Market Insight

China LED video display market growth driven by focus on ‘Indoor’ applications from government initiatives

July 30, 2019  | Subscribers Only

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In May of this year, three effective Shanghai local government organizations, the Shanghai Administration for Industry and Commerce, the Shanghai Urban Planning Administration, and the Office of the Shanghai Municipal Administration Committee, jointly issued a notice for "Planning and Management Method for Outdoor Advertising Settings in Shanghai".

This notice pointed out more than 500 LED outdoor large screen displays as the object of complaints for light pollution, then clearly commented that outdoor advertising facilities should be coordinating with the surrounding environment, and outdoor displays for advertising should not directly affect traffic, municipal public facilities, and people’s daily life.

In fact, Western Europe began to limit the approval of outdoor advertising since 2018, then the proportion of outdoor LED video displays decreased rapidly. In Q1 2018, outdoor LED video share comprised 64 percent of the market, and dipped to 47 percent in Q4 2018, the first record less than 50 percent for Western Europe market. On the other hand, the proportion of indoor applications increased with the rapid growth of fine pixel pitch products. Also, with the tendency of application transition, IHS Markit forecasted from Q2 2019 onward with higher concentration of indoor application for Western Europe market.

Therefore, IHS Markit believes the proportion of LED video display sales in Chinese market also will gradually shift from outdoor to indoor applications. Even though there are no legal regulation standards yet, more government organizations and public welfare institutions in China are paying greater attention to ‘light pollution’ and its effects on surrounding areas.

According to IHS Markit, based on the latest iteration of the LED Video Displays Market Tracker, sales of Indoor applications will likely account for more than 50 percent of unit sales from 2020 onward. However, there’s high possibility to increase the proportion of Indoor applications for the short-term forecast period for upcoming reports.

Also, technical specifications for outdoor LED video displays are also expected to change in the near term. For example, safety, energy saving, brightness (eye protection), etc. will become basic requirements for outdoor products to be installed in the market.

China Western Europe
Research by Market
Large Displays
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