LED video display market growth is slowing, says EDG
The Full Color LED Video Display Industry of which has had steady growth is slowing and Industry Executives report below average earnings.
Since the introduction of LED as the light source of large format video displays the industry has enjoyed an average annual growth rate of 15-20%.
However, in 2005, with sales of almost $500 million, the industry showed signs of slowing in terms of total sales despite increases of 30% in the volume of square meters produced.
According to EDG Research’s recently released report the trend will continue due to very competitive pricing, lower component costs, a shift to manufacturing to Asia and competing technologies.
In this year’s annual survey of Industry Executives, over 50% indicated the profit potential was below average and were not optimistic on having the trend reversed. This is up 25% from the previous year’s survey.
Additionally, many of the top video displays companies of only a few years ago simply either do not exist today or have suffered unusually high financial losses.
Peter Pihos, of EDG is also “advising clients worldwide that the industry could slow to zero or negative growth should potentially lucrative markets such as for one example, Outdoor Billboards, be lost as Industry Sales Totals due to a shift as several main outdoor advertising companies are currently exploring the feasibility of building their Billboard displays and thus bypassing the current display manufacturers or use other technologies instead of LED.”
The newest report from EDG (specializing in consulting and research) is the 17th edition published and the company has reported on (LSVD) Large Scale Video Displays since it started to specialize on Large Area Display in 1982.
The report features dynamic forecasting and modeling for sales, units of indoor displays and outdoor displays base on changeable variables such as pricing and display size. The report is available for $2,500.
Peter L. Pihos Jr. EDG, 626 Greene Street, Cumberland, MD 21502, USA 301-697-0840 cell 301-777-9889 phone 301-777-7216 fax