Opportunities and challenges of the global LED market in 2022

In 2021, the market demand for LED displays was grown significantly, with the global scale reaching US$6.8 billion, 

a year-on-year increase of over 23%. It is worth noting that with the expansion of domestic demand, nearly 40% 

of the world's display screens are in China.

Channel marketing has further tapped the market demand, making it the main sales method to replace engineering marketing.

In the past two years, the sales of channel LED displays have increased significantly. After the establishment of the channel model,

the power of the brand has become prominent. Leading companies such as Leyard and Unilumin can take advantage of their brand 

to expand their market share. In this context, the industry concentration has further improved, and the market share of the top ten 

manufacturers will increase to 71% in 2021, and it is expected to continue to grow this year.

Driven by terminal demand, the demand for upstream products of LED displays has increased year-on-year

In the chip field, the market size of LED chips will jump to US$3.6 billion in 2021, and the rare 45% growth rate is mainly due to the 

growth of lighting, automotive LEDs, displays and other fields. Among them, the LED display chip market scale is close to 700 million 

US dollars, an increase of nearly 60% year-on-year.

Although the shipments of Mini LED display chips are lower than expected, their growth is good. According to the statistics of TrendForce, 

the total shipments of 4-inch Mini LED display epitaxial wafers will increase by nearly 50% in 2021 based on the chip side. MiniLED chips 

are not only used in the market below P1.0, but also in the high-end market of P1.2 and even P1.5.

The concentration of the LED display chip industry continues to rise, and the market share of the top five manufacturers in 2021 will reach 

over 90%. With the rapid development of the display chip market in recent years, the number of manufacturers entering this field has 

gradually increased, and the market competition has intensified.

At present, there are more and more manufacturers in the direct display field, such as Nationstar, Kaixun, Zhongjing, Zhaochi and other new manufacturers.

In the past, Sanan, Huacan, Epistar, Ganzhao and Silan Micro is the main manufacturer. The channel LED display chip market is even worse. 

Due to its relatively low specification requirements and low entry barriers, market competition is expected to gradually increase.

In the packaging field, in 2021, mainly driven by automotive LEDs, lighting and LED displays, the global LED packaging market will reach US$17.65 billion, a year-on-year increase of 15.4%.