After the Dragon Boat Festival, the relatively difficult first half of 2020 has passed, ushering in the second half of the year when the market expected by various screen companies is expected to fully recover. In order to meet the market’s upcoming recovery in the second half of the year, the major LED companies have planned in advance and stepped up the layout methodically to pave the way for the next development of the company. In the recent LED display industry chain, all companies have taken actions to join forces to enter the hot industry in order to seize market opportunities.
Demand for small-pitch LED displays continues to be strong
After years of rapid development of small-pitch LED displays, the overall market has begun to enter a period of slow development, and the growth rate tends to stabilize. According to the “Blue Book of China’s LED Display Industry Analysis and Forecast”, the growth rate of the small-pitch LED display market shows a downward trend every year, which means that the golden period of small-pitch is about to pass. However, at the beginning of this year, due to the need for epidemic prevention and control, the demand for small-pitch LED displays in the command and monitoring center and video conference displays was stimulated, prompting screen companies to accelerate the production of small-pitch displays and launch smart conference all-in-ones to meet the needs of the epidemic. During the period, the performance of screen companies increased. According to statistics from relevant agencies, in the first quarter of 2020, the sales of small-pitch LED displays were 1.56 billion yuan, down 14.2% year-on-year, and the sales area was 35.9K square meters, down 3% year-on-year. Although the market demand is declining, compared with other fields, the small-pitch display is an industry that drives performance. This can be seen from the first quarter reports of major screen companies, and the decline in market demand is not large, which attracts many companies Enter the field of small-pitch LED displays, explore the possibility of its own field in the field of small-pitch, derive more small-pitch products, and enrich the types of small-pitch displays.
After entering May, with the resumption of work and classes in my country, the market demand for small pitches has declined, coupled with the recovery of other areas of the LED display market, the growth rate of demand for small pitch LED displays has slowed again. At the beginning of this year, the national strategic “new infrastructure” plan was put on the agenda, and its related high-definition smart terminal display opportunities reignited the enthusiasm of screen companies for small-pitch LED displays. Many companies in the industry said that they are optimistic about new infrastructure opportunities and are waiting for new infrastructure-related policies to be introduced, and hope that through the new infrastructure’s demand for small-pitch LED displays, the impact of the epidemic on their companies in the first half of the year will be mitigated. In the two sessions in May, the country listed new infrastructure as a key national development direction, which means that the country will introduce relevant plans in the second half of the year to promote the construction of new infrastructure, and the LED display projects will increase accordingly. The industry once again ushered in a period of rapid development of small-pitch LED displays.
The packaging side competes for the right to speak for Mini/Micro LED
Benefiting from the new infrastructure, the general trend of the screen enterprise side in the second half of the year is the small-pitch LED display, and the package side due to the serious inventory backlog in the previous two years, the prices of chips and lamp beads continue to be low, and the industry price competition is fierce Eliminating a number of enterprises has increased the concentration of the industry. The lamp beads that have fallen into the price war have low profits. In order to increase corporate profits, many companies choose to enter the small pitch lamp beads. However, even if the small pitch has a strong momentum, the overall market share does not belong to the mainstream, and the increasing number of competing companies has resulted in fierce competition in the field of small pitch lamp beads. In addition, the recent price reduction of small-pitch LED displays has become a trend, and downstream screen companies will also require upstream price reductions in order to reduce costs. Therefore, future small-pitch LED display beads will also face a wave of price cuts.
At this time, the Mini/Micro LED industry is very popular and is known as a new generation of display technology. In addition to the news that Apple will apply MiniLED to mobile terminals, in order to enter Apple’s supply chain and mobile terminal display fields, many packaging manufacturers have Earlier, it started to lay out the Mini/Micro LED display field, and recently it has joined hands with downstream companies to join forces to attack Mini/Micro LED. According to Korean media reports, Apple’s 12.9-inch iPad Pro with Mini LED display has entered the trial production stage; China’s chip giant San’an Optoelectronics is one of Samsung’s important Mini/Micro LED chip suppliers. This year, it also cooperated with TCL Technology. Established a Micro LED joint laboratory; HC Semitek will raise no more than 1.5 billion yuan, of which 1.2 billion will be invested in Mini/Micro LED R&D and manufacturing projects. Through three years of construction, an annual output of 950,000 4-inch Mini/ Micro LED epitaxial wafers; Jucan Optoelectronics plans to raise no more than 1 billion yuan for the expansion and upgrading of high-efficiency LED chips, and believes that new display applications with Mini/Micro LED as the core will become a new round of LED chips The main driving force for growth; National Star Optoelectronics plans to increase the layout and development of emerging areas such as Mini LED, and enhance the company’s core products’ competitiveness and market share in the mid-to-high-end market; Ruifeng Optoelectronics plans to increase the investment of about 700 million yuan Mini/Micro LED and other projects; many of these packaging companies have already achieved mass production of Mini LED products, occupying the right to speak in Mini LED display in advance. Once Mini/Micro LED has matured in the field of mobile terminals, it will attract more packaging and chip companies to the Mini/Micro LED track, and it will also trigger a new round of packaging race.
Creative and cultural display technology is mature and demand is gradually increasing
Some time ago, the “Julang” creative display on the streets of Seoul attracted people to punch in on the street, and it also set off a wave of discussion in the industry. Its creative and immersive LED display mode hit another gap in the LED display application market. According to the information, “Julang” is not a case of application. The design team behind it has successfully applied Chengdu RENHE SHOPPINGMALL human screen interaction, Seoul SHINSEGAEDUTYFREE THE SQUARE upside-down 3D LED display, Seoul Hyundai VR Experience Hall and Gyeonggi Province Cases such as LED MEDIA TOWER are enough to prove the maturity of this technology and application. In the first half of the year, due to the epidemic, the flow of people in major shopping malls and commercial streets decreased, and the turnover decreased. Even global brands are facing the situation of closing foreign stores. Therefore, in order to attract traffic, major shopping malls and commercial streets have introduced various discount activities, and created online celebrity check-in locations to stimulate tourist consumption. At this time, the “Julang” creative display brings a new idea to the terminal, which increases the flow of people with creative display that can interact with human screens and transformable 3D visual effects, thereby driving the growth of the demand for LED creative displays. In addition, the content presentation of creative cultural displays does not rely solely on LED displays, but also depends on the output of the control system and the design of the team. Therefore, the overall market recovery in the second half of the year will also drive the increase in demand for creative cultural displays. Drive the development of LED special-shaped screens and control systems.
In addition, cultural tourism projects in some areas of our country will convey local cultural heritage in the form of performances. LED displays can not only be used as backgrounds to switch various scenes, but also can change positions to add color to cultural performances. Therefore, LED displays are used in cultural performances. The demand for tourism projects has gradually increased. Now the application of “Julang” creative cultural display is mature. In other words, future cultural tourism projects related to LED displays can also apply this technology to enhance the creativity and appreciation of cultural tourism projects. Tourism projects are in a state of gradual increase, which will also drive the demand for creative cultural displays.
The first half of 2020 has ended, and the gradual opening of various events in my country means that major venues have also begun to resume operations, which is conducive to the recovery and start of venue projects. In addition, the major LED display exhibitions have also set their time, and various corporate activities have begun to promote initially. The activities of the LED display industry have begun to return to the right track. At this time, new infrastructure opportunities, Mini/Micro LED and creative cultural displays The screen market will help LED display companies expand their markets, improve corporate performance, and correct the pace of corporate operations.
Post time: Oct-23-2020