China LED display market opportunities and challenges coexist

By the stadium with LED-display.cnLEDw.com/ >LED display demand driven by rapid growth in recent years, China's LED display applications gradually increased. At present, LED has been widely used in banks, railway stations, advertising, sports venues. The display also changes from traditional monochrome static display to full color video display.

In 2006, the display market demand Chinese LED was 4 billion 50 million yuan, an increase of 25.1% over 2005, of which full-color display demand amounted to 1 billion 710 million yuan, accounting for 42.2% of the overall market, double color display demand in second, demand amounted to 1 billion 630 million yuan, accounting for 40.2% of the overall market, the price is cheaper because of monochrome display, demand for 710 million yuan.

Figure 1 2006-2010 China LED display market size data source: CCID Consulting, 2007,09

With the Olympic Games, World Expo is approaching, LED display will be widely used in sports venues and road traffic instructions, LED display in the application of sports Plaza will be rapid growth. With the stadium, advertising field for full-color display demand will continue to increase, the proportion of full-color LED display in the overall market will continue to expand. 2007-2010, China's LED display market CAGR will reach 15.1%, in 2010 the market demand will reach $7 billion 550 million.

Figure 22006 China LED display market color structure data source: CCID Consulting, 2007,09

Major events to become the market booster

In 2008 the Olympic Games will directly promote the rapid increase in the number of the stadium, the screen at the same time, the Olympic Games with the screen on the LED display quality is higher, therefore, the use of the proportion of high-end screen will also increase, enhancing the quantity and quality of the LED display drive market growth. In addition to sports venues, the other is directly promote the field of advertising to domestic and foreign advertising companies Olympic Games and other major activities held in the World Expo Olympic Games and World Expo will be optimistic about the business opportunities it will increase with the number of screen advertising to improve their own income, so as to promote the development of the market for advertising screen.

The Olympic Games held in World Expo and other major activities will be accompanied by a lot of large-scale activities, government, news media and various organizations are likely to hold all kinds of activities between the Olympic Games and World Expo, some activities may require a large screen LED, these requirements in addition to directly drive the screen outside the market may also drive LED display rental market.

In addition, the meeting will also stimulate NPC and CPPCC government departments for LED display needs, and the LED display as an effective public information dissemination tool, may be more in NPC and CPPCC period by government departments, such as government agencies, transportation departments, tax departments and business departments.

Difficulties in the field of money collection, market risk coefficient

Stadium, outdoor advertising is China's LED display market, the two largest application areas. The application of LED display belongs to the nature of the general engineering, such as stadiums, advertising and other large LED display project is mainly through public bidding, and some enterprises display project is mainly through the way of invitation to bid.

Due to the obvious nature of the LED display engineering class, in the process of the implementation of the LED display project often need to face the problem of payment. Due to the stadium for government projects, the funds are relatively abundant, so the pressure on the face of the LED display manufacturers to lower remittances. And belong to the same LED display important application fields in the advertising field, due to uneven economic strength and investment projects, project investment funded LED advertising screen display is mainly dependent on advertising costs to maintain the normal operation of the enterprise, and later for investors LED display advertising costs are more flexible, can not guarantee adequate investment ample funds, LED display production enterprises have been in advertising in the project to a large number of remittances. At the same time, many China LED display production enterprises, some enterprises in order to compete for market share at a price war gimmick, in the course of project bidding, emerging price bidding phenomenon, the competition among enterprises increasing pressure. In order to ensure the healthy development of enterprises, enterprises are facing the risk of reduced remittance, reduce bad debt, the number of enterprises, at present, some of the major domestic enterprises in the production of LED display advertising to undertake the project, take a more cautious attitude.

China will become the world's major production base

At present, many enterprises engaged in the production of LED display screen, at the same time, the impact of foreign companies LED display price is too high, in the LED display market in China to the local enterprises. At present, the domestic LED display manufacturers in addition to the supply of domestic demand, but also continue to export products to foreign markets. In recent years, affected by cost pressures, some well-known international LED display enterprises gradually moving production to China, such as business in Beijing to set up a display production base, Lighthouse also has a production base in Huizhou, Daktronics, Fort Rhine have set up factories in china. Display manufacturers and MITSUBISHI did not enter the China market, the development prospects are also optimistic about the domestic market to enter the domestic market, with the international production of LED display manufacturers constantly shifting production to China, and many domestic LED display local enterprises, China has become the main production base of the global LED display.