LED display industry is expected to welcome performance restoration, high-end products will further expand profit margins.

The LED display industry is expected to usher in a period of performance restoration. According to the latest report of Trend Force, a market research organization, the global LED display output value is expected to increase by 13.5% year-on-year to US$6.27 billion in 2021.

According to the report, the global LED display market will be affected by the epidemic in 2020, and the overall output value will only reach US$5.53 billion, a year-on-year decrease of 12.8%. The decline in demand in Europe and the United States is the most obvious. In 2021, as the overall demand warms up and the upstream component prices increase due to shortages, LED display manufacturers will increase the prices of their products simultaneously. This year, the output value of the LED display market is expected to rise.

Among the leading companies, Leyard has disclosed the semi-annual report forecast, and the net profit range for the first half of this year was 250-300 million yuan, compared with 225 million yuan in the same period last year. According to the company, the domestic display market demand continues to be strong, and the number of new orders signed in the first half of the year has increased significantly compared with the same period of the previous year. Up to now, the number of newly signed overseas orders has also exceeded the same period of the previous year.

Like Trend Force, Great Wall Securities analyst Zou Lanlan also gave optimistic guidance. The analyst released a research report on May 26, saying that looking forward to 2021, the domestic market is expected to continue the trend of recovery in Q4 2020. At the same time, it is expected that the overseas market will recover as the epidemic eases. In 2021, the LED display market will reach 6.13 billion U.S. dollars, a year-on-year increase of 12%.

The analyst is further optimistic about the high-end track of small-pitch LED displays, indicating that control rooms, corporate offices, product exhibition halls and meeting rooms are rapidly applying small-pitch LED display products. In 2020, against the background of the overall decline in LED display demand, shipments of small pitch and fine pitch products (with a size not exceeding 1.99mm) reached 160,000 units, an increase of nearly 10% year-on-year, and it is expected to reach 260,000 units in 2021. A year-on-year increase of nearly 59%, the industry continues to maintain a high growth momentum.

According to head leopard data, the market size of China’s LED display industry is expected to grow to 110.41 billion yuan in 2023, and the compound annual growth rate in 2019-2023 will reach 14.8%. Among them, the small-pitch LED market will reach 48.63 billion yuan in 2023, accounting for nearly half of the entire LED market.

In the future, with the further expansion of the application scale of small-pitch displays, Mini LED displays and Micro LED displays gradually realize large-scale applications, and there is still considerable room for growth in the LED display industry.

Among the listed companies, Lijing, a joint venture between Leyard and Epistar Optoelectronics, officially went into production in October 2020, becoming the world’s first Micro LED mass production base. Currently, orders are full and production has been expanded ahead of schedule. Fu Chuxiong, an analyst at Galaxy Securities, predicts that in 2021, the company’s Micro LED products will achieve a revenue of 300-400 million yuan, and will maintain a rapid penetration trend in the future.

The rapid development of small-pitch LED displays has also brought incremental space for LED packaging technology. COB packaging has the advantages of lightness and thinness, and high stability for indoor applications. According to LED inside data, according to the output value of LED packaging, the output value of LED display is about 2.14 billion U.S. dollars, and the downstream accounted for 13%. With the gradual maturity of small-pitch, mini LED and other products in the future, the proportion of related output value will gradually increase.

Post time: Jul-01-2021