LED small spacing screen in 2015

The price and margin correction, fine pitch LED inevitable civilian handshake

If you give a small pitch led high bay light supplier recently noted a "most significant" feature, then this point must be "price." --10 Million more than the price per square meter, making a small pitch LED products almost become the most "expensive" display technology.

2015 with a small pitch LED display "technology surplus trend," has become increasingly evident, as well as price competition in the industry in reducing its systemic costs, product market competition, small pitch LED screen can not be avoided. 2-3 percent price cut, 1.6mm and above products, prices gradually civilians, will be a big trend.

The price is declining, industry gross margin could not change. Currently, a small pitch LED screen industry concentrated in more than 30% gross margin, net profit margin of over 10%. This is a very high level, is also a difficult long-term sustainable levels. High profit performance led display small spacing is based on the "product scarcity" basis. However, a very profitable product line, could not attract more than 40 various domestic LED display enterprises attention. This will result in excess supply competitive, leading to price wars: especially those high demand, price competition level is not extremely small pitch products will be the most intense.

LED spacing small decline in product prices, for its industrial energy release is good news. Currently, the use of a small pitch LED customers, divided into two categories: one is a non-specific display requirements "fine pitch LED not"; the second category, the "rich and capricious," the customer. Although these two types of market size is not small, but after all, is not "truly mainstream." In fact, more closely spaced potential demand crave products, "economics."

In addition, Riyadh, Chau Ming companies to the domestic market as a possible direction of the industry. The domestic market has always been a cost-sensitive fields. This requires that companies must leverage leveraging product cost, will it be possible to expand the domestic market leveraging leverage.

Therefore, the price drop is a small pitch LED screen product market competition, the inevitable result is also one of the direction of the market demand. At this point in 2015 there will be no suspense.

The main market is still growing trend of LED spacing is small

2014 small pitch LED display industry exhibited relatively "high degree of market concentration." Liard, Chau Ming, joint construction and other companies a virtual monopoly on the market discourse. However, I believe that this situation will not last long.

First, the cause of the existing industry presents the central tendency is not "demand sex", but "the early bird catches the worm" form. Today, the majority of the industry's leading companies in the so-called giants, dependent on a "step ahead" of the industry layout: first to complete product development, the first to realize the scale of the product, the first to launch the product popular marketing campaign. This time the leading edge, the ultimate performance for the market share leader.

Second, there is no build leading brands and strong enough "market share" barriers. On the one hand, a small pitch LED market is still in development stage, there are a lot of "virgin land reclamation wait," not from the situation in the market saturation competition. On the other hand, does not have a monopoly of the leading companies in the technology, from the lamp beads resources to the table mount technology, corporate pilot did not take enough, "a market barrier" technological advantage.

These two points determine the other companies can "calm" doing fine pitch LED products followers do not even need to worry about technical bottlenecks and direct touch with the giants of the market. Therefore, expected in 2015, the leading brand of small pitch products, sales will still be substantial growth, but the market share but it will be in decline stage. Small pitch LED display will usher in more market participants include: manufacturers, distributors, engineering and other practitioners in different industry chain will be a significant increase in the number of firms.

 growth is still impressive, but the speed is bound to decline

2014 small pitch LED market growth is very considerable, an over 70% growth of data, enough to make any other display technology "can offer."

Small pitch LED screen in rapid growth in 2014 has a particularity: the first, in fact, a small market base, which is the key point to achieve more than the growth rate; second, fast evolution of technology, the success of the market to support large-scale applications ; third, rival super slow response, particularly unresponsive DLP Video Wall camp, became a powerful factor in the rare small pitch LED speeding growth.

However, the advantages of the above three factors will no longer continue to exist in 2015. First of all, 70% of the increment has greatly increased throughout the industry, "base"; Second, technology evolution gradually reach the peak, the industry must change the structure of growth; third, the direct impact of competing technologies will be stronger with a small pitch of LED become intense.

Therefore, the forecast market growth in 2015 down to a small pitch below 5 percent, and even that only about 40% - however, this decline in the market do not have any data, "worried." Since 2015, a small pitch LED market growth, in terms of absolute value, the still not significantly lower than in 2014.

2015-2016 small pitch LED display market, maintaining growth in decline, but the absolute increment of relative stability is a high probability event. If this can be achieved incremental scale in 2016 will also be a small pitch LED market is currently about twice - this data shows a small pitch LED, in the next few years will still be a large untapped gold mine.

 GeZongLianHeng is inevitable, we all need to make a short board

Another 2014 fine pitch LED industry is a significant change, "weave."

March 2014, Riyadh announced that it will acquire Hedong Electronics does not increase more than 25% equity; in September 2014, the joint construction of photovoltaic spend 950 million yuan acquisition of Friends of Extension and ease things up; September 2014, Chau Ming science and technology through the acquisition of 100% stake in Blue & Poor's motion; December 2014, VTech Kingsun acquired 51% stake in color; in January 2015, the acquisition of Guangzhou Li feng Liard culture Arts and Technology Co., Ltd. and Beijing Jin Xiang Cai Technology Limited 100% stake in ......

These acquisitions reflect what is it? The answer is inadequate short board. LED display and lighting industries are Liard, Chau Ming the main industry. Both industry in recent years have shown a "high growth" feature. This makes the company must find ways to deal with "severe market expansion" and "channel crisis."

Inevitably, a small led high bay light price in the field of culture and entertainment promising. And before the introduction of a small pitch LED products in Riyadh, and no large-scale expansion of its areas of operation of the market demand for cultural competence. Through the acquisition of such enterprises Jin Xiang, Riyadh were given the industry's leading marketing resources and personal connections. Jin Xiang also get a more reliable upstream industry support. Called a win-win situation.

2015, small businesses continue to acquire pitch LED screen "channels" annexation "of small and medium industries and enterprises," Lien processor IC and business expansion, "market reach" is a high probability event. In this context, the traditional big-screen DLP stitching and other companies, will "in order to survive the competition" and expand its market in the field of LED screen: the acquisition is also regarded as an effective and quick option.

 DLP LED back by a small pitch competition, anger Bo is not impossible

2015 development of small spacing LED market is still facing constraints of an external factor. That is, as the main market rival DLP videowall how to fight back.

DLP video wall LED market is not the only offensive spacing small market. Small pitch LED DLP splicing of alternative products is over 50%. This makes the pitch, though small LED DLP splicing enemy does not have to, but it must be a small mosaic DLP LED spacing regarded as "full of opponents."

Small LED spacing contrast DLP technology advantages seamless splicing products are mainly, highlight and color performance; small spacing contrast LED DLP splicing products industry advantage mainly small widely spaced LED applications, strong industry support force, while DLP splicing products the core of the market is too concentrated, narrow; small pitch LED DLP splicing products compare variables advantage is that a small pitch in prices downward path LED, DLP adoption of new technologies, such as laser light will result in increased costs ......

However, DLP video wall industry has its advantages, this advantage is the "customer base" advantage. On the one hand, DLP video wall enterprises to understand customer needs, good public relations these customers, and customers with good connections; on the other hand, many applications for DLP Video has a good knowledge of these areas require products with high stability degree, customers often do not easily selection of new products.

Market advantage DLP video wall products, is actually a "preconceived in time" advantage, but not "necessarily selective advantage." However, these advantages but enough to give the enterprise DLP mosaic wall counter space. On the one hand, you can reduce the price of DLP splicing products in order to maintain existing markets and customers; the other side you can put "customers rely on the advantages of" actively expand stitching LCD, LED displays and other product lines, business transformation composite technology roadmap .

In short, the 2015 traditional DLP videowall enterprises must increase "for small pitch LED" market response, thereby causing "camp" and the "origin" of the dispute, did not develop a small pitch LED display bring about structural variables.

 Multiple marketing is the norm in a small pitch LED screen

Direct competition with DLP video wall is important, but it is not a small part of the pitch LED must fight. In fact, the small pitch LED display 2014 sales had already exceeded the domestic market, many DLP video wall, which shows the diversity of the market is one of the characteristics of small pitch LED applications.

Control room and the general control room, a small pitch LED display has needs. But the former is the high-end market, while the latter is in the low-end industries. A competition with DLP video wall, and the other with LCD videowall competition. This market structure will require a small spacing diversified LED screen price system.

Digital signage and advertising market, the largest small pitch "the main market." LED screen can flex stitching, surface design, the use of irregular shape, and has the advantages of bright, high contrast and high color performance - these formal large size digital signage displays the necessary characteristics.

Culture and broadcasting fields, is a small pitch LED screen "big gold mine." Both applications require high-performance, high-quality, high stability, of course, will be a high price and high profit markets. Culture and broadcasting as digital signage and advertising, the small spacing largest growth point, no doubt, "safe", and the lack of competing technologies "industry opportunities."

Home market, the largest fine pitch LED imagination. Film culture, high definition video has been successfully promoting large-scale home television shows. In this regard, a small pitch LED disadvantage is the price, the performance advantage is more than 100-inch display. Under the trade-offs between the two, but the industry throughout the territory, although the hope is impossible, but nor is impossible at the high end of the market billions Nuggets.

Second and third tier cities, small pitch LED's recent targets. Although small pitch LED display has been more than three years of rapid development, but the market is still dependent on the location on the first-tier cities. And if we can effectively excavation tier cities market demand, the small spacing led display market will be almost doubled, "every minute clock" thing.

In summary, the 2015 LED spacing small businesses will be busy: Because there are many potential market gap in the market have to open up. Market diversification will be a small pitch LED industry norm.

Summary: For the LED display industry, small pitch LED is a very promising product. This product can make at least double the size of the LED display industry, while bringing the whole project unprecedented changes in the display industry. In 2014, the industry has felt this "small pitch Tempest" violent, 2015 is a small spacing by quantitative to qualitative leap in the critical moment.