The 20 year review of China's LED display industry

First, the basic situation of the domestic LED display industry

China's LED display industry started in the early 90s, and always maintain rapid development. According to the China optical photonics industry association LED branch of Applied Statistics and estimates, and provide relevant domestic agencies data, by the end of November 2008 to join China Guangxie LED display applications branch member units for the 204, the country has more formal professional production units of 300 ~400, in the LED display application products more than 1000 manufacturers, engaged in the LED display applications including sales, production, services and other enterprises is estimated not less than 3000. As of the end of 2007 the industry association member units of employees for 16356 people, it is estimated that the national LED display for the leading products show the number of practitioners in the application industry in about 30 thousand. 2007 output value of about 7 billion 200 million yuan, in 2008 the national output value is expected to be nearly 10 billion yuan. According to industry association of manufacturers in Northeast southwest northwest to central China accounted for 6%, accounted for 17%, accounted for 16% of North China, East China accounted for 41%, Southern China accounted for 20%.2007 years LED display sales accounted for 5.1% of the northeast, southwest and Northwest China accounted for 15.7%, accounting for 14.5%. of North China East China accounted for 30.8%, Southern China accounted for 33.8%., thus, from the industrial layout, we mainly focus LED display industry in eastern and Southern China, the two parts of the overall size of products accounted for over 60% of the country. In 2008, due to the Olympic Games in Beijing, the proportion of sales in North China is expected to rise significantly in 2008.

Two, the characteristics of the development of the industry

(a) rapid development in 2007 and in the year of 2008

Due to the rapid development of China's economy and Beijing to host the 2008 Olympic Games, so that the LED display industry to obtain good development opportunities. The industry in general compared with previous years, there is a significant growth in 2007, an increase of more than 40%, is the largest growth in recent years. The growth rate in 2008 is expected to be no less than 40%, fully showing the rapid development of China's LED display industry in 2007 and in 2008.

(two) show the continuous improvement of technology, continuous improvement of quality

LED technology and computer technology and electronic technology by leaps and bounds, LED display technology has shown rapid development. Display color spread from single and double color to color, display content conversion from text images for real-time video display, display control technology development from a single screen display to the network, from the plane to plane shape development. Domestic advanced level of the display and the quality of the international brand level has been similar, most of the domestic mainstream products and international brands of technical indicators are close to the product. But the display MTBF, refresh frequency, brightness uniformity, shell protection grade, safety requirements, EMC, product quality certification, especially the product process and international brand products have a considerable gap. The past two years, especially in 2008, the Beijing Olympic Games related projects not only have great technical innovation, the quality of the display has been greatly improved. Domestic first-class product quality is close to or exceed international brand products.

(three) the export of products increases year by year

In recent years, the proportion of export products in the national LED display market sales increased gradually. 2008 exports accounted for less than 15% of sales, in 2007 the industry association member units exports up to 1 billion 150 million, accounting for sales of 20%, in 2008 the industry is expected to export more than 2 billion.

(four) severe internal competition and adverse external environment

LED display of the company's investment in fixed assets can be relatively small, the flow of funds is not large, the industry has basically formed a supporting industrial chain, so relatively easy entry. Many new members join the industry every year. Due to the homogenization of products, technology, the majority of small and medium enterprises do not have the core competitiveness, the industry eventually formed a price war. In particular, the domestic bidding projects, there are often more than a dozen to participate in the vicious price competition, so that a considerable part of the enterprise situation is very difficult. Display sales settlement has been different from electronic products, similar to engineering projects, resulting in difficulties in collection. So every year nearly a hundred companies closed. In 2008 the international financial crisis on the domestic economy has also brought great influence, advertising will be reduced, the investment heat outdoor display would be cool, and the relevant government departments to strengthen the management of outdoor advertising, outdoor display sales in the second half of 2008 declined, so the fourth quarter of 2008 and 2009 output value of the industry especially the outdoor full color will fall considerably. At the same time, the disappearance of the 2008 Olympic Games has brought great difficulties to the development of the display industry in the year of 2009. But in recent years statistical data shows the Matthew effect between enterprises has been formed, billion yuan in 2005 sales of enterprise sales accounted for 33% of the country, in 2006 rose 43.2% in 2007 rose to 46.7%, is expected in 2008 will exceed 50%, therefore, internal competition intense and unfavorable external environment will bring challenges to the enterprise, Matthew display the industry will become more prominent.

(five) the industry has formed a supporting industry chain

LED display industry belongs to electronic equipment manufacturing industry. In the early years, most of the enterprises were founded by scientific research institutes and scientific and technical personnel of colleges and universities, and the enterprises chose LED and electronic components to develop, design and produce LED displays. From the development of the control system, the design of plastic mold and box, to be responsible for the processing of semi-finished products, is a typical Chinese self-sufficient production model. In recent years, with the development of the industry, the industry has gradually formed a clear division of labor, specializing in the production of special display LED, switching power supply, integrated circuits, plastic and chassis, such as zero