How things Change – Gaming Monitors
Gaming monitors have become a big deal, and while expectations around mid-year in 2020 were for a strong 35% y/y growth rate, it looks like those estimates were far exceeded by the end of the year. Those estimates, which were for between 12m and 13m units, are history as the latest tally for gaming monitors indicates that over 18m units were shipped last year, bringing the growth rate to over 100%, with the top three brands, MSI (2377.TT), ASUS (2357.TT) and AOC/Philips (state-owned) all seeing greater than 100% y/y growth in the category.
Gaming monitor, which are loosely defined as monitors with a 100Hz or greater refresh rate, are a subset of the overall monitor segment, which typically thought of as desktop monitors associated with PCs or acting as terminals. Gaming monitors however are designed to give the user a more ‘immersize’ experience and can be quite large and in some cases curved. Relatively ‘typical’ gaming monitors are ~27” and run 4K displays at 120Hz to 144Hz refresh rates and cost between $300 and $500 depending on specs, but the high-end of the gaming monitor spectrum, where typical sizes run between 49” and 55” usually cost between $500 and $3,000 and include all sorts of bells and whistles that gamers appreciate.
The category, which is estimates to grow another 41% this year, is being driven by stay-at-home culture driven by COVID-19, and represents a more profitable segment to brands and panel producers than generic monitors, which are more typically based on PC sales and replacement cycles. While not included in the gaming monitor category, more recently OLED and QD TVs have been cited as part of the gaming monitor market, as the specifications for high-end TV models are at or near gaming specs and provide the added function of acting as a regular TV (monitors typically do not have ‘tuners’ needed to receive TV signals).
That said, panel producers have been shifting production away from LCD TV panel production to ‘IT products’, meaning notebooks and monitors, as they are more profitable segments, which has tightened the TV panel market a bit more than normal. Samsung Display, the leader in monitor panel production, has been reducing its large panel LCD production, and while that plan is temporarily on hold as panel prices spike, those plans will likely allow AU Optronics (AUOTY) and Innolux (3481.TT) to become the leaders in the gaming monitor market this year or next. How sustainable such a high level of demand will be when COVID-19 is under control, but at least for the near-term, the category is of great interest to panel producers and brands.
Gaming monitor, which are loosely defined as monitors with a 100Hz or greater refresh rate, are a subset of the overall monitor segment, which typically thought of as desktop monitors associated with PCs or acting as terminals. Gaming monitors however are designed to give the user a more ‘immersize’ experience and can be quite large and in some cases curved. Relatively ‘typical’ gaming monitors are ~27” and run 4K displays at 120Hz to 144Hz refresh rates and cost between $300 and $500 depending on specs, but the high-end of the gaming monitor spectrum, where typical sizes run between 49” and 55” usually cost between $500 and $3,000 and include all sorts of bells and whistles that gamers appreciate.
The category, which is estimates to grow another 41% this year, is being driven by stay-at-home culture driven by COVID-19, and represents a more profitable segment to brands and panel producers than generic monitors, which are more typically based on PC sales and replacement cycles. While not included in the gaming monitor category, more recently OLED and QD TVs have been cited as part of the gaming monitor market, as the specifications for high-end TV models are at or near gaming specs and provide the added function of acting as a regular TV (monitors typically do not have ‘tuners’ needed to receive TV signals).
That said, panel producers have been shifting production away from LCD TV panel production to ‘IT products’, meaning notebooks and monitors, as they are more profitable segments, which has tightened the TV panel market a bit more than normal. Samsung Display, the leader in monitor panel production, has been reducing its large panel LCD production, and while that plan is temporarily on hold as panel prices spike, those plans will likely allow AU Optronics (AUOTY) and Innolux (3481.TT) to become the leaders in the gaming monitor market this year or next. How sustainable such a high level of demand will be when COVID-19 is under control, but at least for the near-term, the category is of great interest to panel producers and brands.
LG 49" Ultrawide Gaming Monitor - Source: LG
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