New Opportunity For Micro LED Displays Replace LCD Digital Signage Markets
Recently, LG announced its plans to initially implement the next-generation display technology Micro LED in signage, leveraging its commercial advantages in terms of yield and price. This signifies a further expansion of the application scope of Micro LED, extending beyond current implementations such as AR glasses, watches, car displays, and TV applications to encompass large-scale integration into commercial display fields like digital signage!
It has been reported that LG has continued its expansion in the field of Micro LED this year, introducing a range of Micro LED products including Micro LED TVs and all-in-one conference machines, as well as acquiring patents related to Micro LED technology. Recently, LG unveiled "LG MAGNIT," a 272-inch Micro LED sign boasting an impressive 8K resolution (7680×4320). This marks the first time that LG Electronics has introduced a product featuring an 8K resolution using Micro LED technology.
The source also indicated that the cost of Micro LED digital signage is four times higher than that of OLED, thus its feasibility for future implementation remains uncertain. It has been reported that LG has applied Micro LED technology to digital signage, while Samsung is exploring its potential use in small-scale advertising displays.
As widely acknowledged, Micro LED is renowned as the ultimate LED display technology due to its unparalleled advantages including high luminosity, self-illumination capability, seamless splicing potential, and low power consumption. Consequently, Micro LED holds immense promise with an anticipated surge in consumer market demand reaching trillions in the future. Nevertheless, the current cost remains prohibitively high while ensuring stable yield during large-scale transfer processes poses a challenge. Thus, it will take some time before the market experiences true exponential growth. LG's recent announcement regarding its application of Micro LED in digital signage undoubtedly serves as a catalyst for further commercialization of this cutting-edge technology. Moreover, significant breakthroughs are also expected for small and medium-sized applications of Micro LED.
01. The development of digital signage across various display technologies.
The digital signage is a cutting-edge display device that has emerged as a novel medium in prominent public spaces such as large shopping malls, supermarkets, hotel lobbies, restaurants, and cinemas. Through the utilization of large-screen terminal displays, it enables businesses to disseminate real-time business, financial or entertainment information to cater to people's audio-visual needs. It has been dubbed the "fifth media" following print media, radio, television and the Internet. Key products encompass interactive electronic whiteboards, LCD and LED video walls, commercial televisions and advertising machines.
According to different technical pathways, digital signage can be categorized into LCD, LED, OLED, projector, and Micro LED technologies. Currently, LCD digital signage is predominantly utilized while projector products are relatively scarce. OLED technology is in competition with both LCD and LED technologies. It is anticipated that the future development of digital signage will gravitate towards Micro LED technology.
The development of LCD digital signage is highly advanced and extensively utilized indoors. However, due to its lack of self-illumination and low brightness, its outdoor application is subject to certain limitations. In comparison with other display screens, it offers a more affordable price point. With the advent of LED technology, particularly the maturation and advancement of small-pitch technology, LED has partially replaced LCD digital signage in the market. Its display effect surpasses that of LCD.
The OLED digital signage has garnered significant attention due to its self-emitting capability, offering superior display effects compared to LCD and LED technologies. However, challenges such as OLED heating and screen burn-in remain unresolved, thereby impeding market development.
With the advent of Micro LED technology, digital signage has once again reached unprecedented technological heights. The emergence of Micro LED technology has effectively resolved the aforementioned technical challenges, enabling not only a sleeker and lighter design but also delivering superior image quality, brightness, and contrast. Moreover, Micro LED boasts an extended lifespan and enhanced power efficiency... Consequently, it is anticipated to dominate the majority share of the future digital signage market.
02. The digital signage market is projected to achieve a valuation of US$40 billion by 2025.
The digital signage market is experiencing rapid growth and is projected to maintain this momentum in the coming years. In 2019, the global digital signage market reached a valuation of approximately US$24 billion, with expectations for it to expand to US$40 billion by 2025 at a compound annual growth rate of 8.18%.
The current digital signage market is primarily dominated by North America and Europe, with the Asia-Pacific region emerging as the fastest-growing market and expected to become the key growth driver in the coming years. Notably, China's digital signage market exhibits significant demand, projected to witness a year-on-year growth of 11% in 2023 according to joint research industry consulting forecasts.
In August of this year, DISCIEN released information indicating that the global digital signage market size in the first half of this year reached 1891K, representing a YoY growth rate of 5.9%. Among these figures, the overseas market accounted for 74% with a size of 1405K, experiencing a slight YoY decline of 1%; whereas the mainland Chinese market accounted for 26% with a size of 486.4K, witnessing an impressive YoY increase of 32%. The growth in the***. Firstly, substantial orders from the media industry have stimulated demand for digital signage. Secondly, economic recovery has led to increased demand in catering and retail industries compared to last year's same period. In terms of shipping sizes, overseas markets primarily focus on medium and large sizes above 32 inches; meanwhile, domestic market demands are more diversified in terms of size requirements. Its main application fields include media, commercial retail, government (including public places), transportation, education and finance sectors with numerous customization options available.
Currently, the primary application sectors of digital signage encompass retail, catering, healthcare, education, government agencies, transportation, entertainment, and more. The digital signage industry chain constitutes a intricate ecosystem that involves various components such as hardware, software, content creation and services. Each component entails distinct participants and stakeholders necessitating close collaboration and cooperation to deliver enhanced products and services for the digital signage market.
It is worth mentioning that we must also face up to industry problems. The current digital signage market is characterized by serious product homogeneity and fierce price competition. Big brands, especially foreign brands, are reducing their digital signage business in mainland China. Industry insiders analyzed that at present, the digital signage market is highly competitive, and “roll” prices are the norm. The market melee has led to some foreign brands to reduce their digital signage business. For example, LGE reduced its personnel in mainland China’s commercial display-related business last year and went to " "Price increase and profit" route.
The digital signage market holds immense potential, primarily relying on LCD technology at present. However, as technological advancements continue to unfold, OLED, LED, and Micro LED will gradually replace the majority of the LCD market. This transition is an inevitable trend. With market prices becoming increasingly volatile, foreign companies have scaled back their operations in the Chinese market, presenting a valuable opportunity for Chinese enterprises. Nevertheless, the price and reliability of Micro LED remain significant barriers to achieving widespread adoption in this highly competitive landscape.
Links: Indoor Digital Signage | Micro LED Display | Micro LED Videos