A leading market research firm has claimed that demand for LCD equipment will recover strongly next year.

Consumers spent record amounts in the market in 2008, but the economic downturn has prompted the largest slump ever, with revenues falling about 50 per cent in 2009.

However, Charles Annis, Vice-President of Manufacturing Research at DisplaySearch, explained that the crystal cycle will pick up, leading to 51 per cent growth in 2010.

"Rapid panel price declines from the end of 2008 through the spring of 2009 helped push demand further than expected," he said.

"Additional strong demand from China is now encouraging panel makers to move forward with capacity expansions in 2010."

Mr Annis' comments appear to be backed up by figures for Q3 2009, which showed that all facets of the LCD equipment market improved for the second successive quarter.

Furthermore, the DisplaySearch supply/demand index fell below ten per cent, while the figure for average industry utilisation increased to 88 per cent.

Although some companies attained profit margins of roughly 15 per cent in the three-month period, the cyclical nature of the industry means the biggest gains are likely to arrive after Q1 2010.

DisplaySearch also noted that China, which is set to become the largest consumer of LCDs, could double its market share by reaching 7.4 per cent in 2012.

LCD technology first became a possibility after the discovery of liquid crystals in 1888.

Source:

LCD equipment market poised for 2010 rebound (09/11/09)

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