The mainstream display technologies in the market include LCD, OLED and Mini/Micro LED, the company’s PCB products are mainly used in Mini LED and LCD, the development of downstream traditional LCD and Mini LED market will drive the growth of the company’s product stock and incremental market.
A, the traditional LCD as the mainstream market display technology, will drive the company’s product stock growth
LCD is liquid crystal display, is a kind of flat panel display technology, based on the special physical and chemical and optoelectronic characteristics of liquid crystal materials, is currently the most mature and widely used display device in flat panel display technology, mainly used in TVs, monitors, laptops, tablet computers, smart phones and other fields.
TFT-LCD, that is, thin-film transistor liquid crystal display, belongs to one of the LCD display technology, is the current mainstream technology, each of its liquid crystal pixels are driven by the thin-film transistor integrated behind the pixels, so that it can achieve high speed, high brightness, high contrast display screen information, with light weight, flat power, low power consumption, no radiation, excellent display quality and other characteristics. According to DSCC data, the global TFT-LCD market size is as follows:
Source: DSCC
B. As a new generation of display technology, Mini LED will drive the incremental growth of the company’s products
Mini LED refers to an LED chip with a size of 100μm, and the size is between small-pitch LED and Micro LED, which is the result of further refinement of small-pitch LED. Compared with traditional display technology, Mini LED display technology has a smaller lamp bead size (100-200μm), a more delicate display effect and higher brightness.
Since 2019, Mini LED products have been intensively released, Apple, TCL, Hisense, Asus, Innolux, AUO, BOE and other manufacturers have launched Mini LED backlight or similar technology of TV, display, VR and vehicle display and other terminal products, Mini LED began to usher in large-scale application, the demand for special PCB will also usher in explosive growth.
Mini LED backlight module can help LCD upgrade, realize ultra-thin, multi-zone local dimming backlight unit, so that the external dimension and contrast performance are close to or better than OLED, so that LCD in the high-end market can compete with OLED on the same stage, LCD partition dimming backlight technology has matured, the cost is also decreasing, the future is expected to usher in a scale increase. Mini LED commercial display is an upgrade of small-pitch LED commercial display, with the 2020 “Mini LED Commercial Display General Technical Specification”, Mini LED commercial display is expected to usher in orderly and rapid development, and gradually in large-size TVs, cinemas and other scenarios.
According to Arizton data, the global mini LED market size in 2018 is only about 10 million US dollars, as the upstream and downstream continue to promote the industrial application of Mini LED, Mini LED downstream demand ushered in exponential growth, it is expected that the global market size will expand to 2.32 billion US dollars in 2024, with a compound annual growth rate of 147.88%; The Advanced LED Research Institute (GGII) pointed out that the domestic mini LED market will grow to $2.2 billion by 2020, with a compound annual growth rate of 175%, faster than the global average.
Source: Arizton
(3) Consumer electronics
Consumer electronics include cell phones, computers, smart homes, wearable devices, intelligent mobile terminals and other sub-sectors. In the field of consumer electronics, the company’s products are mainly used in cell phone fast charging source, smart home, intelligent education, computer periphery, drones, etc. Consumer electronics products have a wide coverage, rapid changes in downstream demand, short product iteration cycle, new categories continue to emerge and other characteristics, each new consumer hot spots will lead a round of consumer electronics iteration upgrade, driving the growth of demand for printed circuit boards.
The rapid development of the global consumer electronics industry, smart phones, tablet PCs, wearable devices, AR (augmented reality), VR (virtual reality) and other new products continue to emerge, along with the global consumer upgrade, the consumer electronics industry will continue to have a broad market outlook. According to Prismark statistics, the global consumer electronics output value reached US$298 billion in 2019, up 2.76% from 2018; the global consumer electronics output value is expected to reach US$357 billion in 2024, with a CAGR of about 3.7% from 2019 to 2024.
Source: Prismark
(4) Communication equipment
Communication equipment mainly refers to the communication infrastructure used for wired or wireless network transmission, including communication base stations, routers, switches, radar, backbone transmission equipment, etc.. At present, the demand for PCBs for communication equipment is mainly multilayer boards. With the advent of the 5G era, the demand for high-frequency and high-speed boards that facilitate high-speed signal transmission will rise significantly. According to Prismark’s forecast, the global communication equipment market will reach $710 billion by 2024.
Data source: Prismark
