Sales of plasma display panels, or PDPs, have failed to keep pace with those of liquid crystal displays, a market research firm said. As a result, PDP revenue is expected to peak next year, and start dropping in 2009.

Revenue growth in the PDP market so far has been spurred by falling average selling prices, which have boosted shipments, iSuppli said in a statement released Thursday. The price drops have been driven by a number of factors, including increased competition from LCDs, production efficiencies, and declining costs for display materials.

Global PDP revenue is expected to rise to $8.6 billion this year, up 11.8% from $7.7 billion in 2006. Sales are expected to increase again in 2008, swelling to $10.2 billion, up 18.5% from 2007 because of increased production of 50-inch and larger-size panels, iSuppli said. But increased competition and continuing price drops are expected to cause the market to contract to $8.7 billion by 2011.

"In order for plasma manufacturers to continue to be successful in the market, they must weather the storm of LCDs while focusing consumer interest on PDPs' attractive form factors and reasonable prices," Riddhi Patel, principal analyst for television systems at iSuppli, said in a statement.

In the first quarter, Matsushita maintained its leadership position with 31.5% of the PDP market in terms of revenue, followed by LG Electronics, 24.7%; and Samsung SDI, 22.9%. Rounding out the top five are Fujitsu Hitachi Plasma Display, 14%; and Pioneer, 6.8%.

In July, iSuppli reported that LCD TVs were becoming the undisputed champ in the TV market. The major factors behind the rising star were price, coupled with the fact that LCD TVs were perceived by consumers as better at handling digital TV. Manufacturers also were feeding consumers' desire for large TV screens.