The competition in the consumer electronics market, particularly in television, has been fierce. As production shifts and technology evolves, both the technology and market landscape for TVs are undergoing significant changes. For TV brands, navigating these changes while continuously upgrading products has become increasingly complex.
In the competitive landscape of end-user brands, a supplier that can effectively reduce costs and increase efficiency becomes crucial in lowering product prices and expanding market reach. This article uses BMTC as an example to analyze the importance of suppliers to Terminal manufacturers.
Battle Intensifies: Market and Technological Shifts in the TV Industry
Overall, the global TV market has been on a downward trend since peaking at 217 million units in 2020. According to the “2023 Mini LED Backlight Research White Paper,” global TV shipments declined from 2020 to 2022, largely due to the pandemic. In 2023, even as the pandemic wanes, the market recovery has been weaker than expected, with global TV shipments projected at around 200 million units, slightly lower than in 2022.
Despite the sluggish market, significant changes are brewing in the television sector.
Market Dynamics: Traditionally dominated by Japanese and Korean brands, the television market has seen the growing importance of Chinese companies in the display industry chain. Leading Chinese TV brands have been aggressively expanding their market presence, challenging the dominance of foreign brands and emerging as a new force in the market.
Technological Advances: The current TV market primarily revolves around three technological routes: LCD, Mini LED backlight, and OLED. Among these, Mini LED backlight TVs have gained a competitive edge due to their high cost-performance ratio. This has subtly shifted their positioning: they are increasingly penetrating the mid-to-low-end market, replacing existing LCD units, while also competing with OLEDs in the high-end segment by offering superior value.
Data from market research institutions supports this shift.
In the battle between Mini LED backlights and OLEDs, several institutions predict that Mini LED TV shipments will surpass OLED by 2025. For Mini LED backlight TVs, Rerearch estimates that global shipments in 2023 will reach 4.8 million units, a 50% increase from 2022, with a penetration rate of 2.0%. This is expected to grow to 6.7 million units in 2024.
Overall, Mini LED TVs show strong potential, serving as a vital boost in the otherwise stagnant TV market. So how can brand manufacturers secure long-term growth in this promising market?
The Critical Importance of Mini LED Backlight Supply Chain
As an end-consumer product, Mini LED backlight TVs have garnered increasing attention from brands like Samsung, TCL, Xiaomi, Konka, and Hisense, who are leaning towards Mini LED backlight technology to develop differentiated product lines.
In the ongoing market and technology battle, the cost-effectiveness of Mini LED backlight technology remains a key advantage. As such, end-user brands are becoming more cautious in selecting their supply chain partners. A supplier’s ability to manage both upstream and downstream resources significantly impacts its ability to enhance production efficiency and reduce costs. A supplier that can effectively lower costs and improve efficiency becomes instrumental in helping end-user brands reduce product prices and expand their market share.
BMTC as a Case Study: Established in 2011, BMTC has built its competitiveness through continuous capacity expansion and technological innovation, making it one of the most competitive packaging companies in the industry.
BMTC currently operates two major production bases in Nanchang and Shenzhen, with production capacity continuing to expand. In 2022, BMTC had 3,500 production lines with a monthly capacity of 36,036KK. This expanded further in 2023 to 40,950KK, supported by 50 SMT lines and 5 Mini COB lines.
On the technical front, BMTC specializes in the packaging of LED backlights, LED lighting, and traditional SMD display LEDs. Its Mini LED backlight products cover various technologies, including Mini COB, Mini POB, MPOB, and Mini Lens, applicable in TVs, monitors, and automotive displays.
Notably, the “MPOB” and “Mini Lens” solutions are BMTC’s innovations aimed at further reducing costs and increasing efficiency for Mini LED chips. These solutions are reported to offer lower costs while maintaining the same light efficiency.
In the TV sector, BMTC employs a combination of DOB, white light, Mini Lens, and irregular PCB to lower TV prices. In market competition, BMTC uses COB technology products to create high-end product lines that compete with OLEDs, while POB technology products enhance cost-effectiveness, allowing for downward market penetration and competition against LCD products.
Furthermore, BMTC benefits from its association with AMTC, a key player in the LED industry. As an integral part of AMTC’s LED industrial chain, BMTC enjoys the advantages of AMTC’s vertically integrated strategic layout, which includes insight into market trends, technological shifts, and resource allocation.
AMTC, originally known for its TV ODM business, entered the LED sector in 2011 with the founding of BMTC, focused on LED packaging. AMTC has since embraced vertical integration, extending its reach into LED chip manufacturing and covering downstream application businesses. AMTC now boasts a complete LED industrial chain.
The synergy within the industrial chain allows BMTC to predict market trends, quickly align production with market demands, and offer flexible production line and equipment arrangements. BMTC’s technological capabilities enable it to provide competitive solutions to end-user clients, significantly enhancing service quality. BMTC currently supplies leading domestic and international TV brands such as Xiaomi, TCL, Konka, Skyworth, Philips, and Huawei, with products ranging from 500-zone to 2,000-zone backlights.
Conclusion
Unlike most LED companies that rely on collaboration with upstream and downstream partners to secure industrial chain resources, AMTC’s internal vertical integration gives it an edge in lowering communication, production, and R&D costs, highlighting its collaborative advantages.
In summary, technological upgrades and iterations rely heavily on industrial chain support. As Mini LED TVs continue to improve their market penetration through cost-effective solutions, packaging companies like BMTC play a crucial role in reducing costs and increasing efficiency. With the growing penetration of Mini LED TVs and the vertical integration advantages held by BMTC, which include substantial technical expertise and customer resources, BMTC is poised for new growth opportunities.
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