With the continuous improvement of the national material life, the spiritual and civilized life has also been improved, and the entertainment consumption is showing a straight upward trend, mainly in the dance and film markets. With the continuous release of several countries. Commercial activities and sports events have gradually resumed, and the LED market has gradually warmed up. However, large screen display devices are necessary for movie theaters. In order to seize this huge blue ocean market, major LED display manufacturers began to layout small pitch LED displays, and constantly improved their products according to the requirements of cinemas for display. In 2021, the market demand for LED displays will grow significantly, reaching a global scale of 6.8 billion US dollars, with a year-on-year growth of more than 23%. It is worth noting that with the expansion of domestic demand, nearly 40% of the global display screens are in China. So, what is the LED cinema screen? What is the development space of LED screens in the cinema market in Malaysia?
The Development Space of Malaysian LED Screen in Cinema Market
For now, the traditional cinema market is still dominated by DLP projection. Since Samsung's high-definition LED display successfully entered the film market, many LED display manufacturers have begun to pay attention to the huge blue ocean market of the film market. Now, the technology of Mini LED, Micro LED and COB small pitch LED display developed by LED display manufacturers has been greatly improved. The major LED screen enterprises are no longer limited to the traditional LED indoor display and LED outdoor display, but have begun to seize various market segments, including the cinema market.
According to the data of the American Film Association, in 2018 alone, the number of global film screens reached 190000, an increase of 7%, mainly driven by the 13% growth in the Asia Pacific region. The number of Chinese screens exceeded 60000, up 18.3% year on year, ranking first in the world. In the future, the number of screens in the film market will continue to increase. It can be said that there is a lot of room for development in this subdivided field, and the major LED screen enterprises should deploy as soon as possible.
Assuming that the probability of replacing traditional film screens with small spacing LED displays is 10%, if the cost of each screen is 1 million yuan and the stock market of 60000 screens is available, the domestic market for replacing small spacing LED screen film screens can reach 6 billion yuan. This massive market is a big cake for the LED commercial display screen market. If any LED screen enterprise can seize this huge market share in advance, it will have the right to speak first. Samsung has already had some say when it successfully entered the film market, and domestic LED display manufacturers should not be left behind. After all, the domestic film market is a large stock market, which is a good breakthrough for the current domestic LED screen market, which is becoming saturated, low price competition, homogenization deadlock and Sino US trade war.
In order to seize this huge market share, some large LED screen enterprises have begun to implement horizontal and vertical cross-border integration, and continue to seize the film market through our company or subsidiaries. Even in the first half of this year, they have basically completed the development and internal testing of the overall solution of LED cinema. Although the small pitch LED display developed by domestic LED display manufacturers has met the HD display requirements of cinemas, it still needs DCI certification and market promotion, which requires a long process. If only domestic LED screen enterprises develop and layout, including solutions, customer needs and understanding of products, this process may take five years. In the five years, it is possible that the domestic film market has already been occupied by Samsung or other display enterprises.
Of course, it does not mean that domestic LED display manufacturers have no hope. At present, the four in one Mini LED, Micro and COB technologies developed by domestic LED display manufacturers are still at the leading level in the world. They can also be equipped with independently developed 4k and 8k ultra-high definition video control systems, which can provide more detailed and realistic large area display images. At the same time, LED screen enterprises continuously improve HDR technology on the basis of small spacing LED displays, and promote the application of LED screens in the cinema market.
At present, the two major obstacles for the LED screen industry in the film market are DCI certification and the cost and quality of high-definition LED display exceeding the existing screen technology. In fact, the product quality, technology and display performance of small pitch LED display screens produced by domestic LED screen enterprises have met the needs of the cinema market. However, in terms of certification, Chinese enterprises can hardly meet the requirements. In order to solve this problem, the leading enterprises have adopted the solution of strategic cooperation with the enterprises of film screen standard setters, so as to develop LED screen solutions that meet the DCI certification standards and carry out joint promotion. If this measure can be realized, as long as one of the screens can pass the certification, more enterprises will follow suit, so as to seize the huge blue ocean market of cinemas.
To this end, domestic LED screen enterprises have specially established laboratories, which are mainly used to establish the technical standard of "China's LED screen film broadcast system", pass international certification, obtain the projection license of domestic and foreign digital film sources, and promote the commercialization of "China's LED screen film broadcast system". Of course, we also need to solve the problem of cost and quality. There is still room for the price of LED screens to decline. As the cost of chips declines, the price of screens will also decline, and the price of movie screens will naturally decline.
In addition, compared with traditional DLP digital movie projection equipment, LED screen has the advantages of higher HDR image technology, high contrast, wide color gamut, high color accuracy, high brightness and high frame rate. The LED film screens installed by Samsung in Shanghai Wanda Cinema City in the past attracted a lot of attention in the film market by virtue of their advantages such as high brightness, high HDR technology and high contrast. Since then, a surge of LED screens has entered the film market.
In addition, China has also proposed to deepen the reform of cinema line system, especially to accelerate the construction of township cinemas. For villages and towns with strong strength, the number of cinemas and projection halls built shall be more than 2, with more than 2K digital projection equipment installed and used, and shall be added to the city cinema line.
Opportunities and challenges coexist for LED display in the future. The excavation and development of emerging fields cannot be separated from the efforts of major manufacturers and the support of the government. In the LED display industry with a high degree of industrial concentration, the profit growth point of each enterprise lies in the continuous innovation of technology and the layout in new application fields.