The Chinese commercial display industry experienced a tumultuous 2024, influenced by a combination of economic downturns and increased efforts to expand overseas. As the major global economies and international interest rates begin to return to a more accommodative cycle, the commercial display industry will face more cyclical, technological, and geopolitical uncertainties in 2025.
The increasing variables in 2025 will test the industry’s ability to continue operating, drive domestic demand, and explore structural opportunities on the supply side. These three aspects will form the major trends for market transformation and ongoing international development in the commercial display sector, creating new growth opportunities for the industry.
1. MiP LED Sales Surge
In 2023, global sales of MiP LED display products were relatively modest. However, by 2024, this technology’s sales in China’s small-pitch LED market had approached 4% of the entire market, with the sales area share exceeding 1%. The market is progressing rapidly, but the overall volume remains limited.
Looking from another perspective, the capacity of MiP LED saw a significant increase by the end of 2024. Besides an increase in supply, the more significant change will be a reduction in costs. When competing with COB, MiP products, such as the 0202 model, have already been used in COB-like products. Furthermore, in many mainstream MiP applications, the cost difference with COB is not substantial. As the cost of MiP continues to decline significantly due to increased scale, the cost gap between MiP and COB will continue to narrow, potentially even reversing in some product lines.
Historically, COB products saw explosive growth at the end of 2022, driven by large-scale production and cost halving. MiP LED products may replicate this process at a faster pace, further expanding their market and doubling their growth.
2. AM LED Marks the Beginning of Large-Scale Supply
As the industry shifts from PM drive to AM drive, will AM TFT-Micro LED direct view displays experience a qualitative transformation by 2025? From the current supply-side preparations, the probability is extremely high.
On one hand, the semiconductor panel industry is already at a critical juncture for driving AM TFT-Micro LED direct view displays. On the other hand, another technological route has begun to emerge in 2024: the integration of Micro IC in MiP solutions. The MiP industry believes that traditional MiP and AMiP will complement each other for a period of time. Additionally, AMiP is one of the main areas of focus for glass-based packaging. Through glass vias, AMiP offers higher integration, more stable and clear images, and better energy efficiency, which supports the lightweight development of LED direct-view products. The industry believes that as the size of Micro LED chips decreases, the advantages and necessity of AM drive will only grow.
3. Micro LED Market Share Expected to Double
Given the projected large-scale growth of MiP sales and AM LED growth, the surge in Micro LED applications comes as no surprise. By 2025, it is expected that Micro LED‘s market share will at least double, ushering in an era where small-pitch LED is driven by Micro LED innovations. Key drivers for Micro LED‘s expansion include new technologies and products, growing market demands, and significant cost reductions.
When it comes to ultra-fine pitch, medium, and small-sized LED direct-view displays, as well as LED silicon-based micro displays, only Micro LED is capable of meeting the demand, making its growth an inevitable trajectory.
4. Continued Price Reductions to Lead the Commercial Display Market
Apart from the demand-side upgrades driven by the digitalization of society, cost reductions will remain the primary factor on the supply side for expanding the commercial display market and driving product application growth.
For LED direct-view displays, although the sharp price cuts for COB have plateaued, the rising volumes of MiP will inevitably lead to cost reductions, driving structural upgrades in the competitive landscape of the LED direct-view industry.
In the flat-panel commercial display segment, price reductions for LCD panels have already slowed. While future cost reductions may not be as dramatic, the market still needs more solutions to “optimize supply chain costs.” Leading industry brands are also looking to consolidate their market share through scaled procurement and supply cost advantages. Even without major changes in upstream costs, flat-panel commercial displays may still experience “price squeezing” to maintain competitiveness in 2025.
In other display categories, price reductions will likely continue. For example, electronic paper commercial displays face cost barriers, and industry transformation will rely heavily on increased production capacity. In the commercial projection sector, laser light source technology updates continue to push prices down, with “brighter and cheaper” being one of the main competitive points.
5. Outdoor LED Direct-View Market Recovery
In 2024, the outdoor LED direct-view market felt the effects of the global economic downturn. The main obstacles faced by the outdoor LED commercial display market stem from two factors: firstly, the global economic downturn, with the tightening of monetary policies such as the US dollar interest rate hikes affecting global economies. Secondly, e-commerce consumption is replacing traditional offline demand, particularly in Europe and North America, where outdoor LED direct-view demand has been significantly impacted by the growth of online shopping.
However, with the expected slow decline in global e-commerce growth in 2025, offline consumer vitality is likely to recover. This should lead to a gradual recovery in the outdoor LED direct-view market, even if it doesn’t experience a full-fledged revival.
6. AI-powered Commercial Displays Breakthrough
One of the core drivers of the commercial display market is the construction of a “digital-intelligent” society. As digitalization evolves into intelligence, commercial displays will inevitably generate new application value and revolutionize existing functions.
Some companies in the industry have suggested that, in the future, part of the display screens will become “smart bodies” or “screen-shaped robots.” According to Mei Zhimin, Vice President of Chau Ming Group, screen-shaped robots represent a new phase in the exploration and enhancement of AI+display technology, infusing new vitality into the entire LED display industry. As AI technology continues to advance and its application scenarios expand, screen-shaped robots will play an increasingly important role, acting as bridges between the virtual and real worlds.
Such AI+ applications can combine with LED displays, as well as holographic, transparent, and LCD displays. In this context, AI is the core functionality, while displays serve as the medium. This combination will enhance traditional display functions and upgrade existing screen value, propelling the commercial display market to a new level of digital-intelligent sophistication and creating entirely new user experiences.
7. Increasing Share of Overseas Markets
Winning overseas markets is a key factor for growth in 2024 for commercial display companies. Going global is the result of competition, innovation, and the global societal trend toward digital intelligence. Chinese commercial display companies will not slow down their efforts to expand overseas in 2025, and their international growth will not be hindered by a domestic market rebound. The ongoing push to go global is a mission for the times.
Only companies with a longer domestic industrial chain and real innovation capabilities will be able to succeed in overseas markets. The simple “trade” model for expanding overseas is becoming obsolete. In 2025, Chinese commercial display companies will continue to advance their overseas presence, with a higher proportion of self-branded, self-developed solutions and innovative technologies, as the industry shifts into a “high-value-added” phase.
8. ICT and TV Brands to Increase Market Share in Commercial Displays
In recent years, the market share of ICT and TV manufacturers in the commercial display market has been on the rise. This trend is expected to continue in 2025. As the construction of a “digital-intelligent” society progresses, the importance of commercial displays will become even more pronounced, and the market for standardized products and solutions will continue to expand.
Leading companies such as BOE, Hisense, and Konka, who have entered the LED upstream supply chain through acquisitions, are positioning themselves to have long-term advantages in core technologies and supply chains within the commercial display industry. Whether in the domestic or international markets, the competition in the commercial display sector will increasingly focus on “scale.” Companies with longer industrial chains and core innovation capabilities will lead the industry toward high-quality development, reinforcing the trend of stronger companies becoming stronger.
9. New Iteration Cycle for LED Integrated Machines
In 2024, the LED integrated machine market was somewhat sluggish. However, by 2025, it is expected that COB and MiP LED technologies will continue to lower prices, Micro LED products will penetrate further, and the AM LED market will continue to expand. These changes will significantly impact the development of LED integrated machines.
Industry players believe that LED integrated machines could rival OLED displays in terms of unit display area. In the 100-200 inch display market, LED integrated machines face little competition and occupy a unique niche. With more integration technologies, such as AM LED, MiP, and Micro LED, these integrated machines will continue to evolve. In the future, integrated LED solutions will support the digital-intelligent future of display systems and bring new possibilities for customized services in various industries.
Summary
Overall, 2025 will not be a “perfect moment”, but it is the starting point of a new cycle of commercial display. We expect that the commercial display industry will create a new industry growth myth with dual innovations on the supply side and demand side, and promote the great strides of human social civilization on the road of digitalization.
Disclaimer: The views and opinions expressed in this article are those of the original authors and do not necessarily reflect the official policy or position of MiniMicroLED Insights . While we strive to ensure the accuracy and reliability of the information provided, the content on this website may include translations, re-edited versions of second-hand information, or information derived from unverifiable sources. MiniMicroLED Insights makes no representations or warranties, express or implied, regarding the completeness, accuracy, or timeliness of such content. The information in this article is for informational purposes only and should not be construed as professional advice. Any reliance you place on such information is strictly at your own risk. To the fullest extent permitted by law, MiniMicroLED Insights disclaims all liability for any direct, indirect, incidental, consequential, or punitive damages arising out of your use of, or reliance on, the information contained in this article.
Copyright Notice: This article may include translated and re-edited content derived from various online sources, including websites and social media platforms. While we strive to credit the original authors and sources to the best of our ability, we may not always be able to verify the original source of the content. All rights to the original content remain with the original author or source publication. Where applicable, this content is reproduced for educational and informational purposes under the fair use doctrine. If you believe any content on this site infringes upon your intellectual property rights, or if you are the copyright owner and believe we have not credited you correctly, please contact us at minimicroled.business@gmail.com. We will investigate and take corrective action, including removing or properly crediting the content if necessary.
Content sourced and adapted by MiniMicroLED Insights (Doris).