Will the Increasing Price of LED Transparent Screen Products Affect the Outdoor Advertising Industry?

Affected by the COVID-19, the supply of LED chips has been tight since the beginning of the year. However, in the context of strong demand from downstream LED companies, LED driver chips have risen in price, which has also driven a wave of transparent LED display manufacturers to announce price increases. Especially since late June, many well-known LED screen manufacturers have announced price adjustments.

Ⅰ. Rising raw material prices cause the LED screen manufacturer to adjust prices

From the price increase notices of many LED screen manufacturers, it is found that most of the reasons for the price increase of manufacturers emphasize the rising costs of upstream companies' raw materials such as semiconductor chips, PCBs, and lamp beads, resulting in a significant increase in the supply cost of transparent LED display products. In consideration of the company's long-term development, LED products have to increase their prices. It is certain that this wave of price increases in the LED industry is entirely caused by the imbalance of market supply and demand.

It is undeniable that in the later stage of the COVID-19, the global economy is gradually recovering and the market is picking up, and the demand for transparent LED displays will increase substantially. Similarly, benefiting from technological upgrades such as 5G and 4K/8K ultra-high-definition displays, the LED display market will usher in explosive growth. Many LED screen manufacturers have seen this trend and are not worried that price increases will have too much impact on the outdoor advertising industry.

Ⅱ. The price increase of transparent LED display will not affect the advertising industry

The main reason for the price increase of transparent LED display is the shortage of raw materials. Affected by the COVID-19 in 2021, the production of raw materials for LED products is insufficient, resulting in a shortage of supply, and price increases have become an inevitable trend. With the increase in vaccination rates in various countries and the gradual unblocking, the outdoor advertising market demand will gradually recover. It is estimated that the market output value in 2021 is expected to reach 7 billion US dollars. Therefore, the price increase of LED products will not affect the outdoor advertising industry.

Of course, the price of LED products has risen, and the corresponding major LED screen manufacturer must improve the product quality in order to benefit the healthy development of the industry. In this way, LED companies will go further and fly higher.

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