The future looks bright for 3DTV as shipments rose 104 percent last quarter.

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Shipments of 3DTV jump by 2 million units as LCD bounced back after a flat period, meaning 3.9 percent of all TV shipped are 3D, according to new DisplaySearch figures.

The figure which includes ‘advanced LED+3D’, as well as 3D LCD TV panel shipments increased to 1.9 million units in Q1 2011, a jump of 104 percent on the previous quarter.

Shipments of shutter glass type 3DTV panel hit over million units, while pattern retarder type 3D TV held its own with 880K.

And this looks to jump further in Q2 with predicted LCD growth of 10 percent rising to 20 percent by 2012. However, 2D is still dominating the market retaining 96.1 percent market share this quarter although this will decline further as 3D gains ground.

The emergence of 3D is playing an important role in LCD’s resurgence, DisplaySearch believes, although it noted several “challenges” to upping the reputation of 3D viewing including dizziness, nuisance glasses and lack of 3D content.

“LCD TV panel makers are leveraging 3D as an important feature to rejuvenate TV market demand, in the hope that 3D provides a new viewing experience for consumers,” noted David Hsieh, VP of the Greater China Market for DisplaySearch.

However,”there are many challenges for the industry in promoting 3D LCD TVs to end users, such as inadequate 3D content, the presence of flicker or crosstalk that can cause dizziness, price, uncomfortable glasses, and confusion about different 3D technologies,” he warned.

Panel manufacturers are aggressively working to further increase 3D TV panel penetration in 2011, targeting 12.3 percent for the year and have continuously guided prices downwards (by over $50) over the past year, according to the research.

“The addition of 3D is attractive to panel makers because the price premium can help them increase average selling prices.