Electronic paper is stacking up to be a high-growth market, according to a new report.
Sales of e-paper displays are projected to soar from $431 million this year to $9.6 billion in 2018, market researcher DisplaySearch said Wednesday.
The number of units sold is forecast to grow 22 million this year to 1.8 billion in 2018.
E-books are currently the main use and sales driver for e-paper. Most e-book readers, such as the Amazon Kindle and Sony Reader, use the electrophoretic display technology from E Ink. A few e-readers, such as Fujitsu's Flepia, use a different technology called cholesteric LCD. Fujitsu's device offers a color display but is more expensive than the Kindle or Sony Reader.
"E-paper displays are taking off with consumers due to their low power consumption and ease of reading, especially in sunlight," said Jennifer Colegrove, director of display technologies at DisplaySearch. "In addition, e-paper displays are 'green' because they reduce paper consumption."
The number of e-book readers on the market has risen steadily, starting with one model in 2003, three in 2006, five in 2007, and around 20 this year, notes the report.
Despite the visual appeal of Fujitu's color Flepia e-book reader, DisplaySearch asserts that the high price and technical challenges of color e-books will limit their sales volume until 2011. The more popular electrophoretic display technology is likely to continue to lead the market and generate sales of $5.8 billion in 2018.
But other display technologies are poised for growth, the report said. Electrochromic displays, most commonly used in windows and other glass products, will target the market for smart labels and card displays. By 2013, electrochromic displays will be the leading technology for e-paper displays, DisplaySearch is forecasting.
Another competing technology called MEMS (micro-electro mechanical system) is expected to shift its market from cell phone displays to color and medium-sized e-books over the next few years.
Revenue from sales of flat-panel displays is expected to rise just 1 percent annually from 2008 to 2016, a new report predicts.
That forecast contrasts sharply with the annual growth rate of 20 percent over the past eight years, according to the report released Friday by market researcher NPD's DisplaySearch.
This year's revenue will dive 20 percent over 2008 due to the sluggish economy. Revenue is expected to see a revival in 2010, rising 13 percent over this year.
The overall flat-panel market is expected to grow from $82.6 billion in 2009 to $111.5 billion in 2016, DisplaySearch predicts.
LCD TVs, which make up the largest chunk of the flat-panel market, are expected to see almost no revenue growth through 2016, reaching $37.1 billion in sales that year.
"Price declines and commodity demand for sets smaller than 50 (inches) will constrain sales," DisplaySearch predicts.
The annual growth rate for revenue from desktop monitors and plasma TVs is set to drop 6 percent and 7 percent, respectively, through 2016.
The news isn't all bad, however. Sales of flat-panels for mobile phones are forecast to grow 6 percent a year, grabbing more than $20.8 billion in sales in 2016. Revenue for notebook displays is expected to grow 3 percent each year, hitting nearly $15 billion in 2016.
In DisplaySearch's chart, CAGR stands for compound annual growth rate.
Newer technologies are set to see higher growth rates.
Revenue for OLED TVs, which are thinner and less power-hungry than LCDs, is projected to jump 140 percent each year through 2016. Smaller devices such as Netbooks, e-book readers, and digital photo frames will also see revenue growth.
"Despite the overall flat outlook for (flat-panel displays), there are some bright spots in the long term," David Barnes, vice president of strategic analysis at DisplaySearch, said in a statement. "We expect electrophoretic and OLED technologies will experience more growth than other display technologies will over the long term."
One area not likely to revive is the CRT. DisplaySearch expects that CRT shipments to desktop monitor manufacturers will stop this year.
Revenue for CRTs for televisions is set to plunge 34 percent annually from 2008 to 2016, especially as prices fall for LCD TVs and OLED TVs.
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