The price drop of LED electronic screens promotes a surge in market demand

The decline in the price of LED electronic screens has promoted a sharp increase in market demand. LED electronic screens have become a hot topic among businessmen in recent years. Gradually decreasing, now tens of thousands of yuan can make an LED electronic screen to advertise for yourself. In the past, it may have to rely on the LED electronic screen platform of other media companies, but now the high-definition series of LED electronic screens are constantly updated, and customers have more choices. In recent years, the technical development and research of LED electronic screens is very hot, the technical level is becoming more and more advanced, and it is widely used.

In the city, we can often see full-color electronic screens, large electronic advertisements in the center of the square, electronic signs on both sides of the street, and electronic screens are often installed at the gates or halls of hotels. Electronic screens are widely used in Chinese cities. The use has become very common. Looking back on the past 2016, the LED industry was full of turmoil and excitement. On the one hand, the overall performance growth of LED companies represented by listed companies can be expected, and the industry has achieved an overall slight increase and recovery; on the other hand, the industry reshuffle continues to ferment, and the market structure has initially taken shape.

As for the electronic screen industry, due to the growth driven by small-pitch LEDs, the overall market momentum of LED electronic screens is full of bright spots. LED small-pitch LED screens have attracted attention. Affected by the hot growth trend of small-pitch LED electronic screens, the production line of Everlight's small-pitch LED packaging products is fully loaded in the first half of this year; United Huiye Technology covers an area of ​​nearly 240,000 square meters in Daya Bay, Huizhou The modern science and technology park has been officially put into operation in the third quarter of this year. Jingtai Optoelectronics has also put into production small-pitch packaging devices, and has built more than 1,300 fully automatic packaging production lines. After reaching production capacity, it will form a monthly production capacity of 10,000kk.

It is not difficult to see in the first three quarterly reports of LED electronic screen listed companies that most of their revenue and profits come from the development of the international market and the shipment of the small-pitch LED market. Among them, Leyard has achieved a high growth rate of 150%. In the first three quarters of 2016, its small-pitch TV signed a new order of 1.24 billion yuan, an increase of 75% over the same period last year. The gross profit margin of small-pitch TV remained at 39%, and both domestic and foreign small-pitch TVs achieved substantial growth.

Absen launched HDV small-pitch products in 2016, and achieved a contract of about 142 million yuan, an increase of about 60% over the same period of the previous year, accounting for about 46% of the company's total electronic screen orders in the third quarter. In addition, the emergence of high-density small-pitch LED electronic screens has broken the current deadlock in technological breakthroughs in the industry. In addition, it can better integrate with new technologies such as naked-eye 3D, VR/AR, cloud-controlled broadcasting, intelligent applications, and interactive systems. It is a good solution to the serious homogeneity of products in the current industry. Industry insiders believe that with the further decline in the price of small-pitch LED electronic screens, the advantages of small-pitch LEDs will become more and more obvious, and the application field will further expand. In the future, it will fully enter commercial applications such as media, advertising, and theaters. The market size is close to 10 billion, and will maintain rapid growth in the next three years.

Nowadays, with the gradual maturity of LED electronic screen technology, its application range is becoming wider and wider. From the diversification of outdoor display products to the continuous improvement of indoor small-pitch products, enterprises based on LED electronic screens have continuously opened up new application models and application fields, and brought new development opportunities for the LED electronic screen industry. LED small spacing is thriving. Judging from the current market application range, small spacing products have gradually penetrated from high-end government and military departments to commercial fields. According to the latest data, in 2015, the market size of small spacing LED electronic screens in my country was 1.55 billion The market penetration rate is 21.7%. By 2020, the small-pitch LED market size is expected to reach 4.65 billion yuan, a 2-fold increase from 2015, and the penetration rate will reach 36.1%.

After two or three years of brewing and laying the groundwork, small-pitch LEDs are expected to form an explosive point this year and usher in a golden period of development. Today, small spacing has become an unavoidable proposition in the LED electronic screen industry. With the stability of small spacing LED technology and the opening of the market, small spacing LED technology will create great profits for LED electronic screen companies. The overall development of the LED electronic screen industry has injected a strong impetus. The performance of the electronic screen market is outstanding. As an important branch of the LED industry, the LED electronic screen industry has gone through more than 20 years of development in my country.

Although affected by the increasing downward pressure on China's economy and the sluggish global economic growth, the growth rate of the LED electronic screen industry has gradually slowed down. Compared with other LED fields, China's LED electronic screen industry maintained stable growth in 2016. Both growth and net profit have become the "normal" of listed companies. Since the beginning of this year, people in the industry have more or less paid attention to the fact that Sanan, HC Semitek, Nationstar, Mulinsen, and Jingtai LED electronic screen industry's major chip and packaging leaders have made great strides all the way and frequently expanded production. Since November 2015, NationStar has announced three LED packaging expansion plans, similar to Jingtai. In September 2016, the expansion of the first phase of the project was just completed, and then the construction of the second phase of the project began.

The reason for the expansion lies in the growth of the entire electronic screen market. The outbreak of the small-pitch LED market has driven the expansion of packaging companies. bigger and bigger. According to the published 2016 third-quarter performance report, the performance of the 6 listed screen companies are all booming, showing a substantial year-on-year increase. Among them, the net profit of the leading electronic screen companies Leyard and United Huiye Technology in the first three quarters increased by 64.37% and 34.52% year-on-year respectively; the revenue of Aoto Electronics increased by 36.85% year-on-year; 61.10%; Lehman shares increased by 41.89% year-on-year.

In addition, Huacan Optoelectronics, one of the leaders in the LED electronic screen chip business, saw a surge in net profit of 1478.77% in the first three quarters, reaching 140 million. Senior analysts in the industry believe that it is precisely because of the strong demand for downstream LED electronic screens and the room for technological advancement that the consumption of packaging and chips has grown rapidly. In fact, China has become the world's second largest economy and the world's largest trading nation.

Relevant data show that the global LED display market size in 2016 was 16 billion US dollars, and it is estimated that in 2020, the global LED display market size will reach 31 billion US dollars, with huge overseas market space. In parallel with the expansion of production, there is also a "price increase tide" in the LED electronic screen industry. Sanan Optoelectronics raised the price of electronic screen chips by 10% starting in September 2016, followed by a 10% increase in the price of the entire line of electronic screen devices of Nationstar Optoelectronics, a major packaging company.

At the same time, other major domestic LED chip companies and LED screen companies have also raised the prices of LED products one after another. The technology grafting of LED electronic screens and VR/AR, in the face of this new blue ocean, deeply combining VR/AR with small-pitch LED displays, and developing new application models and new profit models in the commercial field is a priority for enterprises Opportunity period for layout. Many LED screen companies are eager to try, among which listed companies Leyard, Lianjian and Absen have made many moves recently.

Cai San of United Huiye Technology once said that the development of the large-screen industry, including small-pitch LEDs, needs the support of the 100-billion-level market behind it. Applying this theory to the present, it can be concluded that VR/AR already has such industrial conditions. Coupled with policy support, it is no wonder that industry giants took the lead.

In recent years, VR/AR technology has swept the entire market. DigCapital, a well-known research and analysis company, predicts that by 2020, the market size of the VR/AR industry will reach US$30 billion and US$120 billion respectively. Obviously, the VR/AR industry will be a market worth hundreds of billions of dollars in the future, and as the most basic and important hardware facility, the electronic screen will also usher in an explosive period, and the small-pitch LED with high-definition picture quality and seamless splicing Electronic screens can undoubtedly greatly improve the user experience of VR products, and seem to have more advantages than OLED, LCD splicing, and DLP splicing. The future of LED electronic screens, such as the launch of small-pitch products, will gradually introduce LED electronic screens into many new market applications.

In addition, for special application fields, a series of special-shaped LED display new products have emerged, such as mantle screens, colored brick screens, curtain screens, and light-transmitting screens, which greatly expand the application range of LED displays. In the development of my country's LED electronic screen industry in recent years, with the mergers and acquisitions among enterprises, the scale effect continues to appear, and the industry structure has been basically clear. The application has also developed relatively mature, and the products are gradually becoming homogeneous. Therefore, LED electronic screen companies began to seek new profit growth points, and continuously innovated by improving the level of research and development, so as to enter new application places and open up new blue ocean markets.

On the basis of technological progress and product innovation, LED electronic screen manufacturers have also begun to explore how to diversify the functions and applications of their products and maximize their value, the most representative of which is the combination of VR/AR technology and LED electronic screen technology . In terms of core technology and product reliability, traditional electronic screen technology is becoming more mature, product reliability and process level have been significantly improved and perfected, and gradually standardized. The core key technology level has also been greatly improved, such as LED display 3D technology, color reproduction, point-by-point correction, high gray scale control, etc. are technical hotspots.

However, the diversified application of electronic screens also faces some challenges. The first is the price. In the category below 60 inches, the price of small-pitch LEDs does not have an advantage, which will form a certain obstacle. On the other hand, the rapid growth of OLED and other emerging technologies has also brought certain threats and impacts to the LED electronic screen industry.

How to maintain a competitive advantage and speed up the development of new products and innovative applications in an environment of intensified competition is worth thinking about for every LED display company. .