Has the price of LED small spacing display been affected since the epidemic?

Since the outbreak, all fields of LED display have been affected to varying degrees, and the whole industry has fallen into a downturn. However, there are always exceptions. With the characteristics of high-definition display, seamless splicing and intelligent display, small spacing LED display plays an important role in command and dispatching center, video conference and other scenes, and quickly occupies people's vision. The hot market makes many enterprises "salivate" and rush into the field of small spacing LED display, intensifying the competition in the domestic small spacing market. In this case, what is the future trend of small spacing LED display?

The release of new products is basically small spacing products, and the competition in the domestic market is intensified

During the epidemic period, due to the needs of command and dispatching, monitoring center, conference video and other scenes, the demand for small spacing LED displays continued to grow. At present, the LED display market is in a relatively depressed state. The profitable small spacing LED display field has attracted many screen enterprises, and launched small spacing products one after another to expand domestic channels and seize the domestic market with strong policy preferences. Not only that, LED screen enterprises that originally focused on overseas also shifted their focus to China to disrupt the domestic market with small spacing products due to the rampant overseas epidemic and the shrinking market. According to incomplete statistics, since March, a total of 7 screen enterprises have released new products with small spacing and laid out domestic channels, including enterprises deeply engaged in the domestic market, LED screen enterprises returning from foreign trade and leading enterprises from the security industry. Looking around from enterprises in many industries and fields, the domestic small spacing LED display market competition is about to enter a white hot stage.

Price reduction is the general trend, and the epidemic has become a catalyst

Small spacing LED display is still a relatively young industry. Some people may ask whether it is too early to talk about price reduction now? The answer is not early, and the price reduction tide is likely to come after the epidemic. Small spacing LED display screen has always been the profit output point of major screen enterprises. According to the 2019 annual report, the performance of small spacing LED display screen accounts for 58% of the performance of one enterprise in 2019, becoming an important source of its performance in 2019; According to the performance report of another company in 2019, the number of small spacing orders doubled in 2019. The signing of orders in Latin America and China increased by 506% and 123% respectively over the same period of last year, with a strong growth momentum; It can be seen from the above data that small spacing LED display screen is an important source of performance growth of large and medium-sized enterprises in China.

At the same time, due to the high profit, many LED screen enterprises list the products of small spacing LED display screen as the products that enterprises attach most importance to, constantly explore the application scenarios of small spacing LED display screen and expand its application scope, so as to increase the number of small spacing related application products on the market and promote the market scale of their products. Once the industrial chain forms a large-scale effect, it will lead to the decline of process cost. The price decline of small spacing LED display screen is a problem sooner or later. During the epidemic period, LED screen enterprises invested more time in research and development. In order to launch more mature products in the future, most LED screen enterprises used this time to increase their investment in small spacing LED display screens, actively cultivate their internal skills, and promote the further maturity and improvement of small spacing LED display products. The competition of many enterprises is conducive to the formation of large-scale LED displays with small spacing and further reduce the process cost, so the price of finished products will naturally decline. In addition, it is worth noting that the demand for small spacing LED displays has increased due to the epidemic, so with the end of the epidemic, the restoration of living order, the demand in video conferencing and other fields will also slowly decline. The increased production capacity during this period, the small spacing LED display market can not be consumed in a short time, so there may be the problem of excessive production capacity. At that time, with the continuous emergence of new technologies and more mature products, the surplus products basically had no advantages. In order to consume products, reducing prices will become the general trend.

Secondly, from the development process of small spacing LED display, mini / microled further reduces the lamp bead spacing and chip size on the basis of small spacing led, which is the result of the further refinement of small spacing led and is considered to be the mainstream trend and development direction of display technology in the future. Since 2019, large international enterprises represented by apple, Samsung and Huaxing optoelectronics have successively released Mini / microled products, which has a leading demonstration effect on the market. Therefore, the current market is unanimously optimistic about the application growth potential of mini / microled, and mainstream manufacturers increase their investment in mini / microled. As the mass production of microled is limited by technology and cost, miniled with relatively low technical threshold has become a breakthrough. Some manufacturers have basically completed the R & D process of miniled backlight and entered the stage of small batch samples or large batch supply. Once the application related to mini / microled starts, mini / microled will be today's small spacing LED display screen, and small spacing will become today's conventional display screen. The temperature will drop gradually, and the price will drop accordingly.

Moreover, the backlog of small spacing light beads will also become a major incentive for the price reduction of small spacing LED displays. In the past two years, the small spacing LED display screen market has shown explosive growth. At the end of last year, many lamp bead manufacturers optimistically estimated the small spacing LED display screen market. Packaging enterprises are very optimistic about the 1010 lamp bead market. Guoxing expanded the capacity of 1010 devices at the end of last year to meet the strong demand for small spacing; Cinda, zhaochi and other enterprises also launched 1010 small spacing packaging devices at the end of 19 to meet the differentiated needs of downstream screen enterprises; The expansion of leading packaging enterprises and the addition of other packaging enterprises have further increased the production capacity of small spacing lamp beads. However, due to the epidemic, the overseas market is blocked, the domestic demand cannot be driven, and the overall market is depressed, which may lead to the overstock of small spacing lamp beads inventory for capacity expansion. Nowadays, a number of lamp bead manufacturers are facing the dilemma of tight cash flow. In order to survive and move the capital flow, they have to reduce the backlog of inventory. Is it far from the price reduction of downstream finished products due to the decline of upstream costs?

Throughout the development history of each industry, after a specific stage of development, it will gradually fall back and return to its origin, including the hot protection industry and small spacing LED display. Now, the small spacing market, which is rising due to the needs of the epidemic, will also promote the early arrival of the wave of small spacing price reduction due to the catalysis of the epidemic. Although the current small spacing market can be expected, enterprises must carefully consider and be careful about the impact brought by the end of epidemic prevention, and can not expand production blindly

Gami technology is a professional LED small spacing manufacturer, which is worthy of your trust and choice!