After the Dragon Boat Festival, the relatively difficult first half of 2020 has passed, ushering in the second half of the year when the market expected by various screen companies is expected to fully recover. In order to meet the market’s upcoming recovery in the second half of the year, the major LED companies have planned in advance and stepped up the layout methodically to pave the way for the next development of the company. In the recent LED display industry chain, all companies have taken actions to join forces to enter the hot industry in order to seize market opportunities.
Demand for small-pitch LED displays continues to be strong
After years of rapid development of small-pitch LED displays, the overall market has begun to enter a period of slow development, and the growth rate tends to stabilize. According to the “Blue Book of China’s LED Display Industry Analysis and Forecast”, the growth rate of the small-pitch LED display market shows a downward trend every year, which means that the golden period of small-pitch is about to pass. However, at the beginning of this year, due to the need for epidemic prevention and control, the demand for small-pitch LED displays in the command and monitoring center and video conference displays was stimulated, prompting screen companies to accelerate the production of small-pitch displays and launch smart conference all-in-ones to meet the needs of the epidemic.
During the period, the performance of screen companies increased. According to statistics from relevant agencies, in the first quarter of 2020, the sales of small-pitch LED displays were 1.56 billion yuan, down 14.2% year-on-year, and the sales area was 35.9K square meters, down 3% year-on-year. Although the market demand is declining, compared with other fields, the small-pitch display is an industry that drives performance. This can be seen from the first quarter reports of major screen companies, and the decline in market demand is not large, which attracts many companies Enter the field of small-pitch LED displays, explore the possibility of its own field in the field of small-pitch, derive more small-pitch products, and enrich the types of small-pitch displays.
After entering May, with the resumption of work and classes in my country, the market demand for small pitches has declined, coupled with the recovery of other areas of the LED display market, the growth rate of demand for small pitch LED displays has slowed again. At the beginning of this year, the national strategic “new infrastructure” plan was put on the agenda, and its related high-definition smart terminal display opportunities reignited the enthusiasm of screen companies for small-pitch LED displays. Many companies in the industry said that they are optimistic about new infrastructure opportunities and are waiting for new infrastructure-related policies to be introduced, and hope that through the new infrastructure’s demand for small-pitch LED displays, the impact of the epidemic on their companies in the first half of the year will be mitigated. In the two sessions in May, the country listed new infrastructure as a key national development direction, which means that the country will introduce relevant plans in the second half of the year to promote the construction of new infrastructure, and the LED display projects will increase accordingly. The industry once again ushered in a period of rapid development of small-pitch LED displays.