EL SEGUNDO, CA – Facing intense competition from LCDs in the consumer and business markets, plasma display panel manufacturers are finding it increasingly difficult to keep pace, according to iSuppli Corp.

Global PDP revenue will rise to $8.6 billion this year, up 11.8% year-over-year. Revenue will swell to $10.2 billion in 2008, up 18.5% from 2007 because of increased production of 50" and larger sizes, says the firm.

But, because of increased competition and continuous price pressure, the market will then undergo a revenue contraction, declining to $8.7 billion by 2011, says iSuppli.

Falling average selling prices are enabling PDPs to enjoy a growth phase in the consumer and business market, says the research firm. However, this growth period will be short-lived, with those same ASP declines causing market revenue to decline starting in 2009, following a peak in 2008.

According to iSuppli, declines in PDP ASPs are being driven by a number of factors, including increased competition forcing panel makers to reduce prices; larger PDP fab sizes boosting production efficiencies; improved manufacturing processes; declining costs for display materials; escalating competition from LCD and microdisplay-based rear-projection technologies.

Unit shipments will reach 23.6 million by 2011, rising at a CAGR of 18.6% from 2006.