Opportunities and challenges of the global LED display market in 2022

In 2021, the market demand for LED displays will grow significantly, with the global scale reaching US$6.8 billion, a year-on-year increase of over 23%. It is worth noting that with the expansion of domestic demand, nearly 40% of the world's display screens are in China.

In the past two years, the sales of LED display screens in the channel category have increased significantly, and the industry concentration has further increased. The market share of the top ten manufacturers will increase to 71% in 2021, and it is expected to continue to grow this year.

Terminal demand drives the demand for upstream products of LED displays to increase year-on-year

In the chip field, the market size of LED chips will jump to US$3.6 billion in 2021, and the rare 45% growth rate is mainly due to the growth of lighting, automotive LEDs, displays and other fields. Among them, the LED display chip market size is close to 700 million US dollars, an increase of nearly 60% year-on-year.

Although the shipment volume of Mini LED display chips was lower than expected, its growth trend was good. According to statistics, with the chip side as the statistical caliber, the total shipments of 4-inch Mini LED display epitaxial wafers will increase by nearly 50% in 2021. Mini LED chips are not only used in the market below P1.0, but also in the high-end market of P1.2 and even P1.5.

The concentration of the LED display chip industry continues to rise, and the market share of the top five manufacturers in 2021 will reach over 90%. With the rapid development of the display chip market in recent years, the number of manufacturers entering this field has gradually increased, and the market competition has intensified.

In the packaging field, in 2021, mainly driven by automotive LEDs, lighting and LED displays, the global LED packaging market will reach US$17.65 billion, a year-on-year increase of 15.4%.

Among them, the LED display packaging market size is about 1.7 billion US dollars, accounting for 10% of the entire packaging field. From 2020 to 2021, after experiencing the Sino-US trade friction, the industrial concentration will be further improved, and the industrial concentration of the top 10 enterprises will increase by 10% to 84%. In the future, with the gradual expansion of production capacity, the industrial concentration will be further improved. Manufacturers such as National Star and Jingtai have recently expanded their production capacity.

In the future, opportunities and challenges coexist for LED displays. The exploration and development of emerging fields is inseparable from the efforts of major manufacturers and the support of the government. In the LED display industry with high industrial concentration, the growth point of the interests of each enterprise lies in the continuous innovation of technology and the layout in new application fields.

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