Dual-wheel Drive of Technological Innovation and Market Recovery ¶
By: Albert Zhou on Sept. 5, 2024, 7:25 a.m.
In recent years, the LED (light-emitting diode) industry has shown strong development momentum worldwide, especially in the Chinese market, where its market size and technological innovation have continuously achieved new breakthroughs. This article will observe and analyze the latest situation of the LED industry from the aspects of market size, technological innovation, policy environment, and market trends.
1. Market Size Continues to Grow
LED Display Screen Market Picks Up
According to predictions from the China Business Industry Research Institute, China's LED display screen screen market size will gradually recover and grow to 63.4 billion yuan in 2024, a significant increase from 49.3 billion yuan in 2022. This growth is mainly due to the gradual recovery of domestic demand and the widespread application of LED display screens in advertising, stadiums, performance stages, and other fields. At the same time, as Mini/Micro LED technology continues to mature and costs decrease, its application in ultra-large display products as well as small and medium-sized display products such as smart watches, smartphones, and automotive displays is also expanding, further promoting the growth of the LED display screen market.
LED Lighting Market Develops Steadily
As an important part of the LED industry, the market size of LED lighting also continues to grow. According to Statista and GGII data, the global LED lighting market penetration rate has increased year by year and is expected to reach 75.8% in 2025. In the Chinese market, the LED lighting market size is expected to reach 716.9 billion yuan, with a year-on-year growth rate of double digits. With the global emphasis on energy conservation, emission reduction and carbon neutrality, LED lighting is gradually replacing traditional light sources with its advantages of high efficiency, environmental protection and long life, and has become the mainstream in the lighting field.
2. Technological Innovation Leads the Development of the Industry
Breakthrough in Mini/Micro LED Technology
As a new generation of display technology, Mini/Micro LED technology is leading the revolutionary change of display technology with its high resolution, small pitch, high brightness and other characteristics. In recent years, Mini/Micro LED has made major breakthroughs in chip size, mass transfer technology, etc., production costs have gradually decreased, and market promotion efforts have continued to increase. For example, leading companies such as Leyard and Unilumin Technology have increased their investment in the research and development and production capacity construction of Mini/Micro LED technology to promote its application in smart manufacturing, virtual reality, augmented reality and other fields.
The Rise of COB and MIP Packaging Technology
In addition to Mini/Micro LED technology, COB (Chip on Board) and MIP (Micro LED in Package) packaging technologies have also become the focus of market attention. The introduction of these new technologies not only improves the display effect and reliability of LED display screens, but also further reduces production costs. According to data from Luotu Technology, in the first quarter of 2024, in the small-pitch LED display screen market in mainland China, the market share of COB packaging technology has increased significantly, becoming the main driving force for market expansion in the pitch segment below P1.4.
3. Continuous Optimization of Policy Environment
The Chinese government has attached great importance to the development of the LED industry and has introduced a series of policy supports. For example, the "Action Plan for Steady Growth of Electronic Information Manufacturing Industry 2023-2024" clearly mentioned the need to vigorously develop technologies such as Mini LED and Micro-LED, providing a good development environment for the LED industry. In addition, the implementation of policies such as the "Implementation Plan for Promoting Equipment Renewal in the Cultural and Tourism Fields" has further promoted the application of LED display screens in cinemas, cultural tourism and other fields.
4. Market Trends and Opportunities
The International Market Has Become an Important Growth Point
As LED display screen technology continues to mature and costs decrease, the competitiveness of Chinese LED companies in the international market continues to increase. Data shows that overseas markets have become an important growth point for LED display screen companies. For example, the proportion of overseas market revenue of leading companies such as Leyard and Unilumin Technology has increased significantly, becoming a key factor driving the growth of their total revenue.
Emerging Application Areas Continue to Expand
In addition to traditional advertising, sports venues and other fields, LED display screens also show great potential in emerging application fields. For example, in the XR virtual production market, Chinese companies Unilumin and Alto Electronics have a combined global market share of more than 90%; in the LED movie screen market, Chinese companies have also made significant progress. In addition, with the continuous development of technologies such as the Internet of Things and big data, the combination of LED display screens with cutting-edge technologies such as AI, XR, and virtual humans has become increasingly widespread, bringing new growth points to the industry.
Conclusion
In summary, the LED industry has shown strong development momentum in terms of market size, technological innovation, policy environment and market trends. With the continuous maturity of Mini/Micro LED technology and the reduction of costs, as well as the continuous expansion of the international market and the emergence of emerging application fields, the LED industry will usher in a broader development prospect. In the future, companies need to continue to increase R&D investment and enhance technological innovation capabilities to cope with the continuous changes and challenges of the market.
(Reference source: Internet)