According to the latest Research Report on LED Small Space Market in Chinese Mainland in 2023 released by DISCIEN, the sales of LED small spaceµ space terminal market in Chinese Mainland will reach 20.71 billion yuan in 2023, up 13.6% year on year. The market penetration rate of COB products has shown a significant upward trend, which is related to the further maturity and development of COB technology. Especially with the rapid improvement of packaging yield and pass through rate and cost reduction, the scale of COB has further increased. It is obvious that LED displays have entered the era of micro spacing, and products have penetrated into various scenarios of professional displays (conference rooms, monitoring rooms, broadcasting halls), commercial displays (retail supermarkets, esports displays, XR extended displays), and public displays. This article looks forward to the development potential of small pitch LED displays in 2024 from two key areas: esports venues and security markets.

Standardization of esports venues and popularity of small spacing

This year, all provinces and cities in China have successfully concluded their two sessions, and the full text of their 2024 government work reports has also clarified their respective economic growth expectations. After sorting out, Huicong LED Screen Network found that sports consumption, as one of the "six major consumption areas" on par with tourism, culture, health, elderly care, and education and training, has received widespread attention in the 2024 government work reports of various regions. This is highly in line with the goal of "innovating and creating sports consumption scenes, and continuously expanding the scale of sports consumption" proposed by Gao Zhidan, Director of the General Administration of Sport of China, at the National Sports Directors' Meeting. At the same time, the sports industry in various regions has received support from various aspects in the new year. For example, esports has been included in the work plan of Shanghai

Previously, due to the successful hosting of the Hangzhou Asian Games, esports had become an official competitive sports event, receiving unprecedented attention and recognition. In 2024, this trend seems to continue to heat up. In China, CS2 and fearless contract, two new esports IPs, are about to be launched; In May, the League of Legends Mid Season Invitational (MSI) will be held in Chengdu; The Fearless Contract Chinese League will also be launched this year, officially aligning with the international stage. 2024 may be the year with the most types of international competitions landing in recent years.

The booming development of the esports industry has also driven the construction of offline esports venues, bringing new incremental space to the slowing LED display market. Due to the unique characteristics of esports venues compared to other traditional competitions, they have a strong demand for LED displays and high specifications. The "Construction Standards for eSports Venues" document released by the China Sports Venues Association divides esports venues into four levels: A, B, C, and D, and makes clear regulations on the location, functional zoning, and software and hardware systems of esports venues. This also means that compared to other displays, small pitch LED displays have a series of advantages such as high-definition, high brightness, high color saturation, low power consumption, and long service life, which has quickly made them popular in esports venues.

For LED screen enterprises, the role of LED displays in the field of esports is becoming increasingly important. On the one hand, it is possible to establish cooperation with esports related enterprises in advance. On the other hand, due to the high demand for LED displays in the esports market, enterprises need to continuously upgrade and innovate LED display technology, integrate advanced technologies such as 3D, AR/VR, AI, etc., provide diversified solutions for esports venues, and also provide audiences with a more immersive experience.

Triggered by the trillion yuan security market, the vitality of small distance technology is stimulated

In the current era of intelligent security, the importance of video surveillance systems is increasing and has become the core system of the entire security industry. In video surveillance systems, besides front-end collection and transmission systems, back-end information storage and processing systems, display systems are often underestimated and ignored. In fact, for the security industry, higher display technology brings the most intuitive core value of clearer images and richer details.

These clearer and richer images perfectly meet the development needs of security intelligence. At the same time, for LED display screen manufacturers, clearer images and richer image details contain higher analytical value, which means more market opportunities. In 2022, the output value of smart security in China reached 351.42 billion yuan, increasing from 31.7% of the total output value in 2015 to 38.4%. In 2023, the annual output value of the national security industry was about 1010 billion yuan, with a growth rate of 6.8%. The security market has only increased without decreasing, and the demand for terminal displays has always been at a high level of growth.

The fierce market competition and the maturity of new packaging technologies have jointly promoted the miniaturization of LED displays. According to the data of Lotu Technology, in 2023, the sales scale of P1.5 and below products will account for 61% of the small pitch LED display market in Chinese Mainland. At the recently concluded ISLE exhibition in March, based on the LED products released by individual manufacturers, COB/MIP small pitch products have become one of the most popular product routes, achieving full coverage of mainstream small pitch and micro pitch applications, mainly concentrated in P1.8-0.4.

Overall, the vitality of the small pitch LED display screen market continues to be stimulated, and the recognition of the terminal market has significantly increased. With the decrease in prices and technological progress, it will gradually occupy the security large screen market in the future.

According to industry analysis, the domestic LED small pitch and micro pitch market will maintain a growth rate of over 10% in the next five years, and the market size will continue to expand. It is expected to exceed 40 billion yuan by 2028, with multiple driving forces from policies, industries, new scenarios, new technologies, product substitution, and self updating. However, opportunities and risks often go hand in hand. It should be noted that as the market size continues to expand, market stratification is also very evident. Therefore, for new LED companies, it is particularly important to clarify their target market and accurately position their products.

Reprinted to: Huicong LED