Don't just "stare" at the lighting, this LED downstream application area also has a company that earns "pots full of pots"!
LED downstream applications include display, backlight, lighting, and other application fields. In 2016, the market size of China's LED downstream sector reached 369.7 billion yuan, with the four major segments accounting for 12%, 11%, 66%, and 11% respectively. According to statistics, LED lighting remains the largest downstream application, while the other three areas also contribute significantly to the overall market.
LED display is one of the most prominent downstream applications after lighting. It has attracted numerous companies, including industry leaders like GEM, Liarde, Lian Guang Optoelectronics, Zhouming Technology, Alto Electronics, Aibisen, and Lehman. Additionally, New Third Board companies such as Yuanheng Optoelectronics, Lianchengfa, Xinyasheng, Foshan Qingsong, and Huaxia Glorious have also shown strong performance. Among non-listed companies, Shanghai Sansi, Powerful Color, and Austrian Video are emerging as key players in the field.
Recent first-half results from listed companies reveal a clear performance gap. Liarde reported revenue of 2.512 billion yuan and a net profit of 370 million yuan, maintaining its lead over others. Lianjian Optoelectronics and Zhouming Technology also performed well, surpassing the 1 billion yuan revenue mark. Alto Electronics saw double-digit growth in both revenue and net profit, while Aibisen and Lehman experienced declines in net profit.
In the New Third Board segment, companies like Yuanheng Optoelectronics, Lianchengfa, Foshan Qingsong, and Huaxia Guangcai saw growth in revenue and net profit due to rising demand in the display market. However, Qipu Optoelectronics, Diming Technology, and Shenglong Shares faced significant declines.
From the first-half results, it’s evident that brand concentration in the LED display market has increased. Major players like Liarde, Lianjian Optoelectronics, and Zhouming Technology continue to expand their market share, pushing smaller companies out. The data also shows that 10 companies achieved revenue growth during this period.
Powerful Color believes that high-density (small-pitch) LED displays are the main growth driver in the market. While pricing in this segment remains unclear, commercialization is still in early stages. Despite this, the company is actively working on promoting high-density solutions, offering cost-effective options and even DIY products that could become a future trend.
Shanghai Sansi agrees with the growing importance of small-pitch LED displays. With advancements in core technology, high-definition capabilities, and ease of maintenance, these displays are expanding into new markets such as security, corporate communication, TV broadcasting, and conference centers, becoming a key driver in the industry.
Both Shanghai Sansi and Powerful Color predict that the small-pitch trend will intensify in the second half of the year. As LED display technology improves, costs decrease, and products mature, the industry is expected to grow rapidly. According to GGII data, the output value of China’s LED display industry reached 42 billion yuan in 2017 and is projected to hit 57.7 billion yuan by 2020.
The rise in raw material prices has created challenges for many companies. Small and medium-sized enterprises are struggling, with some facing severe difficulties. In response, several LED display companies have opted to raise prices to maintain profitability. Powerful Color suggests that automation and strategic supply chain partnerships can help offset rising costs without increasing product prices.
Shanghai Sansi adds that the push for environmental compliance and the demand for multilayer PCBs and boxes have led to higher costs. While this may eliminate some low-cost competitors, large manufacturers are better positioned to manage these changes.
Looking ahead, OLED and MicroLED technologies pose a challenge to traditional LED displays. OLED offers self-illumination, wide viewing angles, and low power consumption, while MicroLED provides independent red, green, and blue light sources for superior image quality. Experts believe MicroLED has stronger potential due to its wider color gamut, higher brightness, and longer lifespan.
However, both Shanghai Sansi and Powerful Color note that OLED and MicroLED are still in early development stages, mainly used in small screens and wearable devices. Large-scale applications face technical hurdles, and LED remains the dominant force in the market. For now, LED is the mainstream solution, with a solid commercial foundation and widespread adoption.
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