The market grows steadily in the industry optimistic about the development of LED display

The price of LED display screens continued to decline in 2012, which was a decrease of 15%-20% year-on-year in 2011. The reason for this is that the big manufacturers with the strength hope to eliminate some small and medium-sized manufacturers through price wars. The drop in prices further reduced gross margins. According to industry sources, the current level of channel-based LED electronic display manufacturers' product gross margin has dropped to 10%-15%, and the engineering channel's product gross margin is still above 20%. The industry said that in 2013, LED display will continue to develop and the market scale will grow steadily.

Market scale grows steadily

Judging from the current level of competition in the domestic LED electronic display industry, it is still in the early stage of product competition. The key indicators of competition are: price, quality, delivery time, and after-sales service. At this stage, the price element is particularly prominent. In 2012, the price of LED display screens continued to decline, which fell by 15% to 20% year-on-year. The deep reason for the continued decline in the price of LED display screens is that large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars. The price war has greatly affected the revenue performance of LED electronic display manufacturers, and the LED manufacturers whose revenue will fall back have reached 30% or more.

The price is falling, further reducing the gross margin. Current channel-based LED electronic display manufacturers' product gross margin level has dropped to 10% -15%, engineering channel product gross margin is still above 20%. The profitability of LED electronic display manufacturers is still weakening.

LED electronic display industry has stepped into the integration period, and some small and medium-sized enterprises will gradually be eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to borrow the strength of the capital market and their own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industrial concentration of LED electronic displays will increase rapidly.

As the LED electronic display industry has entered a mature period, the LED electronic display market will maintain a steady growth. Gaogong LED Industry Research Institute (GLII) estimates that the LED electronic display market growth will remain at 10%-20% in the next few years. The future LED electronic display profit growth will mainly come from the traditional inkjet, neon, billboard replacement market, as well as high-definition, 3D, intelligent and other multi-functional high-end led electronic display market.

LED display market future development

At present, although China's LED electronic display is highly competitive, it is still at an early stage. The key indicators of competition are reflected in several aspects such as price, quality, delivery time, and after-sales service. At this stage, the price element is particularly prominent.

LED electronic display industry has stepped into the integration period, and some small and medium-sized enterprises will gradually be eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to borrow the strength of the capital market and their own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industrial concentration of LED electronic displays will increase rapidly.

As the LED electronic display industry has entered a mature period, its market size will maintain a steady growth. According to industry insiders, the LED electronic display market growth will remain at 10%-20% in the next few years. The future LED electronic display profit growth will mainly come from the traditional inkjet, neon, billboard replacement market, as well as high-definition, 3D, intelligent and other multi-functional high-end led electronic display market.

Extend: Four Stages of LED Electronic Display Development

The LED electronic display screen was introduced from abroad in 1997 and then began to sprout in China. It experienced four stages of development from monochrome, dual-color, full-color, and true-color. The specific description of each stage is as follows:

The first generation: monochrome LED electronic display. With single red as the base color, display text and simple patterns are mainly used for notification, notification and passenger flow guidance systems.

The second generation: dual-color multi-gradation display. With red and yellow-green colors as the base color, there is no blue color, so it can only be called pseudo-color. It can display multi-gray-scale images and videos. Currently, it is widely used in telecommunications, banks, taxation, hospitals, government agencies and other occasions. Display slogans, PSAs and image promotion information.

The third generation: full color multi-gradation display. Using red, blue and yellow-green colors as the base color, more realistic images can be displayed. In 2008, it was the most popular, with extensive use of stage backgrounds, conference rooms, bulletin boards, and so on.

The fourth generation: truecolor multi-gradation display. With red, blue and pure green as the base color, it is possible to truly reproduce all colors of the natural world (even beyond the natural color range in color coordinates). Can display a variety of video images and color advertising, its bright colors, bright high brightness, fine contrast, in the field of advertising advertising has a very good visual impact.