Investment points
Small-pitch LED display is gradually becoming the mainstream display technology route, and the future market space is broad.
Compared with the traditional backlight display, the small-pitch LED display has performance advantages in core indicators such as seamless splicing, high brightness intelligent adjustable, high grayscale color performance, high contrast, high response speed, high refresh rate, and color reproduction. Has become the mainstream technology route for a new generation of displays. According to the prediction of CCID, the small-pitch LED self-luminous display has the ability to replace liquid crystal display, quantum dot display and AMOLED display when mature, and the industry has great potential for development. According to AVC data, in 2020, China’s small-pitch LED terminal market sales will be approximately 11.8 billion yuan, a year-on-year increase of 13.8%, and the sales area will be approximately 338.6K square meters, a year-on-year increase of 54.7%. According to the data of TrendForce, the global small-pitch LED display market scale in 2020 will be 27% CAGR from 2020 to 2024, and the small-pitch LED display market is expected to maintain rapid growth. Among them, small-pitch LEDs with P1.2~P1.6 specifications The growth momentum shown is very strong.
The small-pitch LED display market is booming, and the penetration rate continues to increase. In the second half of 2020, as the downstream application market demand continues to pick up, the small-pitch LED display market has also recovered rapidly from the impact of the epidemic. According to the data of Gaogong’s new display, in 2020 H2, especially in 2020 Q4, the domestic small-pitch LED market Production and sales are booming, and some corporate orders are even scheduled to March 2021. Among them, there are many replacement orders for conferences, commercial displays, and some previous indoor projection and LCD splicing. At the same time, there are many New application scenarios such as audio-visual, large-scale conferences, and live events are also constantly expanding. At present, as the main driving force of the future LED display, the overall penetration rate is still at a low level. In 2019, the proportion is less than 20%. The future development potential is sufficient, and the market penetration rate is expected to continue to increase.
The small-pitch LED display gradually reached the sweet spot of price, stimulating the increase in downstream market demand. With the iterative evolution of manufacturing processes, the cost of small-pitch LED products continues to decrease, and the industrialization process has gradually moved towards large-scale commercial use. The development of the small-pitch LED industry follows the “Heitz’s Law”, that is, the cost is reduced by 20% every year, while the brightness is increased by 35%. At present, the manufacturing cost of medium and large-size small-pitch LED backlight displays is close to or lower than that of LCD and OLED displays. According to TrendForce’s forecast, the cost of small-pitch LED displays in 2022 will be lower than that of OLED displays across the board, making them more competitive in the market. Di Zhiku predicts that by 2025, self-luminous small-pitch LEDs will occupy the high-end market in the field of small-size displays. According to IHS Markit’s prediction, the manufacturing cost of small-pitch LED displays in 2026 will drop to 20% of 2019. With the continuous reduction of the cost of fine-pitch LED displays, it is expected to drive the further increase in demand for downstream applications.
Small-pitch LED displays quickly replace projectors and other products, and the application scenarios continue to expand. In the corporate and educational conference room or lecture hall market, small-pitch LED displays are currently undergoing a gradual transition from to G to to B. Manufacturers are actively pushing products to expand channels. Most of the applications are in the high-end commercial display market. The market is divided by display size. LCD display panels below 80 inches are mainly LCD display panels, and projectors and LED displays above 80 inches. As LED displays have more advantages in large sizes, according to TrendForce’s forecast, the future will be more than 100 inches. Part of the projector market will be divided by LED displays.
With the rapid development of the small-pitch LED display market, the local related industry chain is expected to fully benefit. Among them, the market for small-pitch LED display driver chips is expected to benefit from the increase in market demand for small-pitch LED displays and the wave of chip prices driven by the contradiction between supply and demand. Accelerate growth.
Risk warning: market demand is less than expected; enterprise research and development is less than expected; market development is less than expected.
Post time: Sep-02-2021