The data shows that in 2012, the price of LED display continued to decline, with a year-on-year decline of 15%-20%. The reason is that powerful large manufacturers hope to eliminate some small and medium-sized manufacturers through price wars. The drop in prices further compressed gross profit margins. According to industry insiders, the current channel-based LED electronic display manufacturers' product gross profit rate has dropped to 10%-15%, and the engineering channel's product gross profit rate is still above 20%.
The LED electronic display industry has entered a period of integration, and some small and medium-sized enterprises will be gradually eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to take advantage of the capital market and their own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industry concentration of LED electronic display will increase rapidly.
Since the LED electronic display industry has entered a mature stage, its market size will maintain a steady growth trend. Industry insiders predict that the growth of the LED electronic display market will remain at 10%-20% in the next few years. In the future, the profit growth of LED electronic display will mainly come from the traditional inkjet, neon, billboard alternative market, as well as the high-definition, 3D, intelligent and other multi-functional high-end LED electronic display market.
The application of LED display screen has become wider and the economy is recovering. In 2013, LED electronic display screen will be a year when both technology and market become mature.
