Ultra HD LCD TV shipments reached 1.6 million units in 2013, with nearly one million units alone shipped in the fourth quarter, according to DisplaySearch. Growth was significantly driven by China, although shipments from countries outside of China more than doubled in the fourth quarter as well. China-based vendors comprised 84% of global Ultra HD TV shipments in 2013 and 80% of Ultra HD TV shipments in the fourth quarter.

　　"Ultra HD TV remains on an aggressive growth trajectory, but the expectations of the supply chain are extremely high, relative to observed market performance and current retail pricing levels so far," said Paul Gagnon, director of global TV research for DisplaySearch. "With panel price premiums falling rapidly, and a growing chorus of non-China brands pushing Ultra HD, it is possible for retail set prices to fall quickly to improve volume, but at the expense of profits."

　　The China market and vendors continue to be a rapidly growing part of unit shipments of LCD TVs overall and the driving force for Ultra HD TVs in particular. The majority of Ultra TV volume in China was primarily concentrated in the following sizes: 39-, 50- and 55-inch. Outside of China, Ultra HD TV sizes were heavily focused on the 55- and 65-inch models sold by Sony, Samsung Electronics, and other global vendors, the firm said.

　　"Ultra HD is a very important strategy for most vendors, but particularly those targeting the high-end TV market," Gagnon noted. "In fact, while China brand Skyworth held the top overall Ultra HD TV shipment share worldwide in 2013, Sony maintained the top shipment share of Ultra HD TVs outside of China, which is a position they have held since the second quarter of 2013, but one which will be challenged significantly in 2014 by low-cost competitors from China and elsewhere."

　　The trend toward Ultra HD is an important one for the TV industry, as global shipments of TVs fell 3% in 2013 and even high-growth categories like LCD TV only rose 2% after a 1% decline in 2012. According to Gagnon, "For TV manufacturers, the focus on profitable and growing market segments like Ultra HD, larger screen sizes, and smart TVs is critical in the absence of global market growth."