Opportunities and challenges of the global LED display market in 2022
In 2021, the market demand for LED displays will grow significantly, with the global scale reaching US$6.8 billion, a year-on-year increase of over 23%. It is worth noting that with the expansion of domestic demand, nearly 40% of the world's display screens are in China. Channel marketing has further tapped the market demand, making it the main sales method to replace engineering marketing. In the past two years, the sales of channel LED displays have increased significantly. After the establishment of the channel model, the power of the brand has become prominent. Leading companies such as Leyard and Unilumin can take advantage of their brand to expand their market share. In this context, the industry concentration has further improved, and the market share of the top ten manufacturers will increase to 71% in 2021, and it is expected to continue to grow this year.
At present, there are more and more manufacturers in the direct display field, such as Nationstar, Kaixun, Zhongjing, Zhaochi and other new manufacturers. In the past, Sanan, Huacan, Epistar, Ganzhao and Silan Micro is the main manufacturer. The channel LED display chip market is even worse. Due to its relatively low specification requirements and low entry barriers, market competition is expected to gradually increase.
In the packaging field, in 2021, mainly driven by automotive LEDs, lighting and LED displays, the global LED packaging market will reach US$17.65 billion, a year-on-year increase of 15.4%.Among them, the LED display packaging market size is about 1.7 billion US dollars, accounting for 10% of the entire packaging field. From 2020 to 2021, after experiencing the Sino-US trade friction, the industrial concentration will be further improved, and the industrial concentration of the top 10 enterprises will increase by 10% to 84%. In the future, with the gradual expansion of production capacity, the industrial concentration will be further improved. Manufacturers such as National Star and Jingtai have recently expanded their production capacity.
Driven by terminal demand, the demand for upstream products of LED displays has increased year-on-year. In the chip field, the market size of LED chips will jump to US$3.6 billion in 2021, and the rare 45% growth rate is mainly due to the growth of lighting, automotive LEDs, displays and other fields. Among them, the LED display chip market size is close to 700 million US dollars, an increase of nearly 60% year-on-year.Although the shipments of Mini LED display chips were lower than expected, their growth momentum was good. According to the statistics of TrendForce, the total shipments of 4-inch Mini LED display epitaxial wafers will increase by nearly 50% in 2021 based on the chip side. MiniLED chips are not only used in the market below P1.0, but also in the high-end market of P1.2 and even P1.5.
The concentration of the LED display chip industry continues to rise, and the market share of the top five manufacturers in 2021 will reach over 90%. With the rapid development of the display chip market in recent years, the number of manufacturers entering this field has gradually increased, and the market competition has intensified.
With the continuous innovation of technology, the small-pitch application field has gradually expanded, and many manufacturers have been attracted to enter the field of LED display. When the MiniLED display technology appeared, new companies such as Zhongqi and Lijingwei also entered the packaging field. Not only that, LED display manufacturers from downstream have also expanded into the packaging field. In the future, after the production of Mini/Micro LED, the original pattern in the packaging field may be broken, and the industry concentration will also be diluted by new entrants.
In the field of LED display driver ICs, both volume and price have risen. In 2021, the LED display driver IC market will exceed US$700 million, a year-on-year increase of nearly 1.2 times, mainly due to the surge in shipments in 2021, which will drive prices up, and IC manufacturers will also become a hot dark horse in the 2021 stock market. At present, driver IC is still a highly concentrated industry, with the top five manufacturers accounting for about 89% of the market.
Post time: Jul-01-2022