He market of LED display with pitch below p1.0 accelerates the breakthrough
he market of LED display with pitch below p1.0 accelerates the breakthrough
According to DISCIEN’s “China LED Small Pitch Market Research Report”, in the first half of 2022, in the domestic LED small pitch market, the market share of ultra-fine pitch products with a pitch of less than 1.0 reached more than 8.4% for the first time. The ultra-fine pitch market, represented by government-led command and dispatch and conference applications, is entering a rapid growth track. The market expects that products with a P1.0 distance below the market are eager to sprint “10%” in the second half of the year
High-precision, high-end industry highlights
The development of the domestic small-pitch LED market in the first half of the year is not “ideal”. Under the influence of factors such as the new crown epidemic, relative excess supply in the market, and falling prices, the domestic sales of small-pitch LEDs in the first half of the year were 7.8 billion yuan, a year-on-year increase of 10.2% – this is also the first half of the market in recent years. “Lower” speed.
However, in contrast to the decline in sales growth, the channel market strength, which represents the popularity of the small-pitch LED market, has increased significantly. Especially as leading companies have adopted dual-brand operations, increased channel market support, and the price of mainstream products in the “popular channel market” where the P1.5 to p2.5 spacing is the main product, the price of mainstream products in the channel market has dropped. The proportion even exceeds the traditional industry line market size.
While the products with larger spacing and lower price are shifting to rely more on the channel market, the industry line market of domestic small spacing LED independent brands has been further upgraded. Among them, the further growth of the pitch market below P1.2 and P1.0 is the “core point”:
For example, P1.1 to P1.4 pitch products accounted for 27% of the market sales in the first half of the year, second only to 29.6% of P1.7 to P2.0 products. Industry research believes that the pitch range with P1.2 as the core will have the opportunity to become the segment with the largest proportion of small-pitch LED sales in the future. Especially in recent years, as the p1.2 equal-spacing index gradually cedes the “performance throne” to products with spacing below P1.0, terminal companies intend to promote this spacing index product to “become a popular sub-category”. This resonates with the terminal demand of the indoor display market that increasingly needs a “more refined picture experience”; it also meets the needs of channel companies that need certain performance-based products to create mid-to-high-end solutions.
The development and expansion of the P1.0 pitch and the following product market, which represents the current extreme technical level of the industry, has become a booster for “industry sales increase” – in fact, the small-pitch LED market in the first half of the year showed P1. Products with a pitch of .5 or higher may decline in sales, or do not increase in incremental revenue; products with a pitch of P1.2 or below are the “layered pattern” that is the main force for sales growth.
Purely from the perspective of sales growth, the dependence of the small-pitch LED market on high-precision products has reached its peak in the first half of 2022. Research and analysis also believe that in the future, the small-pitch LED market is likely to be divided into different types of “popular and high-end”, and will develop a completely differentiated development pattern in different market segments.
In the high-end demand market, the spacing below P1.0 is “just in need”
“The small-pitch LED products below P1.0 gradually make up for their ‘most’ significant disadvantages compared with competing products, such as DLP splicing, LCD splicing, conference projection, and large-size LCD displays, in command centers and conference scenarios.”
Among various display technologies, the core disadvantage of LED display is mainly in the pixel pitch. For example, liquid crystal display technology, whether it is a large-size single screen or a splicing product, can easily achieve 4K/8K display, and the pixel pitch is generally below 0.5 mm. DLP splicing products have also realized the replacement of 2K units for 1024*768 units in recent years. The pixel pitch of 0.6-0.7 mm is basically achieved on the 50-60 inch application unit. Even on 80+-inch splicing units, DLP splicing has begun to appear in 4K resolution products, further optimizing the pixel pitch experience of large-sized units. Relatively speaking, for large-size conference and teaching commercial displays, the pixel pitch displayed by the projector is larger – the mainstream 2K resolution is on a 150-inch screen, and the pixel pitch reaches 1.68 mm. However, although the pixel pitch of projection business education applications is large, it has a great advantage of “price cost”.
It can be seen from the above analysis that after the small-pitch LED products enter the era of pitch below 1.0, they will further form a “relative advantage” in resolution. That is to say, the pitch resolution is no less than that of DLP splicing, and it can be narrowed to the same order of magnitude as liquid crystal display, and its resolution is better than that of conventional business education projector products. This change in performance comparison will help small-pitch LEDs replace competing technologies in many scenarios.
Especially in government affairs applications, command and dispatch centers, smart city information centers and other scenarios that mainly pursue high performance rather than cost advantages, ultra-fine pitch LED screens below P1.0 pitch have achieved absolute experience advantages. In the 150-250-inch conference large-screen application, small-pitch products below P1.00 have also become the first choice for “high-end customers”. In addition, ultra-fine pitch LED display products are also actively exploring emerging TOC markets such as private theaters.
Of course, the further popularization of ultra-fine pitch LED display products still faces huge cost pressure – the market problem that the smaller the pitch, the higher the cost, still exists. This is a huge pressure for the expansion of the market scale of products with pitches below P1.0, but from another perspective, it is also conducive to the formation of competitive advantages and market concentration trends in the segmented product lines for industry-leading companies. The product line below the P1.0 pitch is a must for head LED screen companies in many dimensions such as “technical trends, application added value, market increment and brand reputation”.
The Era of “Multiple Plays” in Precise Markets
In the first half of 2022, the small-pitch LED market is a market with clear “pressure points and excitement points”. For example, the products above P1.5 mentioned above are difficult to provide effective sales growth support and the sales of expensive products below P1.0 have reached a new high; low-priced products contribute to popularity in the channel market, and mid-to-high-end technology products are in the brand independent industry market. Contribute more operational added value, etc.
In addition, in the first half of 2022, the small-pitch LED screen market also shows different market patterns “at home and abroad”. On the one hand, the domestic market has the characteristics of early development, more mature market, shrinking blank market, periodic price competition pressure in the industry, and pressure from the impact of the epidemic; on the other hand, the overseas small-pitch LED application market is still “blank-based”. ”, the increment mainly revolves around “hard demand” and is in the initial growth stage of the market. This, combined with the decline in industry supply costs in 2022, will bring a higher ability to confront “market uncertainty” – explore new opportunities in overseas markets. Increment has almost become a “bright spot” shared by domestic small-pitch LED companies in the first half of 2022.
The development of different market segments may be completely different: this tests the “fine management” ability of small-pitch LED enterprises to operate and develop. For example, the sensitivity of the cultural tourism market to the epidemic and the uncertainty of market rhythm are in marked contrast to the rigidity of the market such as the number of dispatching command centers in the process of infrastructure informatization. The high focus on price in the channel and grassroots market is also in stark contrast to the lack of performance in high-end demand…
“It is easy to find different market segments of small-pitch LED screens with diametrically opposed value points, focuses and trends.” This will become more clear and prominent in the first half of 2022. Industry analysts believe that the small-pitch LED screen market has reached a new era in which it is necessary to be more subdivided and emphasize multiple ways of playing.
To sum up, the small-pitch LED industry in the first half of 2022 will be characterized by further breakthroughs in the high-end market, further popularization of low-end and mid-end markets, a strong rebound in overseas markets, and an increasingly refined and diversified market structure. The industry shows the characteristics of higher maturity, the market share continues to be concentrated to the top brands, and it is gradually entering a new growth stage with equal emphasis on “quantity and quality”.