CHINA – It can be seen from the recent relevant survey data that the sudden new coronary pneumonia epidemic has had a serious impact on the domestic economy. In the first quarter, domestic GDP fell by 6.8% year-on-year, and most of industries have suffered varying degrees of loss. As a result, the sales of small-pitch LED display screens in the first quarter of 2020 was 1.56 billion yuan, down 14.2% year-on-year, and the sales area was 35.9K square meters, down 3% year-on-year. It is easy to be radical at high places, and reflect at low places. The data reveals that it is not a simple “economic” crisis. Behind them are some problems faced by the entire LED display industry, which may trigger a more intense industry reshuffle and brand pattern. Profound adjustment.
More details from GTEK-AOTO (http://www.aotogtek.com):
- Market erosion and anti-erosion intensify competition
At present, with the increasing number of brands entering the small-pitch market, and the increase in the small-pitch LED display market is not evenly distributed, resulting in erosion and anti-erosion in the market, the most obvious is security monitoring and command dispatch display market and projector video conference display market. After the market of enterprises originally in this field is eroded, these enterprises will also enter this industry in order to survive and adapt to market demand.
The specific performance is as follows: First, the companies of traditional LED display has mature technical reserves and strong R&D capabilities, and the business direction is expanding from the traditional professional display field to the commercial field and the home field; Second, the traditional DLP companies are The echelon represented, using COB technology as a breakthrough, penetrated into the LED display market to maintain the original market position; Finally, echelons represented by traditional LCD companies, such as Hikvision and Dahua of security, rely on the security surveillance field for many years. Deep cultivation, brand influence and original market channel advantages have developed rapidly after entering the field of LED small pitch, seizing a large market share. Obviously, internally, the technology upgrade of small-pitch LED products remains unchanged, and externally, the market environment faced by small-pitch LED companies has changed largely.
Industry sources pointed out, “Although the market growth rate is high, it cannot keep up with the growth rate of the participants.” In the 2.0 era of the small-pitch LED industry, this change in external structure is obviously more important than the change in the internal structure of traditional manufacturers. As cross-border enterprises and traditional screen companies continue to tap the small-pitch market, find the target market positioning, actively deploy in the software, services, ecology and supporting industrial chain, improve the industrial chain and service extension capabilities, will become the key to the success of the enterprise of small-pitch displays in the next round of competition. It is foreseeable that the competition pattern of head brands will change dramatically in 2020. The small-pitch LED display is ushering in the era of blooming flowers, and the introduction of new competition, whether from the perspective of technological innovation or industrial model changes Positive.
- The contradiction between supply and demand will escalate
In recent years, with the continuous increase in market demand and the deepening of the strategic layout to expand into new markets, small-pitch LED displays are in the period of accelerating the replacement of DLP and LCD splicing screens in the monitoring market, but due to the impact of the epidemic in the first quarter Logistics is blocked; On the demand side, bidding is suspended or postponed, and the project is delayed, which resulting in negative growth in the first quarter. But at the same time, the epidemic also stimulated the market demand for small-pitch LED displays in remote meetings, telemedicine, and remote monitoring. Although the data showed a negative growth, the overall market was better than expected in the first quarter.
2020 is the year China proposes to actively expand domestic demand, stabilize external demand, and accelerate the construction of major projects. All regions are also actively responding. At the same time, with the arrival of big data, use big data to promote the economy, The coordinated development of politics and culture is getting more and more attention from government departments, so the command monitoring and data operation center project in 2020 will still drive the growth of the small-pitch LED market, which also should be the opportunities for international brands to come in.
But in reality, the market capacity of the small-pitch LED market is becoming saturated. This epidemic is an opportunity and a challenge. The epidemic may become a catalyst, prompting the early arrival of the price reduction of LED small-pitch displays. During the epidemic, the demand for small-pitch LED displays increased due to the epidemic. With the end of the epidemic and the restoration of the order of life, the demand will slowly decline. The global epidemic situation is still not well resolved. The global market will be severely hindered. When China domestic demand cannot be pulled, the overall market is sluggish, excessive output during the epidemic period, and the short-distance viewing LED display market cannot be consumed in a short period of time. There is a problem of excessive production capacity.
- The constant battle for small-pitch LED display technology
Due to the impact of the epidemic, indoor control, high-end conferences, medical display and other fields were once hot, making small-pitch LED displays a hot “fried chicken”, and display companies have invested more time in research and development to expand the market Most LED companies have significantly increased their investment in small-pitch LED display screens, and have actively researched and developed small-pitch LED display screens, prompting further maturity and improvement of small-pitch LED display products. Therefore, from the perspective of product specifications, the pitch of small-pitch LEDs will continue to narrow, and with the further development of display technology, the future Mini/MicroLED will become the current small-pitch LED display, and the future small-pitch LED displays will become the current conventional display, new technology will slowly replace the heat of small-pitch LED display.
Today, the small-pitch LED industry has entered an unprecedented “technology diffusion period”, including the latest Mini LED, Micro LED technology, COB technology, etc. are all spreading. Changes in the supply side have also led to differences in the competitive landscape. To stand out among a group of traditional display companies and emerging competitors, small-pitch LED companies need more diversified development, that is, technology diversification, product diversification, scene diversification, solutions are diverse.
“Squats and long jumps are always accompanied.” In summary, the epidemic has accelerated the internal restructuring of the small-pitch LED industry in 2020: price adjustments, rich product categories, further technological breakthroughs, changes in expansion rhythm, and related asset bubbles, etc., but it is worthy of recognition that the current LED small-pitch display market is still expected in the future, small-pitch LED displays are still the “sweet and sour” of major companies, and display companies need to consider and guard against the outbreak The impact brought by it, seize the opportunity, continue to maintain R&D and innovation, avoid risks, and not blindly expand production, always grasp the new market trends.
