Market Insight

Strong Growth for LED Video Display Unit Shipments in 2015, as Revenue Stalls

August 03, 2016

Sanju Khatri Sanju Khatri Director, Consulting and Strategic Advisory Services

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  • Due to a dramatic 26 percent year-over-year decline in prices across all pixel-pitch categories in 2016, LED video-display shipments are expected to grow 27.5 percent with 4.9 percent revenue growth this year.
  • The outdoor-retail category held almost 40 percent of total market share, due to the high brightness and durability of LED video. However, as installation shifts to indoor applications, this market share is expected to drop to 35 percent by 2020.
  • LED video price erosion and the market’s increasing appetite for higher resolution displays will shift pixel-pitch categories lower, with 2-4.99mm being installed for both indoor and outdoor digital signage applications and 5-9.99mm catering purely to outdoor displays.
  • With indoor and outdoor retail and public spaces acting as the main driving force, these categories are expected to achieve year-over-year growth of 98 percent and 63 percent, respectively.
Outlook and Insight
LED video is experiencing a double-digit year-over-year price decline in all categories. However, rapid growth in LED video shipments and its gradual shift towards finer -- and more expensive -- pixel pitch categories are causing revenue to rise, which is offsetting the negative effects from the actual price decline.
Revenue momentum is expected to pick up in 2017, as prices continue to decline and shipments shift from high- to low-pixel pitch categories. As fine pixel pitch LED video technology begins to replace LCD and other large format display technologies, revenue will increase proportionally.
The top applications for LED video applications are retail, outdoor sports and public spaces. However, there is a growing trend in indoor applications, particularly in public spaces, retail, control room and corporate signage. For corporate signage, LED video is carving out a niche for installations at broadcast-TV studios.
Education signage, hospitality, healthcare and other untapped application markets remain elusive for LED video vendors, as their lower budgets limit them from investigating other technologies, namely LCD or front-projection installations.
Brands are differentiating themselves by focusing on various verticals. For example, Aoto and Daktronics have established themselves as outdoor-sports LED-display solutions providers, while Silicon Core is known for its expertise in high-resolution LED video walls. 

Daktronics Leyard Planar
Digital Signage
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