The global LCD monitor market is expected to remain flat in 2010 due to weaker-than-expected demand in North America, Europe and China, according to sources with monitor branded vendors.

The global LCD monitor market in 2010 previously was expected to increase by 4-5% on year to reach 170-180 million units amid the launch of Windows 7, rising popularity of LED backlighting, touchscreen functions and 3D features, the sources noted, adding that global LCD monitor shipments totaled 160 million units in 2009.

But demand in the second quarter was weak, and the sluggishness is likely to persist in the third quarter, the sources said.

In Europe, vendors are now now counting on the year-end holiday shopping in the fourth quarter, as they have not seen significant increases in demand for the upcoming peak season later in the third quarter amid plans to increase prices by 7-10% to make up their losses incurred from the depreciation of euro, the sources explained.

Demand in the North America market is expected to be weaker than expected in the third quarter judging from the current order status. But some vendors are still expecting significant sales from back-to-school demand in September, the sources added.

In China, vendors remain conservative about the market demand in the second half of 2010 as there is no obvious seasonal pattern in China's monitor market that they can follow, the sources mentioned.

For example, demand in China's LCD monitor market demand dropped significantly in July 2009 when it was supposed to be a peak season. Players in the end market were then forced to lower prices to generate sales, the sources said.

Vendors have lowered their shipment goals for the China market by 5-10% for 2010 despite significant sales during the Lunar New Year holiday, the sources added.

But monitor demand in the enterprise and procurement segments are still expected to increase 10% in 2010, the sources said.