LED video display shipments are expected to grow 27.5% this year, with 4.9% revenue growth. IHS, which made the forecast, says that the higher shipments are due to a ‘dramatic’ 26% YoY fall in prices across all pixel pitch categories. Despite this, revenues will increase thanks to a gradual shift towards finer, more expensive pixel pitches.
IHS expects revenue momentum to accelerate in 2017, as prices continue to fall and shipments move from high- to low-pixel pitch categories. Small-pitch LED displays will begin to replace LCD and other large format display applications, leading to rising revenue.
Retail, outdoor sports and public spaces are the leading LED display categories: almost 40% of all LED displays belong in the outdoor-retail segment, thanks to the high brightness and durability of the technology. This share is expected to fall to 35% by 2020, though, as LED installations move indoors.
Pixel pitch categories will continue to shrink, says IHS, with 2-4.99mm being installed in indoor and outdoor applications, and 5-9.99mm for outdoor uses. Indoor and outdoor LED are expected to achieve 98% and 63% YoY growth, respectively.
Certain markets are still untapped for LED signage, including education, hospitality and healthcare. This is because their lower budgets limit them from investing in LED, and they remain with LCD or front-projection solutions.
LED makers are differentiating themselves by focusing on various verticals. Aoto and Daktronics, for example, have established themselves as outdoor sports LED display providers, while SiliconCore is known for high-resolution video walls.
