Biggest Signage Show in China
Strategies Unlimited was invited to present at one of the world’s biggest LED Signage Shows, giving an overview of the worldwide LED signage market and trends for 2015 during the conference. We will also update our signage market data in our upcoming report, “The Worldwide Market for LEDs 2015,” which will publish in April. Although this conference was held right after the Chinese New Year Holidays, which led to fewer attendees than 2014, we still saw all the major LED signage suppliers demonstrate their latest LED signs and outdoor/indoor displays for 2015.
China is the world factory of signage – Big becomes bigger
According to Strategies Unlimited’s “The Worldwide Market for LEDs 2015,” Chinese signage suppliers account for 80%~85% market share in the world. As a result, China’s signage supply chain is fully matured from LED chips to system assembly. We see the top 5 signage system suppliers have gained market share from small-to-medium players for past 3 years due to the scales, and we believe more and more suppliers will be merged or acquired by the top suppliers in 2 years. The top Chinese signage system players include Unilumin, LianTronics, Absen, and Shenzhen RuiTuo. They not only acquired small-to-mid size competitors but also have tried to cooperate with media and commercial agents through investments. Therefore, big suppliers become bigger.
Smaller pitch size display becomes the mainstream: Will UHD LED Display replace DLP and video walls?
1 inch pitch (P1) LED display
All signage system suppliers launched smaller pitch size for both indoor and outdoor. Indoor sizes used to use 3mm to 9mm 2~3 years ago, and migrated to 2mm to 5mm last year. In 2015, we see a pitch size of 1mm to 4mm. The resolution has reached Full HD (1920x1080 MPs), and some even reached 4K UHD (3840x2160 MPs). In China, more and more hotels, conference rooms, exhibition venues, government buildings, and control rooms are equipped with or replaced by HD display systems. We believe traditional DLP and video walls will be replaced by HD displays for government and commercial advertisements because: 1) People don’t need to turn off the lights while using HD Display for presentation, but DLP requires the lowering of the background lights; 2) We only need one display during the conference instead of banners and projector screens, which could lower the cost in the long term. As a result, we will see more and more hotels equipped with HD displays in China and then in the US/EU market. However, it still takes years to penetrate for household application, due mainly to the cost. In China, we heard some millionaires installed UHD display for the party, but this was a special case.