Www.futuresource-consulting.com EMEA QUARTERLY MARKET TRACK – QUARTER 1 2014 May 2014 LARGE FORMAT FLAT PANEL BUSINESS TO BUSINESS MARKET Ben Davis Graham

www.futuresource-consulting.com

EMEA QUARTERLY MARKET TRACK– QUARTER 1 2014

May 2014

LARGE FORMAT FLAT PANEL

BUSINESS TO BUSINESS MARKET

Ben Davis

Graham Cooke

Graham Cooke

<Report Title= "EMEA Quarterly Market Update - Qtr 1 2014 Large Format Flat Panel Business to Business Market March 2013" Region="EMEA" Sector="Commercial Displays" Service="Flat Panel_B2B Sales-In Data" Component ="Quarterly">

Valu

e (

US

$

Bil)

Un

its (

Million

s)

2010 2011 2012 2013 2014 2015 2016 2017 2018 20190

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

0.0

500,000,000.0

1,000,000,000.0

1,500,000,000.0

2,000,000,000.0

2,500,000,000.0

371,001424,204568,339601,646

930,9571,075,6221,086,675

1,234,5431,375,433

1,523,217

Professional Display Value

EMEA B2B LFD DISPLAY MARKET – VOLUME AND VALUE

2 | © 2013 Futuresource Consulting Ltd

Others

Spain

Netherlands

Italy

Russia

France

United Kingdom

Germany

50,000 150,000 250,000 350,000 450,000 550,000Others Spain Netherlands Italy Russia France United King-

domGermany

2016 428524 47485 61402 62309 98607 100356 134499 153485

2015 526311 33869 50849 52575 84075 85690 112526 129748

2014 493829 21094 40039 43045 63494 73317 91020 105122

2013 249171 18136 29772 33597 43630 62743 79269 85335

2013

2014

2015

2016

Unit Sales (Thousands)

KEY COUNTRY PERFORMANCE AND FORECASTS - EMEA



EMEA MARKET BY PRODUCT SEGMENT

High End Product Ranges Lose Share As Customers Trade Down To Mid & Entry Level Solutions

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7%1% 1% 0% 1% 2% 6% 9% 8%

34%

28% 27%

41% 45% 46% 40%39% 41%

45%58% 60%

47% 39% 35% 36% 36% 33%

13% 13% 13% 12% 16% 16% 18% 16% 19%

Videowall

High End

Mid Range

Entry Level/ Prosumer

EMEA Market By Product Segment – 2012/13 | Mid Range product

continues to take market share from High End solutions, the later falling from a 60% share of the total EMEA market in Q3 2012 to 33% in the most recent quarter.

| Mid Range series such as the Samsung “ME” and “MD” lines, and the NEC “V” series have strengthened the Mid Range segment share.

| Entry Level/ Prosumer products have not gained traction as strongly as in the Americas regions with the LG Ez Sign series having limited success to date.

| Videowall solutions continue to gain share as the demand for tiled display walls in retail, corporate, public display and command and control applications grows.

• Transport

• Airport

• Train Statio

n

• Undergroun

d

• Bus Terminal

• On-board

• Retail

• Shopping Centr

e

• Grocery

• Department Store

• Banking

• Specialist

Retailers

• Show Room

• Leisure / Pleasure

• Pubs &

Clubs• Fitness and leisur

e centr

es• Cine

mas

• Restaurant

s

• Casinos & Bowli

ng

• Museums

• Amusemen

t Parks

• Sports

Stadiums

• Racetracks

• Healthcare

• Doctors

Surgery

• Opticians

• Dentist

Surgery

• Hospitals

• Hospitality

• Hotels

• Outdoor

LFD - VERTICAL MARKET SEGMENTATION


DIGITAL SIGNAGE PRESENTATION

MARKETS

* Futuresource – Sub Verticals (Defined by Location Not Usage Model)

• Corporate

• Large • (500+

)• Mediu

m • (100-

499)

• Small • (1-99)

• Governmen

t

• Military

• Rental

• Simulation

• Visualisation

• Control • Room

• Education/

Institutional • Nurse

ry Education

(<5yrs)

• Primary

Education (5-

11yrs)

• Secondary

Education (12-

16yrs)

• Higher

Education

(17+yrs)• House

s Of Worsh

ip

3rd Party Paid For AdvertisingInternal Advertising/Branding

Information ProvisionFID’s

Entertainment Presentation /IWB

Wayfinding Videoconferencing

Control RoomDigital Menu Board

Medical Display/Monitor

USAGE/BUSINESS MODELS

* Please note business models and usage models often blur, it is possible for installations to have a combination of the above

Transport 0.5Hospitality 0.6

Leisure 1.2Education

1.7

Corporate/ Govern-

ment 2.5

Outdoor 2.8

Health Care 2.9

Retail 12.7

EMEA Vertical Market TAM* – M Screens(24.9 M Total)

EMEA 2013 Vertical Market Penetration**

EMEA SIGNAGE DISPLAY – VERTICAL MARKET OPPORTUNITY


Total

Transport

Hospitality

Leisure

Education

Corporate/ Government

Outdoor

Health Care

Retail

7%

54%

14%

13%

4%

5%

1%

2%

8%

*The vertical TAM represents the screen opportunity for professional display products only and does not represent applications where it is anticipated TV Product will always be preferred over a professional grade product and is therefore not a realistic target market for professional product.**The vertical penetration illustrates Futuresource views on penetration of B2B Flat Panel product by vertical application and does not include penetration of consumer TV product for signage purposes

20132014

20152016

20172018

0

1

2

3

4

5

6

0.51 0.69 0.82 0.89 0.99 1.10

1.82.2

2.63.0

3.64.1

Installed base

Annual Sales

Sa

les,

Mil

lio

ns

EMEA SIGNAGE DISPLAY PENETRATION FORECAST

EMEA LFD Install Base In Signage Applications Is Expected To Double To 13.9 M Units By 2014

Signage Display Penetration % - Professional LFD Only*


9%

11%

13%

15%

18%

21%

Leisure 0.1Health Care 0.2

Hospitality 0.2

Corporate/ Govern-

ment 4.7

Education 7.1

EMEA Vertical Market TAM* – M Screens(12.3 M Total)

EMEA 2013 Vertical Market Penetration**

EMEA PRESENTATION DISPLAY – VERTICAL MARKET OPPORTUNITY


Total

Leisure

Health Care

Hospitality

Corporate/ Government

Education

4%

4%

7%

13%

5%

2%

*The vertical TAM represents the screen opportunity for professional display products only and does not represent applications where it is anticipated TV Product will always be preferred over a professional grade product and is therefore not a realistic target market for professional product.**The vertical penetration illustrates Futuresource views on penetration of B2B Flat Panel product by vertical application and does not include penetration of consumer TV product for presentation purposes.

20132014

20152016

20172018

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0.090.24 0.26 0.20 0.24 0.27

0.44

0.73

1.02 1.201.34

1.58

Installed Base

Annual Sales

Sa

les,

Mil

lio

ns

EMEA PRESENTATION DISPLAY PENETRATION FORECAST

EMEA LFD Install Base In Presentation Applications Is Expected To Triple To 4.6M Units By 2014

Presentation Display Penetration % - Professional LFD Only*


4%

6%

8%

10%

11%

13%


With 60 full-time employees delivering in-depth

analysis and forecasts across the entire global value

chain, Futuresource is able to advise on market,

competitive and technological developments,

providing clients with access to the information that

helps produce the best possible results.

Working across the supply chain provides Futuresource

with a deep understanding of the barriers

and drivers that shape the

technology sector, an

ecosystem far larger

than the sum of

its parts.

Overlaying multiple

sector insights,

from hardware

convergence to

content creation

and delivery, is vital

to mapping the future

of the technology sector.

SERVICES DESIGNED FOR DECISION MAKERS

Consumer Electronics

| All leading and emerging product categories across displays, home audio-visual, imaging, mobile communications and computing. 30 developed and emerging countries and regions worldwide.

Entertainment Content & Distribution

| Quantification and independent assessment on the trends and developments across video, music and games content, from packaged media to broadcast to online services.

Education Technology

| Analysis of education technology market trends, technologies and products, vendors, applications and government investments on a global basis.

Print & Imaging

| Tracking professional photo-imaging markets: consumer, business and production print, and the full array of technologies from inkjet, laser, solid ink, dye sublimation, serial impact and production offset.

Professional Displays

| Quarterly tracking services covering projectors and large format flat panels, providing detailed brand share information across 67 countries, with the ability to drill down into key specifications.

Broadcast Equipment

| Covering the broadcast chain from acquisition through to delivery, including professional camcorders, monitors, video servers, routers, multi-viewers, encoders, decoders and transcoders.

Optical Disc Manufacturing

| The world-leading resource for tracking and reporting on the manufacture of recordable and pre-recorded optical media.

Recording Media

| Storage media tracking for external hard drives, flash memory cards/USB and solid state disk across 32 countries.

OUR SECTORS


THE FUTURESOURCEFOCUS

Futuresource is uniquely positioned to

provide a suite of services designed to

support your decision-making. From

bespoke consulting, subscription services

and business intelligence platforms, to

product tracking, price tracking and

research panels, we have it covered.

THE FUTURESOURCE SUITE OF SERVICES

Futuresource analysts combine their expertise and forecasting skills with data drawn from

a wide range of primary research, including interviews with content owners, service

providers, retailers, hardware vendors, technology companies, official bodies and

industry associations.

Background information and supporting data is obtained from a range of secondary

research sources, including trade publications, company financial reports and conference

proceedings, in order to allow data to be further cross-checked and placed within the

wider industry context.

OUR METHODOLOGIES

About Futuresource ConsultingFuturesource Consulting is a specialist research and knowledge-based consulting company with a heritage stretching back to the 1980s.

Its insight and global market coverage are based on informed regional expertise, ensuring its portfolio of world-class clients is fully supported in research, analysis, strategic planning and decision making.

| Consumer Electronics| Print & Imaging| Entertainment Content & Distribution| Education Technology| Optical Disc Manufacturing| Broadcast Equipment| Professional Displays talk to us…

Futuresource Consulting+44 (0)1582 500 [email protected]


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Www.futuresource-consulting.com EMEA QUARTERLY MARKET TRACK – QUARTER 1 2014 May 2014 LARGE FORMAT FLAT PANEL BUSINESS TO BUSINESS MARKET Ben Davis Graham