After a year of weak growth for the LCD TV industry in 2013, worldwide shipment growth has accelerated every quarter in 2014, with total units rising more than 10% in the third quarter. According to DisplaySearch, 2014 LCD TV shipments will reach 223 million units, which is a 7% increase over the previous year on a unit basis, and a 16% increase on an area basis. LCD TV shipments for 2015 are expected to reach 239 million units.

"LCD TV shipments from manufacturers to retailers in the third quarter was stronger than expected in several regions, but especially in North America and Asia-Pacific," said Paul Gagnon, director of TV research for DisplaySearch. "Growth in these regions is driven by a new wave of replacement activity, with North America consumers replacing older flat-panel TVs and consumers in India and other Asia-Pacific countries replacing CRT TVs."

Consumers continue to trade up to larger screen sizes, increasing the average size of LCD TV shipments 5% to 39-inch, which is more than 1.5 inches larger than the previous year. This increase in average size, combined with stronger unit growth, is fueling renewed investment in LCD panel production capacity. Larger sizes have also contributed to revenue growth and have helped to stabilize overall industry prices, on a volume-weighted basis. The shift to larger sizes has also resulted in strong demand for Ultra HD (4K) LCD TVs, which are expected to grow more than 50%, reaching more than 32 million units in 2015.

On-year LCD TV shipments to retailers in North America increased nearly 24% in the third quarter, however, year-to-date growth has so far significantly outpaced sales to consumers, the firm said.