At present, the majority of outdoor LED displays are full-color, and occupy 80% of the market of LED displays. The wave of full-color displays has dazzled us and brought many surprises. How will LED display technology extend in the future?

    From the perspective of the current competition in the domestic LED display industry, it is still in the early stage of product competition. The key indicators of competition are: price, quality, delivery time, after-sales service, etc. The price factor is particularly prominent at this stage. In 2018, the price of LED display screens continued to decline, with a year-on-year decline of 15%-20%. The underlying reason for the continued decline in the price of LED displays is that powerful large manufacturers hope to eliminate some small and medium-sized manufacturers through price wars. The price war has greatly affected the revenue performance of LED display manufacturers, and LED manufacturers whose revenue will decline may reach more than 30%.

   Prices are falling, further compressing gross margins. At present, the gross profit rate of LED display manufacturers mainly based on channels has dropped to 10%-15%, and the gross profit rate of products from engineering channels is still above 20%. The profitability of LED electronic display manufacturers is still weakening.

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

   Since the LED display industry has entered a mature stage, the market size of LED electronic display will maintain a steady growth trend. In the next few years, the growth of the LED display market will remain at 10%-20%. In the future, the profit growth of LED display will mainly come from the traditional inkjet, neon, billboard alternative markets, as well as high-definition, 3D, intelligent and other multi-functional high-end LED display markets.

   The future development of the LED display market.

   At present, although the competition of LED displays in mainland China is fierce, it is still in the 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 factor is particularly prominent.

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

   Since the LED display industry has entered a mature stage, its market size will maintain a steady growth trend. Industry insiders predict that the growth of the LED display market will remain at 10%-20% in the next few years. In the future, the profit growth of LED display will mainly come from the traditional inkjet, neon, billboard alternative markets, as well as high-definition, 3D, intelligent and other multi-functional high-end LED display markets.