The potential for significant economic and social benefits in the LED display industry has driven countries worldwide to develop strategic plans and implement supportive policies, promoting rapid growth in the market. However, the government procurement segment of the LED display market showed a rather sluggish performance in the first quarter of this year. How will the LED display market evolve moving forward?
After experiencing strong momentum in the second half of last year, the government procurement market for LED displays in the first quarter of 2023 was notably subdued, with lower spending compared to the same period last year. According to data published by "China Financial News," "China Government Procurement News," and the China Government Procurement Network, the total value of LED display procurement projects in the first quarter reached 40.5 million yuan, a drop of 23% from 52.59 million yuan in the first quarter of 2022.
Breaking it down, January saw procurement worth 11.6 million yuan, down from 21.24 million yuan in January 2022—a nearly 50% decrease. February’s procurement was slightly higher at 13.02 million yuan, close to the 12.85 million yuan recorded in February 2022. March brought in 15.88 million yuan, still below the 18.5 million yuan from the same month last year.
Industry experts believe that while the first quarter's procurement activity did not match the previous year's high, it still reflects seasonal fluctuations rather than a decline in demand. The market remains on an upward trajectory, especially as energy-saving and emission-reduction policies continue to drive demand. With the advancement of the 12th Five-Year Plan, the LED display procurement market is expected to see a major surge in the near future.
Despite the slower pace, the first quarter still showcased promising opportunities. Nearly 60 public bidding projects were launched, with the top ten winning bids exceeding one million yuan each. Notably, the Fujian Xiapu Grand Theater stage LED screen project and the Fujian Jinfeng Tendering Agency Co., Ltd. procurement project ranked first and second, with amounts of 7.4 million and 6.17 million yuan respectively.
Sports venues, performance groups, schools, and hospitals remain the primary buyers of LED displays. In the first quarter, sports and performance venues accounted for 28% of total procurement, amounting to 11.49 million yuan, while schools contributed 22%, totaling 8.88 million yuan. Hospitals also had multiple projects, though the individual bid amounts were generally smaller.
Full-color displays dominated procurement, particularly for outdoor applications. Excluding projects without clear specifications, full-color display purchases reached 6.57 million yuan in the first quarter. Two-color and monochrome displays remained minor segments.
Fujian Province led the country in LED display procurement, with a total of 17.04 million yuan—42.1% higher than other regions. This was largely due to two large projects valued at 7.4 million and 6.17 million yuan, making them the top two procurement projects of the quarter.
Other provinces such as Beijing, Zhejiang, Hubei, Jiangsu, and Shandong also performed well, with procurement values of 3.57 million, 3.5 million, 1.86 million, 1.83 million, and 1.69 million yuan respectively.
Looking ahead, intelligent and monitoring features are expected to become key trends in the LED display industry. While current demand may be nearing saturation, new display technologies and emerging markets offer fresh opportunities. However, competition is intensifying, and the industry is likely to undergo further consolidation.
Currently, the domestic LED display industry is still in the early stages of product-based competition, with price, quality, delivery time, and after-sales service being the main factors. Price has become the dominant competitive factor, with LED display prices dropping by 15–20% year-on-year in 2022. This trend is driven by larger manufacturers trying to eliminate smaller competitors through price wars, which has caused confusion in the industry.
As the LED industry moves into a consolidation phase, many small and medium-sized enterprises are expected to be phased out. Meanwhile, companies with strong technical and financial backing are poised to grow rapidly through capital market support and innovation.
In the next few years, the domestic LED display market is expected to continue growing, primarily through replacement of traditional signage and expansion into high-end markets like HD, 3D, smart, and traffic-related displays. With proper regulation and increased R&D investment, manufacturers can strengthen their core competencies and secure a strong position in the competitive landscape.
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