Samsung and LG TV will see their combined market share rise to 40% in 2015

Local TV manufacturers like Samsung Electronics (SEC) and LG Electronics (LGE) will aim at the combined market share of 40% and try to sell more than 100 million TVs in 2015. Their goal is to secure an indisputable competitive edge in the global TV market by increasing the sales of low-end products while leading the market with premium TVs.

According to industry insiders on December 28, the combined market share of SEC and LGE in 2015 is estimated to be 37%, and their combined sales are estimated to be between 85 million TVs and 90 million TVs. To make their market share reach the 40% mark and sell more than 100 million TVs next year, both SEC and LGE must increase their sales volumes by more than 10%.

A market research firm WitsView forecast that Korea`s TV market share would rise from 37.7% in 2014 to 40.7% in 2015. SEC and LGE are expected to engage in aggressive marketing in a bid to raise their market share.

The market share of Chinese makers and Japanese makers are estimated to be 27.9% and 16.9% respectively in 2015. Chinese TV manufacturers will try to go beyond the domestic market and increase their exports, but meet the strong resistance of Korean makers. WitsView predicted that the size of the TV market in 2015 will be 223 million TVs. If this figure is applied, the TV sales volume of local makers will be about 91 million TVs, short of 100 million.

Another market research firm Display Search estimated the size of the TV market in 2015 to be 247.8 million TVs. If SEC and LGE take up more than 40% of the market, their sales volume will be able to reach 100 million TVs.

Hyundai Securities forecast that SEC and LGE will ship 100 million TVs in 2015. It predicts that local companies will increase their sales volume by close to 20% over this year.

“With the big replacement cycle coming up in the global TV market in 2015, Korean TV makers are planning to engage in aggressive marketing to prepare against China`s chase,” said analyst Kim Dong-won. “Possessed of advantages in the vertical integration of core parts like panels, SEC and LGE will greatly increase TV shipments ranging from low-end to premium TVs to hold Chinese makers in check and secure the initiative in the market.”

SEC`s marketing keyword for 2015 is Quantum Dot (QD). The company will challenge for the No. 1 position in TV sales for 10 consecutive years. It is said to have set the sales target at 60 million TVs. LGE is emphasizing that the ‘real next-generation TV’ is the OLED TV. The company decided to give more choices to consumers by expanding the OLED TV lineup and concentrate on increasing its market share, which has been stagnant for a few years, by greatly increasing the sales of low-end TVs.

Kim Seung-gyu | seung@etnews.com