Industry Concentration Is Further Integrated in Small Pitch LED

After experiencing rapid development, the small-pitch LED display industry, while showing a broader market prospect, has already moved out of the incremental market era in which everyone can make money. With the combined influence of factors such as the external environment and internal development in recent years, the industry concentration will continue to increase, and it has become a consensus in the industry.


First of all, in micro-pitch display represented by Mini LED and Micro LED, the huge R&D cost puts extremely high requirements on the capital, talents, operation and other capabilities of enterprises. All of this is obviously unbearable for small and medium-sized enterprises. Only top brands can support the promotion of their business in related fields. The micro-pitch display has undoubtedly become a new target for maintaining high-quality profit margins for enterprises, which further widens the gap between head enterprises and small and medium-sized enterprises.


The impact of the social factors cannot be ignored. Although the public health emergency in the past two years has affected the entire industry, the degree of impact on different enterprises is obviously different. When market demand shrinks, considering the continuous provision of services, like follow-up maintenance, customers will naturally be more inclined to choose leading brands with better reputation.


The industry has witnessed shortages of raw materials and price increases in recent years. Leading brands could cooperate with upstream suppliers to ensure the continuous and stable supply of raw materials without affecting production and operation. In addition, it is precisely by virtue of the huge shipments that leading brands also have higher bargaining power in terms of raw material supply. This is difficult for small and medium-sized enterprises to achieve in terms of reducing costs and expanding profit margins. Not only that, top brands enjoy higher popularity and reputation with higher brand premiums, making them more resistant to potential risks.


The current small-pitch LED display industry is undergoing a new round of shuffling, and as a result, brand concentration continues to integrate. Under the continuous influence of factors such as the rapid development of Micro LED technology and the normalization of epidemic prevention and control, it is expected that the industry brand pattern will be further integrated in the future.