Global TV Replacement Cycle Falls Below Seven Years as Households Continue to Replace Older CRT TVs and Upgrade to Larger Flat Panel Sets

Over the past year, the TV replacement cycle decreased on a global scale, from 8.4 to 6.9 years. The annual update of the NPD DisplaySearch Global TV Replacement Study found a variety of reasons for this trend, including declining prices, a wider variety of sizes, and desire for the latest technologies.

Average Age of TVs Replaced/To Be Replaced (in Years)

Source: NPD DisplaySearch/Global TV Replacement Study

The study analyzed the purchase intent of consumers across 14 different markets. The results indicate that in the next year, 31 percent of households are planning to replace an existing TV, while 22 percent are planning to add a new TV.

“The rate of TV replacement varies, but on a global basis, the majority of households are still replacing CRT TVs with flat panel TVs. We are also observing mature markets, such as the U.S., the U.K., and others, replacing their first-generation flat panel TVs,” noted NPD DisplaySearch Research Director, Consumer Insights, Riddhi Patel. “Overall, LCD TVs in the range of 32 to 44 inches are the most popular for planned purchases.”

The most critical driver of TV replacement in nearly all countries is a desire to trade up in size, followed by wanting to own a flat panel TV with improved picture quality. Although price was not among the top three reasons for recent replacements, the study indicates it does have a significant impact on the purchasing decision. Thus, pricing can be a key driver in increasing flat panel TV penetration (by replacing CRTs) and shortening the replacement cycle (by replacing older flat panel sets).

As TV prices fall and profit margins are compressed across the supply chain, the push to introduce new premium features has taken on increased importance. The hope is that these new features, such as 3D and internet connectivity, will drive consumers to replace TVs faster. However, the study results suggest otherwise, as these new features were reported to be only somewhat important in selecting a new TV, and not a strong motivator to upgrade.

“The good news is that a large number of markets still have a long way to go toward replacing all CRTs with flat panel TVs, which should continue to sustain growth, but mostly in emerging markets,” Patel added.

Learn more. For more information about the Global TV Replacement Study, contact Charles Camaroto at 866-444-1411 or email contactnpd@npd.com. Or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan for more information.

 

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