4K TV industry chain ready to go

Under the vigorous promotion of the terminal color TV manufacturers, the 4K TV market in 2013 has dramatically increased in size, and has become a “new darling” for color TV manufacturers to increase profits and upgrade technology. However, the lack of 4K technical standards, lack of ultra-high definition sources, and high prices have restricted the rapid development of the industry. According to industry experts, 4K TVs are expected to become popular within 3 years as the price of LCD panels is reduced and industrial support is gradually improved.

Shipments will reach 330,000 units in 2013

At CES 2013, 4K TVs shined. After six months of market development, 4K TV has gradually become one of the hottest products in the color TV market. According to incomplete statistics, there are currently about 9 mainstream color TV brands that have launched more than 15 series and nearly 40 models of 4K ultra high definition televisions. In 2013, not only Changhong, TCL, Skyworth, Konka, Hisense and other domestic color TV brands will use 4K TV as the main product. Sony, LG and other foreign brands also hope to use the 4K TV's east wind to inject new vitality into the TV industry.

According to the data of China Yikang monitoring, the proportion of 4K TV market in 2012 was 0.0028%. In the first quarter of 2013, the proportion of 4K TV market grew by nearly 15 times, reaching 0.0415%. It is estimated that 4K TV shipments in China will reach 330,000 units in 2013, accounting for about 65% of the global 4K TV shipments.

Chen Bingfeng, marketing director of TCL Group Brand Management Center, told reporters: “1080P replaced 720P TV products took less than 3 years, and now TV technology upgrades quickly, and the time for 4K to replace 1080P will be shorter. We expect 2016 4K TV out. The volume of goods will reach 2.67 million units. For the color TV market, 4K TV will occupy a large market share. Undoubtedly, TCL is very optimistic about the future prospects of 4K TV."

Lin Hongyi, deputy general manager of Konka’s Multimedia Division, told reporters in an interview earlier: “In 2013, Konka’s 4K TV share will reach 10% to 20%. In the large-size area, the 4K TV share is expected to reach 30% to 40%.”

Although the prospects for the development of 4K TV are promising, 4K TVs are still in the initial stage of industrial development and the market sales are not large. The 4K TV group is mainly concentrated in high-income groups. The price threshold is the main reason for the low penetration rate of 4K TVs. According to China Yikang monitoring data, the average price of 4K TVs in the first quarter of 2013 was 27,329 yuan, which is 7 times the average price of the ordinary TV market.

It can be seen that high-resolution 4K TVs look beautiful, but the high selling prices make many consumers discourage, which makes the market performance of 4K TVs high and low. In an interview with reporters, a number of color TV executives said that 4K TV in 2013 was the focus of the company's technology R&D investment, and also the core selling point of the color TV market. However, the degree of actual acceptance of 4K TVs has not been as hot as marketing. After all, the market has just begun to nurture, and it will take some time to become mainstream.

4K industry chain ready to go

Driven by color TV manufacturers, the entire 4K industry has become active. Although a complete industrial chain has not yet been formed, 4K ultra high-definition has been launched in the upstream panel, display terminals, shooting and broadcasting. In 2013, to meet the demand of the terminal market, panel makers all actively started the production of 4K panels, among which the Taiwanese manufacturers in China were the most active, followed by the mainland China panel makers, while the Korean manufacturers and Japanese panel makers were relatively conservative.

NDP Displaysearch Wu Rongbing told reporters: “The demand for 4K TV in 2013 is about 1.1 million units, while the shipment of 4K LCD TV panels is expected to reach 3.3 million. The main suppliers of 4K panels are Huaxing Optronics, Innolux and Friends. Daxing Huaxing Optoelectronics will ship 4K panel shipments to 350,000 this year, and BOE's 4K industry will reach 50,000 to 60,000 by the end of this year."

Peng Shuanglang, general manager of AUO, said in an interview: “The AUO UHD 4K ultra-high-definition TV panel shipped in large quantities in the first quarter, which has improved AUO’s profitability. Because 4K applications have more advantages over 50-inch TVs, Therefore, AUO will focus on the development of high-profile 4K panels from 55 inches to 65 inches. In general, a 65-inch 4K x 2K panel will cost more than two to three 50-inch panels."

For panel makers, mass production of 4K panels is a necessary means to increase profits and enhance panel competitiveness. For terminal manufacturers, BOE, China Star Optoelectronics, Innolux, AUO and other manufacturers have successively mass-produced 4K ultra-high-definition panels. The price of the panel will be gradually reduced, and the cost of the whole machine will also drop. This will make 4K ultra high-definition television will gradually get rid of high barriers and accelerate market penetration.

In addition to panel makers, chip makers and content producers are also rushing to attack and promote the 4K industry. In 2013, Sony focused its attention on the 4K industry and integrated the full-process 4K technology and product lines for shooting, recording, storage, and display, and hoped to reshape the business map through the 4K industry chain. In addition, chip companies are also accelerating their upgrade to 4K to meet the needs of industrial development.

Hard to spread in 3 years

With the rapid development of 4K TV, many research institutions have raised market expectations. According to Zhong Yikang’s forecast, the retail scale of 4K×2K LCD TVs in 2013 will reach 800,000 to 1 million units, and 55-inch TVs will become mainstream products for market development. NDP Displaysearch also expects 4K TVs to increase to 10 million by 2016. However, although 4K TV has become a new hot spot in the color TV market and is sought after by terminal manufacturers, the lack of unity and lack of content in the 4K standard makes it difficult for 4K TV to become mainstream.

Wang Zhiguo, head of the Software Research Institute of Skyworth Group Research Institute, said in an interview with reporters: “At present, 4K content is very scarce. It's just that demonstrating ultra-high-definition photos does not make much sense for the development of 4K TV. Skyworth has established a 4K development strategy. Some methods for solving 4K content are proposed. Skyworth hopes to cooperate with manufacturers in the field of production and broadcasting."

Wu Rongbing said in an interview with reporters: “At present, 4K TV has not yet been fully recognized by consumers, mainly because the viewing experience cannot meet consumer demand. At the same time, 4K video transmission technology needs to be improved. I believe that 4K TV is really in 3 years. The popularity is still more difficult, but we are optimistic about the 4K TV shipments throughout the year and we will increase the 4K TV shipments again in the next quarter."

In fact, for the lack of 4K content, China is also actively promoting the development of 4K standards and exploring the feasibility of opening 4K channels. In order to alleviate the shortage of 4K sources, 2K to 4K technology research and development has also become the highlight of color TV companies 4K war. Yan Fanghong, general manager of TCL Multimedia Global R&D Center China Product Design Center, told reporters: “At this stage, there are relatively few 4K sources, and TCL innovatively developed a 2K to 4K correlation compensation technology. This technology can improve the FHD signal data to real Ultra-high-definition level, image realism of more than 90%, far exceeding the 70% increase in similar products."

In addition, it is worth mentioning that the "4K ultra-high-definition TV purchase standard" release also provides a basis for consumers to buy 4K TV. Industry experts said: "Due to the lack of uniform standards, consumers sometimes buy fake 4K TVs, which greatly undermines consumer confidence in the market. Therefore, it is necessary to standardize the development of the 4K industry."