CCTV LCD monitors

	The 17in M170CM from mainland China's Zhongshan Lucky displays 1280x1024 pixels at 8ms response time.

Steering to customized selling stocks traditional and emerging markets with competitively priced large-screen models.

China suppliers are confident that the CCTV LCD monitor industry will witness an upturn in 2009 despite slack demand from major markets.

The revenue projection this year is $50 million, up from an estimated $45 million in 2008. To achieve sales goals, companies are taking strategic steps.

Under one measure, makers are turning to domestic buyers and streamlining operations to help buoy the industry. The 2008 Beijing Olympic Games ushered in new customers for local enterprises and stimulated more domestic consumption. China’s Safe City project is also opening up opportunities for surveillance product companies. These developments have reduced suppliers’ dependence on outbound shipments for survival.

Some major players, including Guangdong Stonesonic Digital Technique Co. Ltd and Satow Electronic, began focusing on the domestic market in 2H08. Guangdong Stonesonic has seen its export rate go down from 40 percent in 2H08 to 30 percent at present.

Suppliers are trying to do customized selling to a divided market to boost exports. On one hand are the traditional export destinations such as North America and Western Europe, which have become more price-sensitive due to the recession. China makers are offering these regions surveillance solutions that highlight performance quality at an affordable price. On the other hand are the emerging markets, including Eastern Europe, the Middle East, South America and Southeast Asia, where the economic crisis has been less severe. Buyers there are seen as more adventurous in their decisions and open to new things. Makers are aggressively introducing their products to these destinations.

CRT technology has led the CCTV monitor line in recent years, but suppliers are now seeing a trend toward LCDs. Lower panel cost is encouraging them to invest in larger units with better functionality. LCD models accounted for 42 percent of the total sales volume in 2008, and makers expect them to be the mainstream supply by 2010.

Models from China have 5 to 82in screens. The 19in monitors are gaining market share and are expected to replace the once-popular 17in units. One of the reasons for this is the rapidly decreasing price. Two years ago, a 17in monitor sold for $250. Today, buyers can get a 19in model for that price.

A typical 19in LCD monitor has 1280x1024pixels, a brightness rate of 450cd/m2 and a contrast ratio of 1000:1. Visual angle is 160 degrees and the response time is 8ms. Models of this size have a maximum power of 40W, operating temperature of up to 40 C and humidity rate of 10 to 85 percent. Most have 1 or 2-channel BNC video input and 1-channel VGA input, and support video signals up to 800 TVL. Some have a built-in speaker and an audio input port. Units with all these functions are quoted at about $250.

Most LCD panel vendors are said to be reducing output of smaller displays, including 15 and 17in screens. Samsung and LG are among these. Even so, monitor suppliers can continue to offer products with small screens over the next two years.

The 17in model is now classified as low-end and is priced at about $200. Except for its lower luminance and screen size, the product offers all the standard specifications found in 19in monitors.

High-end products are designed with displays larger than 26in. These have a maximum resolution of 1366x768 or 1920x1080pixels, luminance of 500 to 600cd/m2 and contrast ratio of 1000:1 to 1500:1. Response time is from 8 to 5ms and the visual angle is up to 178 degrees. Maximum power exceeds 150W.

Aside from BNC and VGA input ports, these models are equipped with DVI and component video interfaces, and support up to 1080p resolution. They are quoted at $500.

China makers expect the market to see an influx of large and widescreen monitors in 2009 because of the general shift to bigger LCD panels and better production cost efficiency in widescreen displays.

Although 19in models will not move out of popularity easily, 32 and 37in units are expected to gain a larger share in coming years.

Improvements in design top suppliers’ product development agenda. These include LCD panel burn-in protection, a metal shield to reduce signal interference, a tempered glass screen with anti-glare, and built-in cooling fans to enhance thermal performance.

One of the rising trends is the addition of a DVR and/or quad processor as a built-in function. Quad processor-integrated products support 4 to 8-channel input, quad split, picture-in-picture or PiP and zoom. DVR-integrated models compress files based on MPEG-4 or H.264 standard, offer multiple recording modes and perform remote surveillance via a network.

New combination models are set for release within the year and are foreseen to attract buyers in the small business and DIY markets. Surveillance kits comprising a CCTV camera and monitor are also being marketed.

In view of the general trend for IP networking, some companies are coming up with their own IP-based solutions in combo devices. Guangdong Stonesonic has launched an IP-enhanced model that supports MPEG-4 and H.264 video stream decoding and display, front-end control and system management through an IP network.

The LCD monitor is also a good choice for video wall application, due to its narrow bezel, high definition and better luminance.

Some major players, including Guangdong Stonesonic and Skyworth, have introduced LCD video wall sets with large, multiscreen units.

The LCD panel supply mainly dictates the type of CCTV monitors available in China. Monitor makers and LCD panel vendors have opposite views on what kind of panel best suits the CCTV application. The twisted nematic or TN LCD panel with a 4:3 or 5:4 aspect ratio is the most inexpensive. Monitor makers prefer this as they believe CCTV video signals do not require higher aspect ratios, and common CCTV systems do not need large monitors.

LCD panel providers, on the other hand, are pushing for widescreen panels with a 16:9 or 16:10 ratio. Since these companies also manufacture panels for TVs, it is most cost-efficient for them to produce one type for both home entertainment and CCTV applications.

Even though the demand for widescreen panels is not high in the surveillance sector, monitor makers are forced to upgrade their products due to the diminished output of normal ratio panels. They are adopting widescreens for the 19, 20 and 22in models. Panel providers are adjusting quotes to boost the marketability of widescreens. The cost difference between a normal and a widescreen 19in panel can be as much as $6 to $9.

All high-end LCD monitors have a 16:9 aspect ratio and utilize wide-angle technology, including IPS and MVA. Viewing angles are larger than 170 degrees.

China makers provide mounting kits to serve the various requirements of buyers. Wall, embedded and rack mounts are available, in addition to monitor stands. Most products are compatible with the VESA standard.

The LCD panel accounts for about 70 percent of the cost of a CCTV monitor and directly affects the product price when panel costs fluctuate. A 17in LCD panel ranges from $56 to $60 and a 19in panel is $69 to $75. The costs of these models have gone down 7 and 10 percent, respectively, from 2H08 levels.

Panel vendors said further cuts are only a remote possibility. They are lowering shipments of some product lines to enhance capability in other categories with higher profit margins. At LG, the production share of LCD monitors fell from 26 percent in Q108 to 20 percent in Q4.

The quotes of medium and small LCD panels will be stable in 1H09, according to makers, but those of larger units, particularly 37in and bigger, are expected to decline. CCTV monitors will follow the cost trend of panels.

Among the hundreds of companies in China that can supply CCTV LCD monitors, only about 20 are capable of making the product. The small manufacturing base is classified into three sectors, which are the professional CCTV monitor makers, the suppliers of large home solutions and the IT product experts.

The professional makers, or those specializing in CCTV monitor production, were responsible for diversifying the predominantly CRT industry to LCD. Those in this segment, including Guangdong Stonesonic and Satow, have been in the industry for more than 10 years. The majority can deliver 10,000 to 15,000 LCD monitors per month.

The lucrative security business has also attracted makers of home entertainment devices, including Skyworth and TCL. Backed by their parent companies, suppliers in this sector have strong manufacturing and R&D capability, a mature distribution network and wide brand recall. Some of them eventually formed partnerships with the professional makers.

The IT companies are the new entrants in the line. The shift is a result of intensifying competition in the IT industry and the growing popularity of security products. Makers have ample experience in PC monitors and can easily expand to CCTV application.

Home and public security applications drive the CCTV LCD monitors industry in Taiwan. A selection of basic and multifunction models are available. Since products are aimed at homes, shops and small offices, there is no pressure on suppliers to make larger sizes.

Neotech Photoelectric Inc. offers LCD surveillance monitors, aside from a range of other devices that include DVRs, mobile surveillance kits, cameras and speed domes. Its mainstream monitors are 15 and 17in types. Demand for smaller products prompted the company to develop a 10.4in model, the NT-10L, with basic functions and a display suitable to the home environment.

Among upscale releases, Hi-Sharp Electronics Co. Ltd’s ML22T1 also has a relatively small 22in widescreen LCD monitor with 1680x1050-pixel resolution, user-friendly interface and VESA mounting. It features a touchscreen. The product has an adjustable embedded picture-in-picture function and side-by-side scale mode. Compatible with most CCTV systems, it can function as a public information display.

Most high-priced units have multiple uses. The monitor comes with a built-in camera and digital signage. The latter functions as an information board, advertisement and entertainment display in public areas. The camera transforms the monitor into a surveillance device. Multifunction models usually have touchscreens and easier control interfaces.

Neotech exports 90 percent of its output and maintains production in Taiwan. Hi-Sharp positions itself as a security solutions provider and has acquired ISO 2000 certification for its factory.