Small pitch LED display screens urgently need price reduction channels.indoor rental led screen maker

　　The LED display screen industry in China is entering a period of deep adjustment, with enterprises undergoing restructuring and reshuffling in industries such as product homogenization, overcapacity, low-priced competition, meager profits, bankruptcy waves, and mergers and acquisitions. After successfully breaking through the limit of point spacing in 2012, small pitch LED has experienced rapid expansion in scale after more than four years of development, characterized by high prices, high profits, and wide application fields. It directly competes with DLP and LCD products in the professional large screen market, making the LED display screen industry one of the most important sub markets.

　　Especially in 2015, with the global economic downturn and declining demand, the LED display screen industry entered a cold winter. The new "blue ocean" in the small pitch LED display screen industry has attracted more and more display screen companies to join, and has also attracted widespread attention in the industry. The "Research Report on the Industry and Application Value of Small Pitch LED Display Screen" provides a deep analysis of the operating characteristics, industry chain, and competitive products of the entire LED display screen industry and small pitch LED market, exploring the main pain points, future growth potential, and application trends of small pitch LED. The report is for reference by government agencies, small pitch LED industry, investors, and other industry professionals.

　　According to data, small pitch LED displays urgently need a price reduction channel, why?, Nowadays, P1.2-P1.9 LED small pitch products have achieved large-scale application and mass production. In 2015, with the increasingly obvious trend of "technology surplus" in small pitch LED screens, as well as the systematic decline in industrial costs and intensified product market competition, price competition for small pitch LED screens is inevitable. For products with a diameter of 1.6mm and above, the average price may be reduced by 20-30%, gradually becoming more affordable.

　　In this regard, many data indicate that there are signs of price reduction for small pitch LED displays, with P1.925 having the largest price reduction in the first half of the year, a decrease of 15% compared to the same period last year. However, some industry insiders also claim that this is a reasonable price reduction, mainly due to the price reduction of small pitch LED components.

　　Although the prices of small pitch LED displays continue to decline, their prices are still unattainable compared to other display technologies. Market information shows that with a 65 inch display screen as an example, the price of LCD and plasma is below 10000 yuan; Projection displays vary in price due to varying brightness, but in most cases the cost does not exceed tens of thousands of yuan; The price of DLP rear projection splicing products ranges from 70000 to 200000 yuan; The price of LED displays with pixel spacing below P2.0 ranges from 100000 to 300000, which is significantly higher than other display technologies by 1.5 to 20 times.

　　From the above, it can be seen that the price of small pitch LED displays is much higher than other display technologies, mainly used in public service projects such as the military and public security, broadcasting and transportation, and energy industries. This also leads to the phenomenon of "small distance purchases either being government related or related", with relatively limited market space.

　　Next, only the commercial and civilian markets can further ignite the small pitch LED market. In addition to diversified applications, cost control will also be a focus of attention for screen companies. However, where is the price reduction space for small pitch LED displays? From its industrial chain analysis, the cost of small pitch LED display devices, namely lamp beads, accounts for 60% -80% of the total cost, and production has not yet achieved localization. At present, the mainstream suppliers of small pitch packaging devices in China are Taiwan Yiguang and Hongqi. Although mainland enterprises such as Guoxing and Jingtai are actively pursuing small pitch packaging devices, their market share is still very limited.

　　The good performance of imported packaging devices also means high prices, and domestic replacement will be an important direction for reducing costs. With the rapid increase in the market size of small pitch LED displays, mainland LED packaging companies are rapidly entering the supply chain of small pitch packaging devices. With their cost, efficiency, and supply chain advantages, they are expected to quickly drive down the price of lamp beads.

　　At the same time, the progress of large-scale production and packaging technology will also drive cost reduction. At the beginning of the launch of small spacing products, due to issues such as technology and yield, prices are often high. However, with large-scale production, it is expected to achieve technological progress, economies of scale, and thus reduce costs.

　　In the future, the small pitch LED display screen industry will enter an era of diversified applications and cost control centered around highlighting customer experience value. The market will further approach enterprises that seize market opportunities, leverage their own advantages, and achieve a shift from technological leadership to channel, service, brand, and cost advantages.

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