Time is right for Indian flat panels
Mumbai, India - High local demand means the time is right for LCD panel manufacturing to take off in India, says new research from Frost and Sullivan.
With TV sales and the Indian mobile market continuing to grow despite the recession, the need for displays has never been higher. F&S says the total market for LCD TVs and mobile phones is set to grow at a CAGR of 51 percent and 18.4 percent respectively from 2008 to 2010.
During the same period, the total addressable market (representing local production) for LCD TV and mobile phones is expected to grow at a CAGR of 57.8 percent and 17.9 percent respectively.
"India is geared up for LCD panel manufacturing," says Frost & Sullivan Research Analyst Santhosh B Krishnamoorthy. "Increased LCD product line consumption, growth in the electronics industry despite temporary slackening and the expansion of manufacturing industries in India will be strong growth boosters for the Indian LCD panel markets in the next four years."
The evolution of Indian manufacturing is a new trend, with several manufacturers considering India as an export hub for various product lines. Local demand, export prospects, government initiatives, a wide range of applications and low set-up costs during the economic slowdown favor LCD panel manufacturers, making it an ideal time for the LCD panel manufacturing in India.
LCD displays are the solutions to the rising need for lower power-consuming, space-saving, and better displays. LCD has a high penetration rate compared to the traditional display technologies and is here to stay in the market. In India, LCD displays are soon expected to exceed cathode ray tube (CRT) displays in sales. No other Flat Panel Display technology is as price competitive as LCD, which offers better value, paving the way for 'significant opportunities' for LCD panel manufactures in the coming years.
Indigenous LCD panel manufacturers will face stiff competition from established global manufacturers who enjoy higher economies of scale in their manufacturing facilities.
"In this highly competitive market, manufacturing from a still developing ecosystem, the lack of an experienced workforce, and price competition in a fluctuating environment pose challenges," says Krishnamoorthy. "However, local presence and market positioning should be strategically used to establish the industry and overcome challenges.
"Quality products at a low price, a good supply chain, and brand equity are some of the key strategic factors in the LCD panel market in India," adds Krishnamoorthy. "To have an edge over competitors, it is critical for LCD panel manufacturers to provide extremely competitive prices, immediate availability, and effective customer support."
Analysis of the Indian LCD Panel Market is available from Frost and Sullivan.