The core growth of the LED industry mainly comes from the further penetration of small pitch LED display. At first, small pitch LED display mainly replaced indoor DLP and LCD splicing screens. With the decrease in costs, small-pitch displays have penetrated from the professional display field to the broader commercial display field. LED/Micro LED has penetrated into the larger consumer market. In 2019, five key words can be used to summarize the development and changes of China’s small-pitch LED market.

Key word one: Rapid Growth

The advantages of small-pitch LEDs with high brush and high brightness, lifelike picture quality, long lifetime, and seamlessness can meet the application of many occasions. Under its strong offensive, a large number of projectors, DLP wall joints, liquid crystal display agents, and distributors have moved to deploy small-pitch LED products. AVC Cloud Network (AVC) “China Mainland Small Pitch LED Market Research Report in 2019” shows: In 2019, China’s fine pitch market sales were 9,948M yuan, an increase of 45.3% year-on-year, and the sales area was 215.8 K square meters, an increase of 97.4% year-on-year.

Keyword 2: Spacing Upgrade

On the one hand, with the industry’s continuous integration of upstream and downstream resources, technological iterations, and the continuous attention and investment of manufacturers in the traditional display industry, the small-pitch LED market has become more active; on the other hand, consumption continues to upgrade, with more new application scenarios, For example, data centers in the construction of smart cities, telemedicine in smart medical care, and other products with smaller spacing have seen a significant increase in demand. In 2019, the market sales of P1.2 products steadily ranked first, and the sales share of P1.4-1.2 products reached 44.5%, an increase of 5.1 percentage points year-on-year.

Keyword three: Reduced Brand Concentration

The number of brand participation continued to increase, and the share of top brands was diluted. On the one hand, there is no threshold for small-pitch LED technology. On the other hand, the market has expanded significantly, while upstream prices have fallen. This market situation has attracted many companies to enter. According to incomplete statistics, there are more than 500 small-pitch LED brands in the Chinese market. The small-pitch LED industry giants Leyard and Unilumin have long been ranked TOP2 in the industry. With the increase of brands entering the market, the market share of TOP2 sales has been diluted. In 2019 Accounted for 50.5%, a year-on-year decrease of 5.3 percentage points.

Key word four: Falling Prices

On the one hand, upstream prices have fallen, brands have increased, and market competition has been fierce; on the other hand, channels have sunk, low-end markets have expanded, and county and township-level markets are price-sensitive, which has accelerated the decline in small-pitch LED prices. In 19Q4, the average market price of small-pitch LEDs was 45,000 per square meter, a year-on-year decrease of 16.0%.

Keyword five: Technological Breakthrough

The development of 8K+5G technology accelerates the iteration of Mini/Micro LED technology. The promotion of ultra-high-definition displays is an opportunity and a challenge for the development of the LED industry. Only by accelerating the deployment of Micro LED can LED companies seize the blue ocean market. In 2019, various companies began to deploy the Micro LED field:

In 2019, with the joint efforts of the entire industry chain, small-pitch LEDs will maintain steady and high-speed growth. However, the sudden new coronavirus epidemic at the beginning of 2020 will have an important impact on the small-pitch LED market in the first half of the year:

Generally speaking, the first quarter is the off-season of the small-pitch LED industry. Data shows that the first quarter of 2017-2019 sales of small-pitch LEDs accounted for 17%-19% of the whole year. The emergence of the epidemic caused delays in the resumption of factories and difficulties for workers to return to work, which significantly affected the production and supply of products.

The commercial market is obviously affected by the economic situation. With the suspension of enterprises, the survival difficulties of small and medium-sized enterprises and the delay of government project procurement, it is expected that there will be a certain decline in the first quarter. At the same time, marketing and promotion activities have been fully postponed, and corporate/government project budget re-planning will take some time, so there will be no “retaliatory repair” for small-pitch LEDs in the first half of the year.

Strengthen communication between upstream and downstream of the industry chain, enhance confidence, and overcome difficulties together

The impact of the epidemic on the market is only temporary, and the development of enterprises is long-term. During the epidemic, employees and manufacturers should do a good job in epidemic prevention management; communicate with suppliers in real time; provide maximum support to channels; at the same time, fulfill social responsibilities, enhance brand influence, and enhance product innovation. Enhance confidence and win the future.

Challenges and opportunities coexist in the small-pitch LED market in 2020

Although the epidemic has affected companies, there are still opportunities in the challenges. The epidemic has exposed many problems in China’s medical system. The epidemic is expected to further accelerate the process of medical improvement, accelerate the construction of medical big data platforms and the application of telemedicine command centers. At the same time, the construction of smart cities has entered a critical period, and the demand for display screens continues to grow.For more information about Flinky LED display, please follow us on Twitter,Linkedin,Facebook,Instagram,Pinterest,Tumblr and so on!