LED display is a new type of information display medium, which is a flat-panel display screen that controls the display mode of light-emitting diodes. It can be used to display various static information such as text and graphics, and various dynamic information such as animation and video. LED display has the characteristics of high brightness, low power consumption, high cost performance, long service life, stable performance, etc., and is widely used in commercial advertisements, cultural performances, stadiums, news releases, securities trading and other scenes. After the development of China's LED industry in recent years, the industrial chain has become complete. As an important part of the LED industry chain, the LED display industry has a good development prospect.
In recent years, due to the impact of the new crown epidemic, the global raw material supply and demand market has been disordered, which has directly led to a situation in which a large number of raw material prices have risen and IC prices have skyrocketed. The rise in raw material prices has greatly increased the production costs of LED display companies. Some small and medium-sized enterprises have quietly withdrawn, and a large number of businesses have gradually moved closer to the leading companies, which has accelerated the industry reshuffle and promoted the further improvement of industry concentration.
According to the data of China Semiconductor Lighting Engineering R&D and Industry Alliance, the market size of China's LED display screen was 108.9 billion yuan in 2019; it will drop to 89.5 billion yuan in 2020 due to the impact of the new crown epidemic. In 2021, with the gradual implementation of China's epidemic prevention and control work, and the domestic epidemic control is better, the LED display industry will gradually recover .More than half of the competition in 2022, the domestic epidemic has repeatedly emerged in the first half of the year, and the development of various industries has been impacted, and the LED display industry is no exception. In the first half of the
year, the entire LED display industry had a severe market, the market was sluggish, and the development trend slowed down. It was very difficult for major companies to move forward in the "epidemic".
Under the predicament, the LED display industry has also achieved fruitful results. LED display companies closely follow the pace of the first year of mass production of Micro LED and Mini LED, and are in full swing to launch new ones again, accelerating the promotion of the two into the general market, leading the industry to gallop. . The prelude to the second half of the year has kicked off, and the LED display industry will surely sweep away the haze of the first half of the year and bring more surprises. The development of things has its own rules to follow, and the development of the LED display industry also has rules to follow. According to the seasonal characteristics of the Chinese market in the past, the first quarter shipments were the lowest, and the fourth quarter of each year was the highest. The Chinese market has a relatively high share in the world, and the overall global market follows China's seasonal laws. According to the data, in the first quarter of 2022, due to seasonal troughs and epidemic prevention and control restrictions, China's market share dropped from 64.8% in the fourth quarter of last year to 53.2% in the first quarter of 2022.
China's market share will decline in the first quarter of 2022. In addition to seasonal factors, it is also related to the introduction of anti-epidemic policies in various places. Under the epidemic prevention policy, there have been problems such as restricted movement of personnel in the industry, reduced logistics capacity, and increased logistics costs, resulting in longer business processes and order cycles. The transportation channels for completed orders were closed, and the procurement channels for required raw materials and components were broken frequently in March and April. Flexible LED display. As the prevention and control measures are implemented in important cities such as Shenzhen and Shanghai, the transportation of products and parts between these cities and surrounding cities has become difficult, and even if the transportation is completed, installation and commissioning will not be so easy. At the same time,
some government projects and enterprise projects have been tilted towards epidemic prevention as their budgets have been tilted, resulting in repeated reductions in project demand.
Facing the sluggish market conditions and severe market development situation, major LED display manufacturers have passively taken relevant measures to respond to the test of the current situation, in order to survive through the cracks of the enterprise. In order to divide up the market, major LED display manufacturers have made moderate profits in product pricing to attract more customers with preferential prices, but most companies have adopted the method of acquiring customers at low prices, which has led to more and more smoke in the industry price war this year. Intense, almost all major companies are completing orders or clearing inventory at a loss.
With the changes in market demand and the reform of capital rules, new trends have emerged in the IPO journey of LED-related companies.For example, the mass production of Mini LED backlights and displays has increased, the penetration rate of automotive LEDs has continued to increase, and the demand for smart lighting has rapidly expanded. The market output value is expected to grow to US$30.312 billion, with a compound growth rate of 11% from 2021 to 2026.The market segment has broad prospects, and the fields involved in the listing of LED-related companies are gradually covering the blue ocean field in the industrial chain.
The success of the LED display industry in the first half of the year is particularly prominent in the Micro LED and Mini LED series products. Whether it is the launch of new Micro LED and Mini LED products, or the update and maturity of LED chips and packaging technologies, it shows the flexible response of the LED display industry. The situation, the fighting spirit to carry out innovation in all aspects.At the same time, due to the development of smart cars, the area and application functions of in-vehicle displays are gradually expanding. Facing the growing demand of the automotive market, Mini LED products are favored by car manufacturers because of
their high brightness, high reliability, long life, and low power consumption. In June, a number of cars equipped with Mini LED screens were released. In the first half of the year, major LED display companies jumped out of the trough of the slump in the situation, flexibly changed in the predicament, adjusted the direction of power, innovated, injected new "fuel" into the industry, and achieved corner overtaking to drive the industry forward.
The epidemic has created new opportunities and brought new markets for LED displays. At present, LED display companies focus on many fields, such as naked eye 3D, Metaverse, XR virtual shooting, LED movie screen, small spacing, outdoor large screen, event rental, 5G+8K, etc. Under the epidemic, the "home economy" came into being, and it gave birth to new segmented application fields such as conference LED, smart traffic security, and smart education. The more segments of LED displays, the wider the market that the industry can participate in.
Post time: Aug-31-2022