In 2022, due to factors such as repeated outbreaks of the epidemic and sluggish market demand, the overall demand in the large-screen splicing market will be sluggish, and the sales of small-pitch LED and flat-panel splicing products will drop by more than 10% in the first three quarters, indicating that the current Omicron poisonous The unexpected impact of strains on China's economy has clearly affected the overall direction of the industry.

Sales of small-pitch LEDs fell by 7.7% in the first three quarters of 2022, and peak seasons are not busy. The sales of small-pitch LEDs in mainland China were 11.6 billion, down 7.7% year-on-year. Among them, since the second quarter, due to the local recurrence of the epidemic, small-pitch LEDs have declined for two consecutive quarters, with a decline of 15.2% and 10% respectively. Although the third quarter did not meet expectations, it has eased. However, flat-panel splicing products continue to decline at a low level, and small-pitch LEDs continue to squeeze part of the space for flat-panel splicing.

2021Q1-2022Q3 Quarterly Scale Changes of Panel Splicing & Small Pitch led projector screen in Mainland China - Sales

Domestic performance generally fluctuates greatly, and Leyard ranks first. Dahua, BOE, and Lianjian have grown against the trend. According to AVC Revo's "2022Q3 China Mainland Small-pitch LED Market Research Report" data, by 2022 In the third quarter, Leyard, Unilumin, and Qiangli ranked the top three in terms of sales. Leyard’s sales were 2.72 billion yuan, which was basically the same as that of the same period last year, and the ranking still ranked first. In addition, under the influence of repeated epidemics, the domestic performance of some companies has fluctuated greatly, while Dahua, BOE, and Lianjian have grown against the trend.

2022 (Q1-Q3) Sales Share of Small-pitch LED Brands in Mainland China - Sales


Enterprises are "suffering inwardly", and transaction prices continue to drop. According to AVC Revo's "2022Q3 China Mainland Small Pitch LED Market Research Report", the average market price has basically remained at 16,000 since Q1 in 2022. / square meter has been at a low level, mainly because the cost of upstream raw materials is basically controllable, and the low-price competition brought about by the reduction/delay of project budgets on the demand side, while the market share of products below P1.2 in the third quarter has an upward trend. But on the whole, P2.5/P2.0/P1.8 low-priced products are still expanding the market in large quantities. Taking the actual bidding prices of P1.2 and P2.5 products as an example, according to the AVC Revo bidding project information database, the average price of P1.2 bidding in the third quarter of 2022 is 43,000 per square meter, which is the same as in the first half of the year. 45,000/square meter, down 2,000 yuan/square meter. The average price of the P2.5 winning bid was 6,500 yuan/square meter, which dropped by more than 1,000 yuan/square meter compared with 0.76/square meter in the first half of the year.

2020Q1-2022Q3 Change Trend of Terminal Average Price of Small Pitch LED Market in Mainland China


Prediction: The market environment is improving. In 2023, the small-pitch LED market will rebound from a low level, and the growth rate will exceed 10%. Comprehensive judgment, under the background of a high growth base in 2021, sales are expected to reach 16.91 billion yuan in 2022, a year-on-year decrease of 6.9% , It is still difficult to turn "positive" in the fourth quarter. The market will recover in 2023, and the growth rate is expected to exceed 10%, with sales reaching 18.8 billion yuan. On the one hand, the new version of the "Twenty Points" epidemic prevention and control policy issued by the National Health and Medical Commission recently is favorable. After the optimization and adjustment of epidemic prevention and control measures, it is expected to promote the rapid recovery of enterprises and offline consumption, and the economic situation will improve. On the other hand, the market has responded positively. Under the guidance of the digital society and digital governance policies, government-related construction investment is improving. Information transformation projects such as transportation, water conservancy, mines, and industrial parks will continue, and recovery is expected to accelerate in the second half of the year. In addition, with the active participation of upstream chip and packaging/module manufacturers and the technological innovation of leading brands, the continuous iteration of small-pitch LED products will inevitably squeeze the growth space of competing products such as projection and flat panel splicing. LED virtual scene application solutions will continue to expand into new areas, and enterprises will show their talents and become a profit growth point.