The LED electronic large screen industry has developed to this day. Although it appears to be a customized engineering industry with significant profits on the surface, there are only a few companies that have been profitable since the beginning of its development. Many companies may seem prosperous, but in reality, they have already begun to decline internally, just without being exposed to the world. Some once famous old established companies are gradually withdrawing from the market in fierce competition, while most companies are struggling. How can LED display manufacturers survive in the face of adversity?
No matter how successful the enterprise used to be, it cannot withstand the fate of being eliminated by the market. However, it is not that these old established enterprises are worse managed than small enterprises. In the process of development, due to various reasons, they are gradually surpassed and marginalized by newcomers. Even though some enterprises are still operating, they are struggling. But in terms of the entire LED electronic large screen industry, the development of China's LED display application industry was later than that of foreign countries. However, with LED display manufacturers continuously focusing on research and innovation, the upstream and downstream industrial chains have also been continuously improved. Now, China's LED display industry has achieved a curve overtaking. 80% of the global production capacity comes from China, and most of this capacity comes from established enterprises.
With high-definition LED displays becoming ubiquitous, the market is gradually reaching saturation, making it increasingly difficult for many large, medium, and small enterprises to develop. Although small pitch LED display screens produced by domestic LED display manufacturers have achieved a breakthrough and market demand continues to rise, market demand in segmented fields such as LED transparent screens, LED irregular screens, LED time tunnel displays, LED interactive tile screens, and internet famous LED sky screens is also constantly increasing. But these are niche fields with limited demand, and not every enterprise has the strength to seize these segmented areas.
Therefore, on the surface, although segmented fields have indeed broadened market channels for major enterprises, they have not brought fundamental improvement to those enterprises with insufficient strength, but instead made their development increasingly difficult. Taking small pitch LED display screens as an example, with the arrival of smart cities, safe cities, commercial implementation of 5G technology, and "4k first, 8k balanced", market demand is constantly increasing. But not every enterprise can seize these markets, after all, not every enterprise has such strength and technology. At present, the market for small pitch LED displays is dominated by the top ten manufacturers in the industry, while the rest of the market space is divided by most of the enterprises, so there is a situation of more people than there are porridge.
Another reason why major LED display manufacturers are facing such difficulties in development is that outdoor advertising has been shut down and rectified in urban governance. LED outdoor displays themselves are an important information dissemination medium for outdoor advertising media, and those screens that have been shut down or even forcibly removed will inevitably affect the profits of advertisers and advertising media. In addition, the approval process for outdoor advertising installation is not only complex, but also takes a long time, requiring a lot of manpower and material resources. Many advertisers are unwilling to install LED outdoor displays, resulting in a sharp decline in market demand in the field of outdoor advertising displays.
The concentration of the high-definition LED display industry is increasing, resulting in a situation where the strong remain strong and the weak remain weak. This is an inevitable trend in the development of the LED electronic large screen industry, and companies with weaker capabilities may face the situation of being eliminated or acquired at any time. When LED electronic screens first emerged, pigs in the wind could fly, and any enterprise could seize a lot of resources. But with the growth of the number of enterprises and the sharp decline in market demand, this golden period of development has become a thing of the past. If enterprises do not change their traditional business philosophy and focus on research and innovation, they will eventually be eliminated from the market.
So, how can LED display manufacturers survive from adversity? Although large enterprises have strong financial strength and technical manpower, they cannot seize all market resources. Therefore, major LED screen companies can deeply cultivate their niche fields, continuously explore market demand, focus on research and innovation, utilize their existing resources, combine their actual development status, and pay attention to market development trends to seek more benefits. This requires enterprises to focus on key areas based on their actual situation, while also cutting costs and making breakthroughs in key areas.
The current high-definition LED electronic large screen industry is transforming from extensive to intensive, and the needs of end users are gradually developing towards customization, personalization, and diversification. Therefore, some small businesses rely on creating popular products to seize segmented markets, which indeed brings certain profits to the enterprise. However, relying solely on creating popular products cannot make a company invincible. Companies also need to pay attention to service and ensure that customers have no worries after purchasing.
In summary, the current development of the LED electronic large screen industry is becoming increasingly difficult, with a higher degree of industry concentration and a trend of constant strength and weakness. The outdoor advertising market space is constantly being compressed, and the market demand in other display fields is also constantly declining. Major enterprises feel immense pressure, and even some old established enterprises are being eliminated from the market. So, how can LED display manufacturers survive from adversity? We can delve deeper into niche areas, provide excellent products and services, and ensure customers have peace of mind after purchasing.
