Plasma display makers, facing intense competition from liquid crystal displays (LCDs), will likely see their panel revenue start declining from 2009 on falling prices, US research firm iSuppli Corp said.

Global plasma display panel (PDP) revenue will rise to $8.6 billion this year, up 12 percent from 2006, and reach a peak of $10.2 billion in 2008, iSuppli said in a report.

But annual plasma revenue will then contract to $8.7 billion by 2011, despite growing unit shipments, as makers slash screen prices due to competition with LCD and other technologies.

Supply has been tight in the PDP market as many manufacturers scaled back production earlier this year under the onslaught of LCD televisions. After losing a price battle with LCDs in the 40-inch-and-larger TV market, plasma makers' hopes hinge on a shift of consumer preferences to the 50-inch and larger TV sets.

Japan's Matsushita Electric Industrial Co is the world's biggest maker of PDPs with a 31.5 percent market share in the first quarter, followed by South Korean rivals LG Electronics Inc. and Samsung SDI Co. -Reuters