The three major market environments are improving, how can LED screens take the next step?
The stage rental screen market rebounded in October last year, and the overseas market slowly recovered in the fourth quarter. The negative impact of the epidemic in the two major markets was effectively reduced, laying the foundation for the comprehensive recovery of LED screen companies. When the market was quiet, large enterprises increased their investment in mini/micro LEDs and accelerated the implementation of mini/micro LEDs, thereby promoting the development of enterprises and industries. Under the hot development of the three major fields, what is the next step for screen enterprises?
Last year, due to the impact of the epidemic, the LED display industry was hit on a large scale. Among them, the stage rental market and overseas markets had the most far-reaching and extensive influence. The stage rental screen market rebounded in October, and the overseas market recovered slowly in the fourth quarter. The two major markets The negative impact of the epidemic has been effectively reduced, laying the foundation for the comprehensive recovery of LED screen enterprises. When the market was quiet, large enterprises increased their investment in mini/micro LEDs and accelerated the implementation of mini/micro LEDs, thereby promoting the development of enterprises and industries. Under the hot development of the three major fields, what is the next step for screen enterprises?
Large enterprises join, and the application of mini/micro led is accelerated
In recent years, Micro LED and Mini LED, which have received extensive attention in the industry, have entered the higher-definition field. Among them, Micro LED is a screen technology for independent imaging display and is regarded as the leader of next-generation display technology. Layout MicroLED display products. Compared with small screen devices such as mobile phones, large screens are less restricted by distance and screen size, so ultra-high-definition can significantly improve the display effect of large screens. The future application direction of ultra-high-definition video is the large-screen ecology. The larger the screen, the more the advantages of ultra-high-definition video technology can be exerted. Entertainment applications and industrial applications are typical application scenarios. According to CCID's calculations, by 2022, the market size of my country's ultra-high-definition video applications in the entertainment field may reach 1.3 trillion, and the industrial application will reach 504 billion.
In addition to large screens, small-sized Micro LED technology is also an important direction of Micro LED based on COB technology, facing wearable and other fields, including VR/AR glasses, watches, mobile phones, etc. It is understood that Apple plans to invest US$330 million to build a factory in Taiwan, China, to produce LED and Micro LED displays for future iPhones, iPads, MacBooks and other devices. Because Micro-LED can support higher brightness, higher dynamic range, wider color gamut, and at the same time can achieve faster update speed, wider viewing angle, lower power consumption, these are Apple The quality the company wants to achieve. With the development of diversified products of many manufacturers, the implementation of Micro LED technology will be further accelerated, promoting the development of LED display.
Overseas markets are slowly recovering, and my country's international macro environment is improving
According to statistics from the Ministry of Commerce, from January to November, the total import and export volume was 29.04 trillion yuan, an increase of 1.8%. In US dollar terms, imports and exports were US$ 4.17 trillion, an increase of 0.6%, and the growth rate turned positive for the first time. In the context of the global economic depression, my country has demonstrated the power of the world's second economy, driving global import and export trade, and actively integrating into the global economic cycle while expanding the proportion of my country's economy in the international market. Li Kuiwen, director of the Statistics and Analysis Department of the General Administration of Customs, analyzed that my country's foreign trade imports and exports have achieved positive growth for six consecutive months since June, and the international market share has further increased.
According to customs statistics, in the first 11 months of this year, my country's imports and exports to major trading partners have maintained growth, and a foreign trade system featuring close regional cooperation and diversified trade is being formed. In November last year, the successful signing of the "Regional Comprehensive Economic Partnership" (RCEP) marked the official birth of the free trade zone with the largest participating population, the most diverse member structure and the greatest development potential in the world. In the development of Southeast Asia and the post-epidemic era, LED screen companies have created good conditions for developing the regional market. According to the agreement, 90% of the trade in goods between RCEP countries will be greatly reduced, and the level of trade will be further relaxed, providing a convenient and free trade environment for my country's import and export trade, which is conducive to further promoting my country's macroeconomic development.
Southeast Asia, as a country and region along the “Belt and Road” and RCEP, is not only an emerging market with the most stable growth in the world, but also a region with a faster recovery rate during the global epidemic. The consumption upgrade in recent years has made the LED industry in the region. Trends such as chain integration and high-end applications have paved a solid path for my country's LED display-related companies to explore overseas markets in the next few years. The reduction of customs thresholds in Southeast Asian countries will, on the one hand, help LED companies to reduce market development costs, on the other hand. On the one hand, it is beneficial for LED companies to vigorously develop the Southeast Asian market.
Since the fourth quarter, the stage rental market demand has rebounded strongly
By 2019, under the grand ceremony of the 70th anniversary of the founding of my country, the overall scale of my country's performing arts market will be pushed to 53.8 billion yuan, driving the linear rise of the stage rental screen market and giving birth to a variety of stage rental screen products. The promotion of stage rental screens is approaching a new explosion point. In 2020, after the freezing period, the stage rental market has rebounded strongly, and the overall recovery has shown a good momentum.
As my country entered the post-epidemic era, there was a water party in Wuhan, and the gate of Kaifeng stage rental screen was silent for half a year. In the first long holiday after the epidemic, more than 30 music festivals across the country announced the strong return of the stage rental screen market. At the same time, although offline concerts cannot be held, with the development of 5G technology and the Internet, 5G+VR/AR/XR technology enables online concerts, variety shows, etc., making online concerts and variety shows highly The sense of science and technology and the shocking market effect have prompted the outbreak of stage rental screens, thus promoting the rapid growth of China's performing arts industry. It is predicted that the market size of China's performing arts industry will be 39.755 billion yuan in 2020 and 67.943 billion yuan in 2025, with a compound annual growth rate of 11.31%. Even though the performance market has recovered strongly since the second half of 2020, due to the widespread impact of the epidemic, the market economy has experienced a downward trend. With the empowerment of 5G+ performance technology, the performance market, including the stage rental market, will continue to soar.
However, according to 2019 data, Beijing, Shanghai, Hangzhou, Shenzhen, Guangzhou, Chengdu and other first- and second-tier cities contribute nearly 80% of the box office of performances, which means that the current performance consumption market is still concentrated in first- and second-tier cities, while third- and fourth-tier cities are mainly The free viewing market is dominated by community organizations, and the stage rental market is sluggish. Therefore, if screen companies want to open up the market in third- and fourth-tier cities, their products should also be adapted to local conditions. The audiences in first- and second-tier cities have a high degree of recognition of LED displays, and spending money naturally has higher requirements for stage rental screens. Screen companies can sell high-quality products to first- and second-tier cities; The awareness of LED display screens is not high, and the requirements for stage rental screens are not high. Screen companies can retreat to the next screen to be eliminated, or cost-effective stage rental screens are sold to third- and fourth-tier cities. The price opens up the market in third- and fourth-tier cities, helping enterprises to occupy the larger stage rental screen market in my country.
Although the three major trends are improving, the current epidemic situation is repeated, and the stage rental market and overseas markets have not fully recovered, and the variables are larger than other fields. Therefore, screen companies will focus their business on these two areas in the next year, which needs to be carefully considered. Although mini/micro led has a strong momentum, it is always the plaything of large enterprises, small and medium enterprises, just take a look. For future development planning, LED screen enterprises should be more cautious and have their own judgments, so as to promote the sustainable development of enterprises.