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An article to interpret the opportunities and challenges in the LED display market in 2021

 

Abstract: In the future, the emerging application market of LED display screens, in addition to meeting room space and film and television markets, also includes markets such as surveillance rooms, outdoor small-pitch screens, etc. With the decline in costs and technological progress, more application areas will be Developed. However, there are also challenges. Cost reduction and terminal demand minimums complement each other and promote each other.
In 2020, due to the impact of COVID-19, the global LED display market demand has declined significantly, especially in overseas markets such as Europe and the United States. Commercial activities and sports events have decreased significantly, which will affect the terminal demand of LED displays. Mainland China is the world's major LED display production base, and it also includes the middle and upper reaches of the chip, packaging and supporting industries. The sudden decline in overseas demand has affected various domestic industrial links to varying degrees.

In the field of finished display products, market demand fell to a trough in the first half of the year. Starting from the end of 3Q20, demand in the Chinese market has gradually recovered. For the whole year, according to the preliminary statistics of TrendForce, the global market size in 2020 is 5.47 billion U.S. dollars, down 14% year-on-year. In terms of industry concentration, the market share of the eight major manufacturers by 2020 will further increase, reaching 56%. Especially in the channel market, the revenue of leading companies continues to grow.

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From the perspective of spacing, the proportion of small spacing and fine spacing products has further increased, with a total proportion of more than 50%. Among the small-pitch products, in terms of output value, P1.2-P1.6 has the highest proportion of output value, exceeding 40%, followed by P1.7-P2.0 products. Looking forward to 2021, the Chinese market demand is expected to continue the strong state of 4Q20. Although the epidemic situation in the international market continues, the government will also take corresponding measures. The impact on the economy will be lower than last year. Demand is expected to recover. The LED display market is expected to reach 6.13 billion U.S. dollars, a year-on-year increase of 12%.

In the field of driver ICs, the global market will reach 320 million U.S. dollars in 2020, an increase of 6% year-on-year, showing a growth trend against the trend. There are two main reasons. On the one hand, as the resolution increases, the mainstream display pitch continues to shrink, which promotes a steady increase in the demand for display driver ICs; on the other hand, the production capacity of 8-inch wafers is in short supply, and fabs are more inclined. Power device products with higher foundry profit margins have led to a tight supply of driver ICs, leading to an increase in the prices of some driver IC products.
Driver IC is a highly concentrated industry, and the top five manufacturers have a combined market share of more than 90%. Looking forward to 2021, although the production capacity of 8-inch wafer fabs has been expanded, the market demand for power devices such as 5G mobile phones and automobiles is still strong. In addition, the demand for large-size panel driver ICs is also strong. Therefore, the shortage of driver IC production capacity is still difficult to alleviate , IC prices continue to rise, and the market size is expected to further grow to 360 million U.S. dollars, an increase of 13%.

Looking forward to the opportunities for the future development of LED displays, meeting room space and the film and television market are expected to become key application areas for LED displays.
The first is the application of meeting room space. At present, mainstream products include projectors, LED displays and large-size LCD screens. LED displays are mainly used in large-scale meeting rooms, and small-scale meeting rooms have not yet been involved in large-scale.
However, in 2020, many manufacturers have developed LED all-in-one products. LED all-in-ones are expected to replace projectors. The current global demand for conference room projectors is about 5 million units a year.
According to a survey conducted by TrendForce, the sales volume of LED all-in-ones in 2020 has exceeded 2,000 units, showing a rapid growth trend, and there is huge room for growth in the future. The biggest challenge of all-in-one conference machines is the cost issue. The current price is still relatively expensive, and cost reduction requires the support of terminal demand.
The applications in the film and television market mainly include three major applications: movie theater playback, home theater playback, and front-end background boards for film and television shooting. In the cinema market, related products have been launched with good display effects, but the main obstacles are that the cost is too high and the relevant qualifications are difficult to obtain. In the home theater market, the specification requirements are relatively simple, and relevant qualifications are not required. The main challenge is cost. Currently, the price of LED displays used in home theaters is dozens of times the price of high-end projectors.
The front-end background screen of film and television production replaces the traditional green screen market, which can save the cost and time of film and television post-production. The background screen for shooting does not require high spacing. The mainstream spacing of current products is P1.2-P2.5, but the display effect is relatively high, requiring high dynamic range imaging (HDR), high frame refresh rate (HFR) and high High Grayscale, these requirements will increase the overall cost of the display.
In the future, the emerging market for LED display applications, in addition to the above-mentioned conference room space and film and television markets, also includes markets such as surveillance rooms and outdoor small-pitch screens. As costs drop and technology advances, more application areas will be affected. Developed. However, there are also challenges. Cost reduction and terminal demand minimums complement each other and promote each other. How to cultivate and develop emerging markets will be an important topic for the LED display industry in the future.


Post time: Sep-08-2021

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