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
The small-gap market has seen an explosion since 2015, 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
The commercial market is larger than the professional display market, and the improvement in small-pitch cost-effectiveness is expected to promote its rapid penetration in the commercial market. The rapid development of the overnight economy has brought new opportunities for the application of small distances. The innovations in the operation modes of films, advertisements, sports, recreation and entertainment in many fields will continue to promote the upward trend of the small distance. In 2017, the small-pitch global market scale is about 6 billion yuan. It is estimated that 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 will maintain a high growth rate of over 50% in the next 3 years.
3. Chinese companies are actively deploying flip chip and COB technology to lead the development of small gaps
Flip chip and COB packaging technology can bring great improvement in many aspects such as pixel density, manufacturing cost, reliability, etc., with small pitches. Chinese upstream and downstream companies in the LED industry chain have been laid out from various aspects of chip, packaging, and application and have developed relevant The technology will be gradually put into production in 2018, and will start the development of small pitches in the direction of MiniLEDs.