Shenzhen Lianchengfa Technology Co., Ltd.

Due to seasonal troughs and epidemic prevention and control restrictions, the market share of LED displays in China dropped from 64.8% in the previous quarter to 53.2% in the first quarter of 2022.

Since the global spread of the novel coronavirus in the second quarter of 2020, China has steadily occupied more than 50% of the LED display market. Although the first half of the year is a traditional low season, China can still maintain a market share of about 50% and account for more than 60% of the market share in the second half of the year. In fact, in the fourth quarter of 2020, when it held the highest market share, it even reached 68.9%.

However, in the first quarter of 2022, in addition to seasonal factors, the epidemic prevention policies of local governments restricted the flow of personnel in the industry, reduced logistics capacity, and increased logistics costs, resulting in longer business processes and order cycles. Problems such as the inability of the outgoing goods and the inaccessibility of the incoming parts occurred frequently in March and April. As the prevention and control measures are implemented in important cities such as Shenzhen and Shanghai, the transportation of products and components between these cities and surrounding cities has become difficult, and even if the transportation is completed, installation and commissioning will not be so easy. At the same time, some government projects and enterprise projects have been tilted towards epidemic prevention as their budgets have been tilted, resulting in repeated reductions in project demand. In the fourth quarter of 2021, China's market share rose to 64.8%, but fell sharply to 53.2% in the first quarter of 2022.

It can be seen from the shipment status of various brands that the growth engine of the entire LED display market is smaller pitches below 2mm. In the first quarter of this year, the global sales of small-pitch products increased by 30.7% month-on-month, but increased by 40.3% year-on-year. At the same time, excluding the Chinese market, small-pitch products even achieved a month-on-month double growth, 2.6% and 94.7% respectively. Among them, in North America, Western Europe and Asia-Pacific, the shipments of small-pitch products increased by 119.5% in North America, 91.1% in Western Europe, and 70.6% in Asia-Pacific. It is worth noting that for the first time since the third quarter of 2020, Samsung has regained the first share in the small-pitch market display market excluding China.

Without preparation, every brand will face some difficulties in the face of increasing uncertainties in the global market.

However, in the highly unstable torrent of the entire market, the growth momentum of small-pitch display products seems to be insufficient to further boost the LED display market. China's epidemic clearance policy is expected to affect not only the first half of 2022, but also the second half of 2022. Omdia predicts that rising inflation in each country may cause governments and businesses to delay or reduce investment in commercial display upgrades and additions. Although compared with LCD (liquid crystal) display products, the shipment performance of LED displays in the first quarter was relatively better, but this negative impact and uncertainty may bring unexpected difficulties to the LED display market. Therefore, each supplier needs to make more sensitive and timely adjustments to changes in each market in the coming time.

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