The core of the growth of the LED industry mainly comes from the further penetration of small-pitch LEDs. At first, small-pitch LEDs mainly replaced indoor DLP and LCD splicing screens. With the cost reduction, small-pitch LEDs have penetrated from professional display to wider commercial display. Mini LED / Micro LED has penetrated into the larger consumer market. In 2019, five keywords can be used to summarize the development and changes of China's small-pitch LED market.
Keyword 1: High-speed growth
The advantages of small pitch LED high brush highlight, vivid picture quality, long life and no stitching, can meet the application of a variety of occasions. Under its powerful offensive, a large number of projections, DLP wall puzzles, LCD display agents, and channel vendors have turned to the layout of small-pitch LED products. AVC's "2019 China Mainland Small Pitch LED Market Research Report" shows that in 2019, China's small pitch market sales were 9948 million yuan, an increase of 45.3% year-on-year, and the sales area was 215.8 K square meters, an increase of 97.4% year-on-year .
Keyword 2: Spacing upgrade
On the one hand, as the industry continues to integrate upstream and downstream resources, technological iterations, and the continuous attention and investment of manufacturers in the traditional display industry, the small-pitch LED market is more active; on the other hand, consumption continues to upgrade and more new application scenarios, For example, data centers in the construction of smart cities, telemedicine in smart medical services, etc. have seen a sharp increase in demand for products with smaller pitches. In 2019, the sales volume of P1.2 products ranked first, and the sales share of P1.4-1.2 products reached 44.5%, an increase of 5.1% year-on-year.
Keyword 3: Reduced brand concentration
The number of brand participation continues to increase, and the share of head brand is diluted. On the one hand, there is no threshold for small-pitch LED technology, on the other hand, the market has expanded significantly, and the upstream price has dropped. This market situation has attracted many companies to enter the market. According to incomplete statistics, there are 500+ small-pitch LED brands in the Chinese market, and the small-pitch LED industry giants Leyard and Unilumin have long been stable in the industry's TOP2. With the increase of brands entering the market, the market share of TOP2 sales has been diluted. It accounted for 50.5%, a year-on-year decrease of 5.3 percentage points.
Keyword 4: price drop
On the one hand, upstream prices have fallen, brands have increased, and market competition is fierce; on the other hand, sinking channels, low-end market expansion, and county- and town-level markets are price-sensitive, accelerating the decline in the price of small-pitch LEDs. The average price of the small-pitch LED market in 19Q4 was 45,000 per square meter, down 16.0% year-on-year.
Keyword 5: technological breakthrough
The development of 8K + 5G technology accelerates the iteration of Mini / Micro LED technology. The promotion of ultra-high-definition display is an opportunity and a challenge to the development of the LED industry. Only by accelerating the layout of Micro LED can LED companies seize the blue ocean market. In 2019, various companies have begun to lay out the Micro LED field:
In 2019, with the joint efforts of the entire industry chain, small-pitch LEDs have maintained steady and high-speed growth, but the sudden new coronavirus epidemic at the beginning of 2020 will have an important impact on the small-pitch LED market in the first half of the year:
Generally speaking, the first quarter is the off-season of the small-pitch LED industry. AVC monitoring data shows that the sales of small-pitch LEDs in the first quarter of 2017-2019 accounted for 17% -19% of the whole year. The emergence of the epidemic has caused delays in the resumption of factory work and the difficulty of returning workers to work, which has significantly affected the production and supply of products.
The commercial market is obviously affected by the economic situation. With the shutdown of enterprises, the survival of SMEs and the delay in government project procurement, it is expected that there will be a certain decline in the first quarter. At the same time, the marketing and promotion activities will be fully postponed, and it will take some time for the corporate / government project budget to be re-planned, so there will be no "revenge repair" for small-pitch LEDs in the first half of the year.
Strengthen communication and enhance confidence in the upstream and downstream of the industrial chain to overcome difficulties together
The impact of the epidemic on the market is only temporary, and the development of the enterprise is long-lasting. During the epidemic situation, the employees and manufacturers should do a good job in epidemic prevention management; communicate with the suppliers in real time; give maximum support to the channels; at the same time, fulfill social responsibilities, enhance brand influence, and enhance product innovation. Increase confidence and win the future.
Challenges and opportunities coexist in the small-pitch LED market in 2020
Although the epidemic has affected enterprises, there are still opportunities in the challenges. The epidemic has exposed many problems in China's medical system. The epidemic is expected to further accelerate the process of medical improvement, accelerate the construction of medical big data platforms and the application of remote medical command centers. At the same time, the construction of smart cities has entered a critical period, and the demand for display screens continues to grow.
Shenzhen Radiant Technology Co., Ltd. has won the love and trust of customers with its smart display. Our company has deep cooperation with several professional small-pitch LED display manufacturers in the industry, and we can get the best in product quality and price. stand by. Moreover, apart from the small pitch, our creative display screens such as transparent LED display screens, flexible LED display screens and electronic screens for casino game consoles all enjoy a high reputation in the domestic and overseas markets. Radiant always adheres to the tenet concept of stability, reliability, professionalism and focus, with the mission of creating value for customers, using its own unique technology and high-quality services to provide customers with increasingly perfect products.
Post time: Apr-09-2020