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Small-pitch LEDs have huge expectations for the sector, and the market fears 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 booming. The small gap in the professional display market penetration rate is only 20%, technical progress + cost reduction to promote the opening of a huge commercial market, the market has great potential for space. It is expected that the small-pitch market will maintain a high growth rate of over 50% in the next 3 years, and domestic related industrial chain manufacturers will benefit from this.
1.Small-pitch bursts drive LED display industry to grow rapidly, Chinese companies have obvious competitive advantages
Since 2015, the small-gap market has seen an explosion of growth, with significant advantages in terms of brightness, color, reliability, etc. In the professional display market, rapid substitution of LCD and DLP splicing screens, the current penetration rate is close to 20%, and technological progress and cost reduction push small gaps. The cost-effectiveness continues to increase, and there is ample room for substitution. Mainland China is the world's largest LED production base, and it is in a dominant position in the global LED display industry. Flip-chip COB applications will greatly improve the performance of small pitch, and it is expected to promote the rapid penetration of small-pitch commercial and residential markets.
2.The commercial market is about to erupt
3.Small-pitch terminal manufacturers mainly in China, domestic packaging companies have a significant advantage
Compared to traditional LED displays, LED barriers with a small pitch are relatively high. Terminal manufacturers are mainly Chinese enterprises Liad, Zhou Ming Technology, and Absen etc., and their scale and growth rate are leading globally. Therefore, the domestic small-diameter package companies Dongshan Precision, Abbeson and other supporting advantages are significant, and the future is expected to grow with the rapid growth of domestic small-footprint terminal manufacturers.
4.Chinese companies are actively deploying flip chip and COB technology to lead the development of small gaps
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With the continued growth of small-pitch industries, the most profitable companies are Aibison, Chau Ming Technology, and Liaard. Due to the huge elasticity of demand for encapsulated lamp beads in the downstream, it shows that Dongshan Precision and Guoxing Optoelectronics are extremely high in package companies. Benefited, the upstream of the industrial chain will be transmitted, and chip companies Huacan Optoelectronics and Sanan Optoelectronics will enjoy a market dividend. The promotion of flip-chip+COB technology is expected to drive the long-term growth of small-pitch commercial and civilian markets, benefiting companies in the entire industry chain. (Source: China Finance Network)