A welcome change

For over three decades, cathode ray tube (CRT) technology has ruled the PC monitor market. Time has now come for the vintage monitor to retire and pass on the mantle to its successor. As the new generation LCD technology takes centerstage, the shift in trend seems to be inevitable. Globally, LCD displays have already overtaken the marketshare that was once dominated by CRT monitors. In India the transition is estimated to be complete within the next one year.

Thin is in
According to a recent study conducted by IDC India, LCD screens are all set to replace CRTs and take over the latter's marketshare completely by end of this year. As per the report, the overall monitor market in India for 2008 was 6.6 million units. The contribution of LCD monitors was more than 70 percent (4.8 million units), thus recording a growth of 29 percent.

Interestingly, there were only few takers for LCD displays even five years back. But with certain factors coming to play together, the scenario has altered completely. And the trend which was emerging two years back, has reached maturity now. The key driver accelerating this change is the reduced price gap between CRTs and LCDs. “While the price of CRT monitors has remained stable, price of LCDs have dropped significantly over the past one year. This has further fueled the demand for LCD monitors,” observed R Manikandan, Sr GM-Business Solutions, LG Electronics.

According to Mukesh Gupta, Director, TPV Technology, the price drop of TFTs witnessed in H2 FY '09 has boosted its adoption as the gap between CRTs and LCDs reduced largely. As the production capacity of LCDs increased and also the consumption, the panel prices have reduced. This has resulted in the price drop of LCDs.

The increased adoption of LCDs is also visible from the increase in the demand for stand-alone or non-bundled LCD monitors. The ratio stood at 70:30 last year in favor of LCDs. And with the prices of LCDs coming down, the market in India, this year is expected to grow further taking the share of LCD screens to 95 percent compared to only five percent for CRTs.

Why LCD?
The direct and indirect benefits of TFT monitors are much higher than CRTs. LCDs consume less energy than CRTs hence saves power. LCD technology uses less than 1/10 of the energy consumed by CRT technology. LCDs emit less heat and therefore are environment friendly. Further, LCDs occupy less space and as a result, the space or air conditioning requirement goes down saving lot of money for companies. As they release low radiation, LCDs are less harmful for eyes and are ideal for those who need to spend long hours in front of computer screens. All these factors make LCDs more viable for users. Although, it costs a little more than CRTs, it save more money in the long run. In fact the amount of money a LCD monitor saves it enables its buyer to overcome the cost in roughly three years time. Apart from that, LCDs offer better aesthetics thus adding up to the modern lifestyle with its slim and trendy look and design.

The real estate that it occupies is considerably smaller by up to 60 percent, which can translate into serious saving for a new deployment. The power consumption with LCDs would be lower by around 70 percent. The heat generated would be lower by up to 80 percent, which saves on cooling costs as well. The cost of planning for power back-up for a work-space also gets reduced by a considerable amount. With all the above benefits taken into account, the TCO for a typical 17-inch LCD monitor would be lower than that of a comparable CRT over three years. It would be considerably lower considering a lifespan of more than three years.

The enterprise shift
The enterprise customers have been the leaders in adopting LCD screens over CRTs. Now the trend is trickling down to the end user segment as well. Although the transition in enterprise segment is over 90 percent, the remaining 10 percent is yet to convert in this league. Since a lot of these dynamics depend on the economics, the higher price of LCDs has been the main hindrance earlier. “But as the price gap between CRTs and LCDs has reduced comfortably and, we are expecting the remaining 10 percent shift to be completed in approximately six months or so,” said Gautam Ghosh, Country Manager, Viewsonic.

“The TCO of LCDs is much lower and the capital cost can also be overcome in roughly three years time. The calculation is neat and understood by the enterprises,” said Gupta. “Presently the market share for LCDs should be approximately 95 percent. In the next one year, it's going to be 100 percent. In fact we estimate that from Q3 this year it will be completely an LCD dominated market as the production of CRTs will be stopped altogether,” he added.

The enterprise segments that have driven this transition are IT, ITeS and BPO. “Almost all the segments have contributed to this change. The early adopters were in the IT/ITeS space as their business are largely based on RoI per person. Space was at a premium and operations ran virtually round-the-clock. So the TCO story fits them very well,” said Yadav.

Education is another vertical that has been a key driver for this shift. Higher education or technical and management institutes and even the government led education programs (like Sarva Shiksha Abhiyan) primarily are key users of LCD screens. In fact government, both in state and central level are now very keen on computerizing their schools and colleges and this is a sector with huge potential. “Government and BFSI contributed to the mass adoption of LCDs later. With education (both private and government) segment booming, the penetration was popularized further,” Yadav added.

Adoption of LCDs is also higher in the hospitality sector. Airlines, airports, hotels, are places that have completely transformed from using CRTs to LCD monitors. SME is again one segment which is catching up fast. Most of the new purchases in this segment are ruled by LCDs. This segment is going to be the next driver for this shift. And to make the deal affordable for them, principals are giving out various lucrative schemes.

Piyali Guha
(Source: DQ)