LED Industry: Transformation and Breakthroughs Amid Technological Bottlenecks and Opportunities

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As the economy enters a period of adjustment and the Fourth Industrial Revolution gradually emerges, the LED display industry stands at a crossroads of technological iteration and model reconstruction, facing both the constraints of traditional approaches and the potential for breakthroughs.

The current economic adjustment is squeezing out the bubble of past rapid growth. Overcapacity and overdrawn demand have become common problems, but this has also allowed the industry to consolidate its technological, marketing, and service capabilities. As the Third Industrial Revolution draws to a close and the Fourth begins, technological innovation is the key to breakthroughs. The national "internal circulation" initiative is both absorbing traditional overcapacity and paving the way for the evolution of new technologies such as new energy and AI. This has a direct impact on the LED industry: traditional business models across to-go, to-business, and to-consumer (B2G), are being reshaped, and project processes and capabilities requirements are shifting. For practitioners, clinging to old thinking puts pressure on them; embracing new logic is the only way to seize the dividends of this era.

Technical Dilemma: The Stagnation of Packaging Technology Currently, the mainstays of LED display technology remain SMD and COB packaging. While the two differ in product form and process, they are comparable in terms of delivery process, service costs, and user experience. Even COB, considered an upgrade path, has yet to reduce delivery costs or optimize service, making it a poor entry point into new markets. This indicates that industry technology is still in its infancy, with existing technologies merely iterating within traditional frameworks and failing to achieve the core breakthroughs of "next-generation display media." To gain a competitive advantage in both the B2B and B2C markets, existing packaging technologies, raw materials, and product solutions urgently need to be overhauled.

For a long time, LED manufacturers have focused heavily on displays, with technical parameters, product performance, and display value becoming the core of their business. This stems from the current high value share of displays. However, as the market matures, this logic is becoming ineffective. Over the next decade, the value and share of display screens will continue to decline, as user demands shift from "visual effects" to "business-focused, convenient, and efficient user experiences." Non-display technology iteration (such as intelligent interaction), service upgrades (such as scenario-based solutions), and user experience optimization will become key to competitiveness. Trading companies can unlock greater value by deeply cultivating these areas. Breakthrough Direction: From "Selling Screens" to "Creating an Ecosystem"

The path to breakthrough is clear: move beyond the single-screen mindset and build a comprehensive ecosystem encompassing "technology + scenarios + services." On the technical side, this involves driving breakthroughs in packaging technology while focusing on integrating cross-disciplinary technologies like AI and intelligent interaction with LED displays. On the business side, this involves shifting from "delivering displays" to "delivering solutions," integrating screens as core components into customer business processes. On the capability side, this involves enhancing the value of non-screen services, such as customized scenario design and full-lifecycle operations and maintenance. The window for the Fourth Industrial Revolution has opened, and the deepening of domestic circulation is driving new demand. The future of the LED display industry lies not "inside the screen," but "outside the screen"—the subtleties that influence user experience and business value hold the key to breakthrough and rebirth.