Progress of LED Display Screens by the Conclusion of 2023: A Summary Report
The year 2023 is drawing to a close, marking an extraordinary period characterized by relentless efforts. Despite the increasingly intricate, severe, and uncertain global landscape, numerous local economies have exhibited moderate signs of recovery. Within the LED display industry, steady progress continues in response to the multifaceted and ever-evolving external environment and risk challenges. The resilience and potential demonstrated by LED screen companies have provided robust support for advancing the industry forward. Amidst coexisting new technologies, applications, opportunities, and challenges, LED displays are steadily advancing step by step, instilling high expectations for the future development direction of this sector beyond 2023.
1. The winter season has passed and the break of dawn is approaching.
Since May 2023, the overall trend of LED display exports has been relatively stable. According to customs statistics, the export volume of LED displays in the first three quarters of 2023 reached approximately 7.547 billion yuan, a year-on-year increase of approximately 3.62%. At the same time, sales of small-pitch LED displays in the third quarter of 2023 were close to 4.37 billion, a year-on-year increase of 2.4% and a month-on-month decrease of 1.7%; the shipment area reached 307,000 square meters, a year-on-year increase of 27% and a month-on-month increase of 3.8%. From the cumulative perspective of the first three quarters, sales of small-pitch LED displays in mainland China were 11.70 billion, a year-on-year increase of 1.0%; the shipment area was 808,000 square meters, a year-on-year increase of 23.1%. The LED boom may be approaching dawn.
It is noteworthy that, based on the analysis of industry experts, LED small-pitch splicing has surpassed LCD splicing in terms of both sales and market share within the current large-screen splicing market. Over the years, LCD splicing products have witnessed sluggish growth primarily focused on monitoring and small screen applications. Consequently, the letter distribution market for this technology is expected to exhibit a negative growth trend over the next three years. Conversely, driven by factors such as Micro LED technology advancements, brand recognition, and diverse scene applications, LED small-pitch products are entering a second phase of growth. In the future engineering market, Mini LED micro-pitch products will not merely serve as transitional technologies within TO G TO B markets but rather gradually become dominant solutions—particularly P0.9 products.
Additionally, with the increasing popularity of smartphones, tablets, and other devices, there is a growing market demand in the display industry. The advancements in technologies like AR and VR have further stimulated this demand growth, which is projected to achieve moderate growth by 2024. From an inventory perspective, major chip manufacturers worldwide experienced an inflection point in Q3 indicating a turnaround; meanwhile, passive components, PCBs (printed circuit boards), optical components, and other related sectors have also improved due to the rebound in consumer electronics sales leading to near completion of inventory depletion. In summary, after enduring one to two years of downturns, the LED display industry has essentially reached its "bottom" as evidenced by rival companies' quarterly reports showing signs of recovery. Therefore, it is not advisable to be excessively pessimistic at this time as winter fades away and we await the return of spring.
2.The rapid proliferation of technological advancements is evident across various domains.
From the beginning of 2023 to the present, a multitude of technological innovations have emerged in the product terminals of the LED display industry, showcasing a diverse range of advancements and competing ideas. Firstly, in terms of packaging, COB has established itself as a prominent frontrunner with its first-mover advantage. As an esteemed enterprise and brand in packaging technology, it has successfully penetrated the market and gradually become a crucial trend in the development of micro-pitch LED screens. The camp and scale of related manufacturers are rapidly expanding. Moreover, COB possesses inherent characteristics such as shorter and more streamlined process links. Once breakthroughs are achieved in mass transfer processes and costs, there is potential for widespread adoption. Secondly, Mini/Micro LED display technology and LED virtual shooting have emerged as new drivers for growth in the LED market. Since its introduction in 2021, the Mini LED backlight market has experienced an impressive compound annual growth rate of 50%. Micro LED is anticipated to be extensively utilized once key technologies like mass transfer mature. Additionally, regarding LED virtual photography, apart from its application in film and television fields, cost reduction and efficiency improvement through technical shooting are increasingly being applied to variety shows, live broadcasts, advertising campaigns，and other scenarios.
In addition, based on statistics from the Light-emitting Diode Display Application Branch of the China Optical Optoelectronics Industry Association, there has been a significant shift in market share for indoor and outdoor display products in recent years. The proportion of indoor display products has consistently increased year after year, accounting for 70% of the total product volume throughout the year. Since 2016, small-pitch LED displays have witnessed explosive growth and rapidly emerged as a mainstream product in the display market. Currently, small-pitch products constitute over 40% of the overall indoor and outdoor LED display market. From an application perspective, the current sales pattern in the LED small-pitch market reveals that both channel distribution and industry engineering markets have become increasingly segmented into five distinct parts. The channel market continues to penetrate deeper markets while the industry engineering market is gradually expanding its reach into more specialized segments. This evolving landscape indicates a transition from centralized procurement or application towards segmentation with emerging new scenarios such as XR virtual shooting and LED cinema applications. Over the next five years, it is projected that this market will continue to grow at a rate exceeding 15%, showcasing a direction characterized by diversification and advancement.
3.Seven ministries and commissions have issued assembly orders, pledging favorable prospects for the audio-visual industry.
In mid-December, the Ministry of Industry and Information Technology, along with six other departments, jointly issued the "Guiding Opinions on Accelerating the High-Quality Development of the Audio-Visual Electronics Industry." The objective is to enhance the supply capacity of advanced audio-visual systems, establish a modernized audio-visual electronics industry system, and facilitate seamless internal circulation within this sector. The guiding opinions encompass various aspects such as strategic actions and elevating international development standards. By 2030, it is envisioned that China's audio-visual electronics industry will lead globally in terms of overall strength. By 2027, China's global competitiveness in this field will be significantly bolstered through continuous breakthroughs in key technological innovations, consolidation of industrial foundations, improvement of industrial ecology; ultimately forming an industry characterized by exceptional innovation capabilities, robust industrial resilience, high openness levels and influential brand presence. Moreover, efforts will be made to cultivate numerous new subdivided markets worth billions in value while fostering exemplary cases for audio-visual systems. Additionally targeted support will be provided to nurture specialized "little giant" enterprises and individual champions within the manufacturing industry alongside establishing internationally renowned brands and regionally influential companies. Furthermore,a public service platform leading ecological development shall also be established.
The promulgation of the "Guiding Opinions" holds great significance in expanding emerging display applications and driving industrial technology innovation and invention. The deployment of the eight new types of audio-visual systems is closely linked to the development trajectory of LED technology, which undoubtedly paves the way for advancements in the LED display industry, providing strong reassurance. In light of current opportunities, LED screen companies should expedite their pace of innovation, foster differentiated products, and generate fresh consumer demands. Through technological breakthroughs and talent acquisition, we will continuously introduce high-value LED products and solutions to elevate industry standards, establish a healthy competitive order, cultivate a collaborative ecosystem characterized by co-construction, sharing, and common development. Together with concerted efforts from all stakeholders in the industry, we aim to expand and strengthen our market presence.
The LED industry has faced numerous challenges, but it has persevered and overcome them, like rolling stones up a mountain and surmounting obstacles. In the year ahead, LED professionals will continue to accumulate resilience through their unwavering determination, contributing positive energy for the advancement of the LED display sector. With this momentum, we can confidently anticipate a rise in LED displays by 2024 as we forge ahead and embrace a new blueprint.
In the midst of the 2023 global economic downturn, LED screen companies persistently engage in proactive preparations for future development. Through strategic collaborations, acquisitions, or mergers and acquisitions, they aim to enhance their supply chain efficiency, technological advancements, and human resources allocation while fostering cutting-edge display technologies and applications. As soon as these innovative terminals are introduced into the market and gradually gain consumer recognition, they are anticipated to stimulate the growth of related industrial chains and infuse fresh vitality into the LED display industry. Looking ahead, with an accelerated localization process underway, we eagerly anticipate witnessing domestic manufacturers' diligent efforts bear fruit.
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