will result in tighter budget controls and a drop off in sales.
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