In-depth interpretation: Analysis of LED display technology and market development dynamics

Development of China's LED display application industry

With the continuous improvement of LED practical technology level and the continuous enhancement of display effects, LED display screens have now become the main force of LED outdoor media. At present, the overall development of China's LED display application industry has reached a certain level of scale, brand companies are growing rapidly, and the direction of standardization and intensification of industrial development is highlighted. While domestic LED displays continue to develop, LED display application products are accelerating towards the international market, occupying a certain international market, and basically forming a number of key enterprises focusing on export business. Due to the many advantages and wide applications of LED displays, the development of LED upstream industries has a significant impact on the development of the display application industry. Promote the continuous improvement of LED display application product technology, the continuous technological advancement of the entire industry, and the standardization and technical system of conventional products have been basically formed. Some domestic enterprises have the engineering design and implementation capabilities for special LED display projects and major LED display application projects.

China LED display application market

China's LED display market continues to grow in scale. In 2013, the national LED display application industry market totaled 27 billion yuan. In 2014, benefiting from the development of small-pitch products and the advertising media market, the national LED display application industry market sales increased significantly compared with 2013. The total annual market volume reached about 30 billion yuan, with a growth rate of 10-15%. The export of LED display application products maintained a good momentum in 2014, with the total export volume of display screens estimated to be RMB 5 billion.

The development of enterprises in China's LED display application industry

With the continuous expansion of the scale of the industry, the development momentum of major brands is very strong. There are 50 LED display application companies in the industry with sales exceeding 100 million yuan, and their sales account for more than 50% of the total sales of the national LED market. There are nearly 30 companies with annual sales of more than 200 million yuan, which are the backbone of China's LED display application industry. There are about 10 companies with sales of more than 500 million yuan, which are key enterprises in the industry, and their sales account for about 30% of the country's total. Large-scale enterprises and key players are mainly concentrated in South China, with Shenzhen being the most concentrated. East China, especially the surrounding areas, has grown rapidly in recent years.

The group of large-scale key enterprises has grown

In 2015, many companies already have their own layouts and strategic plans in the advertising field, and have achieved impressive results. The group of large-scale key enterprises is getting stronger and stronger, and the number of enterprises worth 500 million yuan is constantly increasing, and their sales account for more than 30% of the national sales. Here are some examples of key enterprises in the industry: Shanghai Sansi Technology Development Co., Ltd., Nanjing Lopu Co., Ltd., Leyard Optoelectronics Co., Ltd., Shenzhen Zhouming Technology Co., Ltd., Shenzhen Lianjian Optoelectronics Co., Ltd., Shenzhen Absen Optoelectronics Technology Co., Ltd., and Xiamen Qianli Jucai Optoelectronics Technology Co., Ltd.

Diversified capital structure of the LED display application industry

Due to the many advantages of LED displays, they have penetrated into various fields and have a wide range of applications. The capital market continues to favor the display application industry and continues to enter strongly. There are 6 directly listed companies in the industry, including Lianjian Optoelectronics, Unilumin Technology, Leyard, Alto Electronics, Ledman Optoelectronics, and Absen. There are also LED epitaxy and chip companies in the upper reaches of the industry chain: listed companies such as Huacan Optoelectronics and Silan Microelectronics subsidiary Silan Mingxin. In addition, there are also display company Ruituo, which was acquired by Dehao Runda. Since 2014, companies related to the LED display application industry listed on the National Equities Exchange and Quotations (commonly known as the "New Third Board") include: Easystar, Yuanheng Optoelectronics, Chip Optoelectronics, etc.

Innovation in LED display application technology

In addition, technological progress has also greatly reduced the cost of building screens for operators. Traditional display technology has become mature, product reliability and process levels have been significantly improved and perfected, and gradually standardized. In response to special use requirements, a series of new special-shaped LED display products have emerged, such as "mantle LED display", "stereoscopic LED video column", "LED color tiles", "LED curtain display", "LED translucent display", etc., which greatly expands the application scope of LED display. The level of core key technologies has been greatly improved, such as LED display 3D technology, color restoration, point-by-point correction, and high grayscale control, which are technical hot spots. Technologies such as reliability and energy saving have become the focus of the industry. The maturity of small-pitch indoor and outdoor LED display devices has promoted the development of small-pitch LED display products.

LED display product application market expansion

The market for LED display products is becoming more and more vast, has been widely used, and has attracted much attention. The application in major projects and occasions is excellent. Many new technologies have been applied in key projects such as the Beijing Olympics, the 60th Anniversary of the Founding of the People's Republic of China, the Shanghai World Expo, and the Guangzhou Asian Games, and have achieved excellent results. China has become a major manufacturing and application country of LED display application products and is moving towards a technological power. This means that the LED future application market has broad space and huge development potential. LED display screens are developing in the direction of indoor high-definition and large-scale display systems, and there is a strong trend of replacing traditional display products.

The business transformation and improvement of LED display companies

With the fierce competition in the LED display market, some large companies have relied on their strong strength and advantages to acquire small businesses one after another, and through mergers and acquisitions, they have greatly increased their business scale. In order to highlight the brand effect to strengthen its competitiveness in the market, it will conduct cross-border integration around the LED display industry and expand its business scope. While LED display companies focus on process design and product quality, they also pay more and more attention to brand benefits, begin to focus on professional market segments, and adhere to the characteristic high-quality business line. Through new thinking and new models, we will stretch the industrial chain and promote bigger and stronger businesses. The product application innovation model has begun to change, with technological innovation and marketing model innovation synergizing to enhance brand image and brand strategic deployment.

The overall development trend of the LED industry chain

In the expansion of LED applications, the traditional market is growing steadily, and emerging markets have huge potential. China's annual outdoor LED large-screen advertising market size is 2-3 billion yuan. Upstream industry: In 2014, the number of MOCVD equipment in my country was 1,290. The LED industry as a whole is developing towards higher luminous efficiency, lower cost, higher reliability and wider application. In 2015, the overall growth rate is expected to be around 30%. The scale and comprehensive strength of LED display companies have increased. In the first three quarters of 2014, the total operating income of 22 A-share listed companies whose main business is LED was 18.61 billion yuan, a year-on-year increase of 32.4% in 2013. The revenue growth rate of the LED sector was 26.46 percentage points higher than that of the overall A-share market, and 7.8 percentage points higher than that of the electronics sector.

LED display application industry development environment

Government attention and support: The State Council has deployed strategic emerging industries, including new energy and new materials, which are highly relevant. At the same time, during the 11th Five-Year Plan period, the Ministry of Science and Technology provided corresponding support in the 863 Program, the Science and Technology Support Plan, and the Electronic Information Development Fund. The Ministry of Science and Technology has allocated some funds to promote the development of chips and packaging, that is, upstream applications, and has also launched the 863 project and technology support projects. The State Council's "Twelfth Five-Year Plan" National Strategic Emerging Industries Development Plan mentions accelerating the cultivation of new generation semiconductor materials as key projects; local governments at all levels also attach great importance to the development of this industry.

Comprehensive industrial environment: The industrial structure is continuously improved and rationalized during adjustment, the professional division of labor and the industrial chain of LED products are formed, and the industry continues to improve. More and more application fields require the protection of LED smart displays. Multi-field cooperation is very necessary so that multiple industries can jointly advance. Jointly increase the attention of the investment market.

LED display application industry development trends

The development of the industry has entered a stage where the market is relatively stable and resource integration is accelerating. The comprehensive strength of key leading enterprises has been continuously improved. Independent innovation and brand building have become important contents of the core competitiveness of enterprises. The indoor and outdoor small-pitch LED display product market has driven market improvement. Emerging markets such as creative display, advertising media, rental performances, etc. have continued to strengthen. The international market has expanded. The international influence of independent brands has gradually increased. Professional and technological innovation has been strengthened. An industry collaborative innovation service system has been established.