10.10.2008 — LCD TVs will become the largest CE market by 2012 with sales hitting $110.8 billion, says a recent iSuppli report.

If this prediction pans out, worldwide LCD TVs sales will almost double from $61 billion in 2007, according to the report.

"Consumers want their electronics, in good times and in bad," says iSuppli senior analyst Sheri Greenspan.

"Because of this, the consumer-electronics market will continue its incremental growth over the next four years, driven by LCD TVs, along with consumer appliances, digital set-top boxes (STBs), digital still cameras and video game consoles."

Reasons for the potential growth include:

• Global transition to digital broadcast
• Rapidly declining prices
• Consumer preference for HD displays and thin sets

LCD sales rose 2 percent in 2007 and are expected to increase another 6.5 percent in 2008. Quixel Research says LCD sales increased 25 percent in Q2.

iSuppli also says digital settop box revenue will grow to $25.6 billion in 2012, a Compound Annual Growth Rate (CAGR) of 11 percent per year. Greenspan says that growth will be spurred by demand for digital video recording (DVR) services.

"Consumers continue to upgrade their televisions with new premium services, like high definition and Video on Demand (VoD), requiring new STBs," Greenspan says.