Shipments of 3D-capable large-area TFT LCD panels increased to 5.2 million units in second-quarter 2011, growing by 124% on-quarter, according to the DisplaySearch. Shipments of 3D panels were primarily for LCD TVs, reaching 4.9 million units in the second quarter, or 118% on-quarter growth. The growing shipments pushed the 3D penetration in LCD TV panels from 4.5% in first-quarter 2011 to 9.3% in the second quarter.

According to the DisplaySearch, panel makers are targeting a 53% growth in 3D LCD TV panel shipments for the third quarter as both shutter glass and pattern retarder technologies are maturing and costs continue to fall.

"The LCD TV panel industry has been in oversupply for more than a year, and panel makers are motivated to develop new features like LED and 3D to increase value. Although there are still doubts about whether the market is ready for 3D, 3D penetration is increasing due to falling prices and the ability to produce panels," noted David Hsieh, vice president, Greater China Market, DisplaySearch.

"3D is not only for high-end products; we are starting to see panel makers develop cost-effective 3D, such as 60Hz refresh rate with signal simulation or lower frequency with blinking backlight units, which are targeted at affordability and will be critical in encouraging 3D adoption," he said.

In addition to TV, 3D monitor panel shipments are growing rapidly, from less than 80,000 units in first-quarter 2011 to more than 250,000 in second-quarter 2011, thanks to adoption in gaming and other special application monitors. The mainstream 3D technology currently used in desktop monitors is shutter glass, but pattern retarder and switched cell solutions are emerging rapidly too. Panel makers expect to double shipments in third-quarter 2011.

Volumes of 3D panels for notebook PCs are still relatively small, with less than 100,000 units shipped in second-quarter 2011. However, panel makers are promoting shutter glass, pattern retarder, and autostereoscopic solutions to the gamers and entertainment-focused notebook users. Shipments are expected to grow by 126% in third-quarter 2011.

For LCD TVs, larger panel sizes are seeing faster penetration of 3D, as the benefits are clearer. In 40-inch and larger LCD TV panel shipments, 3D penetration increased from 12.7% in first-quarter 2011 to 21.7% in second-quarter 2011. TV panel makers are aiming to reach 28.2% in third-quarter 2011.

In terms of 3D LCD TV technologies, shutter glass is still dominating the market, with 61% in the second quarter. However, pattern retarder panels are growing rapidly, with 271% on-quarter growth in the second quarter. According to panel makers' production plans, pattern retarder panel shipments will reach those of shutter glass panels in third-quarter 2011.