Capitalizing on the slim form factor and energy savings potential, the use of LEDs in LCD monitor panels is growing rapidly, according to DisplaySearch.

“Although the desktop monitor market is mature, panel makers and brands are working together to develop new features such as slimness and lower power consumption to rejuvenate the sector,” say the analysts.

Panel makers are using LED backlights in mainstream monitor sizes such as 18.5”, 19”, 22”, and 23”/24”. Although LED backlight penetration in monitor panels was only 1.4% in Q3’09, current panel maker plans indicate that the penetration could reach 22% in Q3’10, assuming adoption by brands.

According to DisplaySearch’s latest Quarterly LED Backlight Panel Shipment & Forecast Report, InnoLux was the leading supplier of LED backlit monitor panels in Q3’09, with 34.4% of unit shipments.

Other panel makers producing such panels include LG Display, AUO, Samsung and CMO. Brands like Samsung, Dell, LG, Acer, Lenovo, BenQ and AOC began launching LED backlit LCD monitors ranging from 18.5” to 24” in Q3’09.

DisplaySearch says in Q1’10, 20”, 23.6” and 27” panels will enter the market. In addition, there are small LCD TV sizes such as 26” that are adapting monitor panels, the LED backlight is also brining the attractions to this segment.

TV brands like Vizio are promoting 18.5” and 23” LCD TV using LED backlit monitor panels, and more brands are expected to join in 2010.

“LEDs have significant advantages over traditional backlights, such as power consumption, slim form factor, and product differentiation,” noted Brian Chen, DisplaySearch Research Director for TFT LCD & Materials and the author of the report.

He claims while there are still some technical concerns such as brightness performance, the LED backlight premium in the LCD monitor is much smaller than LCD TV.

“Meanwhile, the awareness of green technology and energy savings factors in LEDs has generated consumer demand. We are seeing panel makers and also monitor brands promoting LED backlights—resulting in panel makers’ aggressive target for 22% penetration in Q3’10,” he said.

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