Global sales growth in LED fell to 9.8% year on year in the third quarter of 2022, with the fine pixel pitch sector hit hardest of all, according to research firm Omdia.

LED display sales growth slows due to rising inflation

Rising inflation has slowed the growth in sales of dvLED displays across the world, according to tech research and advisory firm Omdia.

Omdia says there was sales growth of 9.8% year on year in the third quarter of 2022, as measured by square metre units.

“It’s not a very high market growth rate, considering the recovery of the market in the second quarter of 2022 and the characteristics of the third quarter of 2022, which can be seen as a peak season,” said Tay Taehoon Kim, research and analysis associate director for digital signage (including LED video display) at Omdia.

Omdia claims a rise in sell-out prices caused by inflation has led to delays in the installation of new direct-view LED displays, and made it more difficult to sell fine-pixel-pitch products, which are relatively expensive.

Fine-pixel-pitch products, which previously led the growth of the entire direct-view LED displays market, slowed down with a 7.3% quarter-on-quarter growth rate in the third quarter of 2022.

Omdia said lower-than-expected growth in fine pixel pitch products was connected to China’s Zero Covid policy. In China, sales of dvLED displays dropped 6.6% year on year in the third quarter of 2022. And it was worse in fine pixel pitch LED, where sales dropped 13.5%.

Absen was the leading manufacturer in an Omdia ranking of manufacturers of fine pixel pitch LED by sales in the third quarter of 2022. Sony, made progress, taking fifth place while Unilumin fell to sixth place. Sony grew sales in Japan with a standard line-up that lowered price significantly.

Reference : AVinteractive