Small-pitch LEDs have a huge expected gap, and the market is worried that the industry will approach the ceiling, and the growth rate will slow down significantly. We believe that the small-pitch industry is still very prosperous. The small spacing in the professional display market penetration rate is only 20%, the technological progress + cost reduction promotes the opening of a huge commercial market, and the market space has great potential. It is expected that the small-pitch market will maintain a high growth rate of more than 50% in the next three years, and domestic related industry chain manufacturers will benefit from this.
1. Small-pitch bursts drive LEDs to show rapid growth in the industry, and Chinese companies have obvious competitive advantages. Since 2015, the small-pitch market has experienced an explosive growth, with significant advantages in terms of brightness, color, and reliability. In the professional display market, the rapid replacement of LCD and DLP splicing screens, the current penetration rate is close to 20%, and technological progress and cost reduction promote small spacing. The price/performance ratio continues to increase and the replacement space is huge. Mainland China is the world's largest LED production base, and it is in a dominant position in the global LED display field. The flip-chip COB application will greatly improve the small-pitch performance and is expected to promote the rapid penetration of small-pitch into commercial and civilian markets.
2. The commercial market is about to break out, and the small-pitch boom continues to rise. The commercial market is larger than the professional display market, and the improvement in the small-pitch cost-effectiveness is expected to drive its rapid penetration in the commercial market. The rapid development of the night travel economy brings new opportunities for small distance applications. Innovations in multi-domain operating models such as film, advertising, sports, and entertainment are expected to continue to push the small-pitch boom. In 2017, the global market size of small-pitch is about 6 billion yuan. According to estimates, in the segmentation of the commercial market, there will be 3 billion yuan in market space in the future. It is expected that the small-pitch market is expected to maintain a high growth rate of more than 50% in the next three years. Domestic small-spacing leading companies Liard, Chau Ming Technology, and Ai Bisen are expected to benefit from the industry's growth.
3. Small-pitch terminal manufacturers are mainly in China, and domestic packaging companies have significant advantages. Compared with the traditional LED display, the small-pitch LED barrier is relatively high. The terminal manufacturers are mainly Chinese companies Liard, Chau Ming Technology, Ai Biesen, etc., and the scale and growth rate are both global leading. Therefore, the domestic small-pitch packaging enterprises Dongshan Precision, Ai Bison and other supporting advantages are significant, and it is expected to grow with the rapid growth of domestic small-pitch terminal manufacturers in the future.
4. Chinese companies actively deploy flip chip and COB technology to lead the development trend of small pitch Flip-chip and COB packaging technology can greatly improve the small pitch in terms of pixel density, manufacturing cost, reliability, etc. The upstream and downstream enterprises of China's LED industry chain have been deployed from chip, package and application, and have developed relevant The technology will gradually be put into production in 2018, which will open the pace of small pitch to the direction of MiniLED.
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