How Much Do You Know About the Barriers to Entry in the LED Display Industry?

Publisher: Supplier of LED Display Time: 2020-10-15 Views: 3377

With the continuous improvement of technical indicators such as dot pitch, stability, grayscale, and brightness, LED displays are also showing their unique advantages in more and more fields. It will maintain a strong growth space for a long time, but it will also encounter problems in the development process of all industries.


1. R&D and technical barriers


As a high-tech industry, the LED display and lighting industry involves many disciplines such as optics, thermals, material science, electronics, computers, software, automation, mechanical engineering, decorative arts, etc., and the above disciplines need to be used comprehensively and systematically. technical barriers. At the same time, because LED products are mostly customized and personalized, they have higher technical requirements for production technology, quality control level and stability. Problems in any part of production may affect the quality, life and performance of the product.


2. Financial barriers


The LED display and lighting industry is a capital-intensive industry. Small enterprises with a low degree of automation cannot guarantee product quality and production capacity, so they can only conduct simple price competition in the low-end market. In the current market environment, in order to participate in the bidding to undertake large-scale projects, it is necessary to invest in advanced machinery and equipment to improve production capacity and technical level. In addition, the common production mode in the industry is production and processing engineering installation. The engineering installation process leads to a long capital return cycle, low asset turnover efficiency, and high capital scale requirements.


3. National Industrial Policy Support


A number of industrial policies proposed by the State Council, the Ministry of Science and Technology, the National Development and Reform Commission and local governments have played an important role in promoting the development of the entire LED industry and the optimization and upgrading of the industrial structure. Under the background of industrial policy support, the scale of the industry is expanding and the industrial chain is becoming more and more complete, creating favorable conditions for enterprises in the industry to improve their competitiveness and participate in international competition. It is expected that a group of domestic companies with independent intellectual property rights and core competitiveness will emerge. backbone enterprises.


4. the product has a wide range of applications


Various applications of LED are in the ascendant, and domestic LED has gradually formed hundreds of LED application products such as indication, signal and display, backlight lighting, etc., which are widely used in landscape decorative lighting, large-screen display, traffic lights, home appliance digital display and indicator lights, car lights , mobile phones, digital cameras, computers, LCD TV backlight and other fields. With the development of technology, LED has also appeared in new application directions, such as aerospace, medical, agriculture and other fields. The steady growth of the market share of various LED applications and the continuous emergence and development of emerging application fields have created a good market space for the development of the LED industry.