The global LED video wall market is booming, according to new research, but the predominantly Chinese manufacturers are pivoting to open up new markets as the Trump government continues to apply (or threaten to apply) new tariffs.
The global market hit revenues of $5.7 billion last year, with year-on-year double digit growth expected out to 2023, according to market researchers Futuresource Consulting.
“As the US-China trade war intensifies and political indications suggest a continuing period of punitive tariffs,” says Futuresource in its 2019 Video Wall Display Solutions Report, “Chinese companies explore ways to accelerate expansion into Southeast Asia, the Middle East and Latin America.”
“Upwards of 500 companies in China have R&D and manufacturing capabilities for LED video wall,” Senior Market Analyst Hope Lee told a crowd recently at an LED business event in Shenzhen. “With all this competition, the sector is going into overdrive and vendors are not only considering new international markets, but also placing renewed focus on durability, reduced power consumption and innovation.”
“Narrow pixel pitch (NPP) remains a key battleground, with companies migrating more of their products to sub-2.5mm. With stiffer competition, vendors are now focusing on quality as a differentiating factor, and our forecasts show that by 2021, NPP will have overtaken LCD video wall in annual revenue terms.”
The report says China’s Leyard is the number one manufacturer on the planet of narrow pitch LED – and has been for the last three years.
The data is not in the Futuresource press release, but Leyard in its own PR says it is tops in both the $2.6 billion narrow pixel pitch LED video wall market and in LCD-driven control room applications in the Americas.
Leyard, pulling from the report, notes the narrow pixel pitch LED market grew by 33 percent last year, and interestingly, the LCD video wall market also grew by 18 percent year-over-year growth, owing to increasing penetration in control rooms.
Says Futuresource: As international expansion becomes a core business objective for many China-based companies, understanding of local markets is a fundamental requirement. From business culture to channel dynamics and vertical demand, there are many elements to consider for success, beyond securing a local physical presence.
In addition to geographic expansion, many Chinese companies are also focusing on acquisition and business model flexibility, completing a three-pronged strategic assault that is likely to yield strong financial growth.
“As the industry matures, flexibility and versatility are crucial for success, and singular project-based business models will start considering repeat business and run-rate focused activities,” says Lee. “Vendors with rental specialism are starting to look at opportunities in the fixed installations space. Conversely, companies have the fixed installation strength are expanding their rental business. It’s all about shaping the landscape to ensure the most viable long-term solution is delivered to the customer.”
Despite wider display industry turmoil, LED technology will remain resilient over the long term, continuing to outpace growth in LCD and projection, and on track to achieve global revenues of $11.7 billion by 2023 according to Futuresource forecasts.
The 122-page Futuresource global LED display market is something manufacturers buy (not sure for how much). The information is collected using both primary and secondary research methodologies, with LED sales data built up directly from vendors.
Futuresource is one of a small handful of companies with credible data on the LED and signage market, notable in a sea of worthless industry reports cranked out of research factories in Pune, India.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.