The landscape of the global television industry is witnessing a historic shift as Panasonic, once a dominant force in consumer electronics, considers exiting its traditional TV business after 73 years. This development marks the end of an era for the Japanese electronics giant and highlights the dramatic transformation of the global TV market.
Global TV Market Share 2024 (Top Brands):
- Samsung
- TCL
- Hisense
- LG
- Xiaomi
- Skyworth
- Sony
- VIZIO
- Haier
- Philips
The Fall of a Giant
Panasonic's TV business, which began in 1952 with black-and-white televisions, has seen its global market share plummet to a mere 1% in 2024, down from its peak of over 15% in 2010. The company's annual TV shipments have drastically declined from 6.31 million units in 2016 to just 2.02 million units in 2024, reflecting a steep downward trajectory that has forced the company to reevaluate its position in the market.
Panasonic TV Business Decline:
- 2016: 6.31 million units shipped
- 2024: 2.02 million units shipped
- Current global market share: 1.0%
- Current Japan market share: 9.0%
Chinese Brands' Remarkable Rise
The decline of Panasonic coincides with the meteoric rise of Chinese manufacturers. In a striking turn of events, Chinese brands now command 49.9% of Japan's domestic TV market - Panasonic's home turf. Hisense leads with an impressive 40.4% market share, significantly outperforming Sony's 9.7% and Panasonic's 9%. This shift represents a fundamental change in consumer preferences and market dynamics.
Chinese Brands in Japan TV Market:
- Total market share: 49.9%
- Hisense system: 40.4%
- TCL: 9.5%
Strategic Restructuring
Panasonic Holdings is now planning to restructure its home appliance subsidiary, Panasonic Electric, into three separate companies focusing on smart living solutions, air conditioning and food delivery systems, and lighting and electrical engineering. The company aims to increase profits by JPY 150 billion by 2027 and an additional JPY 150 billion by 2029 through this reorganization.
Market Impact and Future Prospects
The potential exit of Panasonic from the TV market could create opportunities for other players, particularly Chinese manufacturers like TCL, which currently handles about 81% of Panasonic's outsourced TV production. The vacuum left by Panasonic in the premium TV segment could be filled by emerging players who have successfully combined competitive pricing with advanced technology.
Technology Evolution and Market Adaptation
Panasonic's decline can be partially attributed to its strategic missteps, particularly its heavy investment in plasma display technology when the market was shifting towards LCD. This technological bet, combined with increasing competition from more cost-effective manufacturers, has led to the company's current position of considering a complete exit from the TV business.