What will be the focus of competition in the future of LED small-pitch displays?

What will be the focus of competition in the future of LED small-pitch displays?

Currently, China's LED industry is in a stage of vigorous development, with its growth rate significantly higher than the global average. Among them, the growth rate of small-pitch LED displays is the most eye-catching. Relevant data shows that small-pitch LEDs will still be the main force in future LED display market growth. In 2018, the global small-pitch market reached US$1.997 billion, and the average annual compound growth rate from 2018 to 2020 will reach 28%. China's small-pitch market size will reach 8.6 billion yuan, 12.5 billion yuan and 17.7 billion yuan respectively from 2018 to 2020, maintaining a growth rate of more than 40%. With the emergence of small-pitch LED displays, the threshold for LED screen companies has increased significantly, the concentration of China's LED industry has also increased significantly, and competition has become increasingly fierce. As the development of small-pitch displays enters a more mature stage and technology continues to make breakthroughs, what will be the focus of competition for LED small-pitch displays in the future?

Growth is still expected, but competition becomes more intense

In 2019, the issuance of 5G licenses and the launch of 5G packages further accelerated the popularity of related applications. Industry insiders believe that the promotion of 5G networks will bring new opportunities and challenges. For small-pitch LED displays, the application of high-speed networks will generate market demand for high-definition large screens, bringing new business opportunities to small-pitch LED displays. As display effects continue to improve, small-pitch LED displays can achieve 4K and 8K seamless splicing displays, and their advantages will become more prominent. As manufacturing costs decrease, the popularization and application of small-pitch LEDs will further accelerate. In 2020, the holding of large-scale events such as the Tokyo Olympics will provide a demonstration role for 5G+4K/8K applications based on small-pitch LED displays. Industry insiders predict that the small-pitch LED industry will still maintain a sales growth rate of 30% to 50% in the next three years. Teach you the LED spacing selection guide.

With the continuous breakthroughs in display technology, many cross-border giant companies have taken advantage of their own technology and capital advantages to pioneer the small-pitch LED display, Mini LED and Micro LED markets. This shows that the current competition in the field of small-pitch LEDs is more aimed at future layout. In this case, medium and large traditional screen companies have been greatly impacted. Therefore, competition in the LED display industry will "accelerate" in the future. From the perspective of market scale, the annual increment of small-pitch LEDs and the stock level of the overall market continue to expand, posing new challenges to the "service sinking" of traditional display companies. This requires medium and large enterprises to develop more development channels and integrator systems and build a nationwide "consumption perception" network.

Experience competition may become the next theme of small spacing

Industry experts pointed out that in indoor large-screen display applications, the most significant feature is "long-distance viewing". Under this premise, the current technical level is sufficient. Although smaller spacing can bring superior results, considering issues such as cost, process difficulty, and reliability, the new option does not seem to be very attractive. Industry experts believe that this market behavior requires market leading companies to pay more attention to all-round innovation capabilities, from technology and products to system services and solutions. Many small-pitch LED companies have positioned themselves as "system solution providers." In addition to continuous technological upgrades in terminal products, they are also actively deploying software, services, ecology and supporting industry chains to form a new round of "growth hotspots". As the industry's demand for talents changes from technology to management and marketing talents, the LED small-pitch display industry has entered a new "competition cycle." Technological innovation continues, but it is not the only one. Future industry competition will be based on the need to improve user experience and focus more on building brand competitiveness. This may become the main theme of the industry in 2020 and beyond. How much does an indoor LED display cost?

The changing brand landscape tests the industrial chain and service extension capabilities

It has become an important issue to explore new profit margins in the traditional small-pitch LED field. In the context of product homogeneity and increasingly fierce price wars, leading companies have begun to choose industrial chain extension. Some screen companies have transferred huge amounts of independent research and development to the upstream packaging industry to increase the added value of their products. More companies choose to strengthen application-side capacity building, not only providing high-quality display systems, but also forming comprehensive product supporting, integration, and project implementation and maintenance capabilities. This makes the solution an alternative to single-product competition. Medium and large enterprises in the mid-to-high-end market are upgrading to "solutions" through the trend of intelligence and providing a complete "application-centered" customer experience, becoming an important choice for small-pitch LED enterprises in the "new stage of growth" of the industry. This means that enterprises need to have corresponding scale to undertake this full range of integration and service tasks. Therefore, the extension of service capabilities has become "a symbol that distinguishes the leading brands in the small-pitch LED industry from small and medium-sized players." Do you want to know about the top ten LED screen companies in the UAE?

To sum up, the small-pitch LED market in 2020 will be very different from the past. The small-pitch LED display market will enter a new stage of development. The industry rules are constantly upgrading and the market perspectives are changing with each passing day, which will also bring more industry opportunities. While cross-border companies and traditional screen companies are seizing the small-pitch market, they must identify the target market positioning, actively lay out software, services, ecology and supporting industry chains, and improve the industry chain and service extension capabilities. They will become the next step for small-pitch display companies. The key to winning or losing in this round of competition.

Thank you for watching. I hope we can solve your problems. Sostron is a professional LED display manufacturer. We provide all kinds of displays, display leasing and display solutions around the world. If you want to know: Development Trend of LED Full-color Display. Please click read.

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