IDC estimated the total size of the computer display market to be around 7.7 million units in 2011, with a 4.2 million market for stand-alone displays (that is, those not sold as a PC bundle by an OEM). In monetary terms, the Indian display market was estimated to be worth Rs 2,350 crore last year.
In 2012 the number of stand-alone units sold is expected to touch 5 million, while the total number of units is expected to be 7.9 million; this growth in stand-alone sales—17 percent—is the highest growth projected among all stand-alone IT accessories and peripherals.
“Though new technologies are emerging, they are not being disruptive, and the market will grow faster than the DIY market and assembler market because the new technologies are constantly driving customers to upgrade and replace,” reasons Ramprasad Lakshminarayan, GM, Channel Business, Fujitsu India.
In 2011 as many as 15 major players competed for mind space and market share in the segment. Apart from specialized display players such as Samsung, LG, Viewsonic, AOC, Kobian and Philips (through MMD), PC OEMs such as Asus, Acer, Dell, HCL and Fujitsu also are fighting for market share. Other PC OEMs (such as HP and Lenovo) do not position their products in the stand-alone space, but are offering monitors to their partners to protect their turf. There are also new players (including Beetel, Intex, Moser Baer and iBall) which have strong channel connect.
LED replacing LCD
Most monitor makers say that their LED monitor shipments have surpassed their LCD shipments during H22011. They report that LCD shipments today account for just 20-30 percent of their total shipments. The prices of LED monitors are now 10-20 percent more than those of LCD monitors. Says Ajay Sharma, Country Head, Viewsonic India, “We feel that by the end of the year the prices will be on par, which would mean that few vendors will carry LCD monitors.”
“LED displays are superior for many reasons. Most importantly, they offer better contrast, and are sharper as they offer a wider color range when RGB-LED backlighting is used,” says Sanjoy Bhattacharya, GM, Sales & Marketing, IT Products, LG Electronics. “In addition, they offer 20-30 percent better power savings compared to LCD monitors, and are far more reliable.” This reliability is prompting monitor vendors to offer a 3-year warranty on LED displays.
Monitor makers have issued matrices which say that within 3-6 months of usage LED monitors offer enough power savings compared to LCD monitors to negate the price difference of a few hundred rupees. LEDs also create less environmental pollution on disposal compared to CCFL backlit LCDs.
“Thinner products are more efficient, space-saving and aesthetic. LED monitors can be extremely slim, and in our new product lines we have some screens less than a centimeter in thickness,” says Saurav Grover, Sales Head, Monitor Business, AOC India.
Market research firm Display Research has indicated that the contract pricing for LED displays would be cheaper than for LCD by H22012.
In 2011, the 18.5”/19” monitors were the most in demand, and it is expected that in India there will be a shift to the larger 20” monitors during the current year. Remarks Saji Kumar, Director, Product Development, Acer India, “Last year the 18.5” was the highest in demand with a market share of about 45 percent followed by the 15.6” with a market share of approximately 30 percent. At present 20” displays have around 25 percent market share.”
Gautam Raj, Proprietor, GK Sales Corp, Guwahati, offers more insight. “Affordability is the most important factor that defines spikes and dips in the sales of IT peripherals. We have seen that value-conscious buyers who may have spent extra bucks to buy a larger screen chose to budget for a smaller screen while buying a new PC during the HDD shortage as the disk drive accounted for a larger portion of the price. Once HDD prices drop, we will expect bigger sales of the larger screens.”
While monitor makers carry models that have 22”, 24”, 25” and 27” screens, most makers do not see volumes picking up for screens larger than 24” this year.
3D focus
Monitor makers are viewing the 3D monitor market with a lot of interest. The market size is estimated to be around 3,000 units a month, which is too small for some of the vendors to invest in presently.
According to Harish Kumar RP, CEO, Bengaluru-based Connoisseur Electronics, “The 3D monitor market is still limited to gaming and entertainment enthusiasts. 3D gaming is huge abroad, but in India we are still catching on. While there is availability of 3D content, consumers have been reluctant to buy it because of the prohibitive prices.”
There are two types of technologies in 3D monitors—Shutter Glass (SG) and Film-type Patterned Retarder (FPR). SG monitors have been around for three years, and are so far regarded as the industry standard. FPR monitors are expensive, and their street prices are Rs 17,000-19,000 for an 18.5” monitor. Apart from the monitor cost, the customer needs to invest in glasses to experience the content. SG glasses cost Rs 7,000-8,000 depending on the manufacturer. “If you need to play a multi-player 3D game you need to have multiple glasses, which makes it difficult for most consumers,” points out Sharma.
AOC recently launched 3D monitors based on FPR technology at a price of less than Rs 12,000 with the 3D viewing glass price being around Rs 1,500. “We can now build a 3D gaming PC at a lower cost,” says Harish. “Of course, there is still a lot of discussion about SG and FPR, and which is superior.”
Meanwhile Nvidia, which became the pioneer in the 3D gaming market by introducing 3D Vision in 2009, is now facing stiff competition from AMD with its HD3D.
Other trends
Monitor TVs are essentially LED monitors with built-in TV tuner displays. Monitor makers have been reluctant to enter this market because they do not want to compete in a space that is heavily dominated by television vendors and their channels. “The market for TV monitors is less than a percentile. Only LG and AOC are presently focused on this market, and we do not see a huge growth in this space right now,” admits Grover of AOC.
Monitor makers are trying to differentiate their models by adding DVI and HDMI ports. A DVI port model usually costs around Rs 200 more than a model without this port. HDMI is very popular, especially on larger screen models, since these products can be used to connect to home theaters and other electronic devices that support HDMI connectivity.
Another trend being anticipated is that of monitor makers catering to the AIO market. Viewsonic has already launched models, and Asus is expected to offer some soon.
Other segments that monitor vendors see a lot of potential in are CAD/CAM design, medical instrumentation, and print graphics design where color calibration and attention to detail are prime requisites. “We have been addressing this opportunity for long, and with massive IT adoption in niche segments you would see demand growing,” says Bhattacharya. Sharma agrees. “While some of these products are sold through specialized channels, IT channels must not ignore the opportunity.”
