The Future of LED Display Industry in 2017
Will the rise in raw materials continues for upstream enterprises continues?
From the very beginning of May, the price of raw materials keeps going up including chips, beads, rapping materials, IC and so on. But, what causes this for such a long period? On one hand, from the macro point of view, it is due to the unsteadiness of the global market such as the Brexit, American election for new presidency. Those political activities have direct impact on the global economy and you can always see the bad results by the rate of exchange. While, to be more specific, demand for upstream materials keep growing. LED application in lighting and advertising has been largely increased. And since 2012, deduction of storage and capacity leads to a pause to increase of supply and demand.
As said above, for the upstream enterprises, it is not likely to witness a drop in price. It is going to be gradually stable. While packaging industries can not be distracted, international giants like SONY are now reaching their hands to us.
Smaller beads will definitely take up a huge market in the evolution process.
What is the leading factor that decides the progress in LED industry? The answer is quite simple–convert efficiency, which totally determines the direction of the development for LED display industry. What if smaller beads can still hold on to 500-1000 Lumens of brightness indoors and even 3000 lumens outdoors?
When we look back, the whole process for small-pixel display screen is actually a process for LED beads to be smaller and smaller. For P4 modules, we use beads of 2-3 mm. P1.5-P2, 1 mm. And P1.2 and below are using 0.4-0.8 mm. Meanwhile, the inner crystal of the beads keeps shrinking from 30 mil² to 20 mil².
It is considered that small pixel screen can still be greatly needed in the near future due to the pursuit for extreme viewing experience. However, other than the demand of our customers, it is a permanent core competitiveness for LED display screen manufacturers.
Development will remain while the profit will shrink.
It is still another harvest year for this industry. Both quantity and quality have been greatly improved. Especially 30-40 percent of the gross profit has been made when P1.2 comes out. It is predicted that in 2017 the growth for this industry will be above 60 percent and most manufacturers will get positive profits.
In a word, the market still craves to be developed. Expectations on total market quantity and profit turn out to be in a positive way. Last but not least, the interaction between upstream and downstream enterprises will become more and more frequent and it’s not only refers to supply and demand but a technique perspective as well. Eventually, LED display screen will rely on industrial system not the rear end companies.
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