Under the construction of smart cities, LED traffic displays will become a leading product.
In the context of smart city construction, LED traffic displays, thanks to policy support, technical compatibility and the growth of market demand, will become a leading product in the field of traffic displays. The detailed analysis is as follows:
I. Policy-driven and Expanded Infrastructure Investment Stimulate Market Demand
Smart City Construction Promotes Intelligent Upgrade of Traffic Displays: The country is vigorously promoting smart cities, and traffic displays, as an important part of it, are evolving towards intelligence and interactivity. From 2019 to 2023, the compound growth rate of LED display applications in the traffic display market is expected to remain stable, and the market size continues to expand as the process of smart cities progresses.
Increased Investment in Transportation Infrastructure: The country is increasing investment in transportation infrastructure in third- and fourth-tier cities, extending metro lines in first- and second-tier cities, and promoting the new infrastructure strategy. As a representative of intelligent transportation dispatch systems, the construction of rail transit accounts for two-thirds of the proposals at the two sessions, directly driving the increase in demand for small-format LED displays.
The Market Potential of Traffic Command Centers Is Huge: There are over 3000 county-level cities and above with traffic command centers in China. Currently, the market penetration rate is relatively low, and display enterprises can expand their market share by tapping into this essential scenario.
Figure: Application of LED Displays in Traffic Command Centers and Outdoor Scenarios
II. Technical Adaptability: Solving the Pain Points of Outdoor Traffic Display
High protection performance meets complex environment requirements: Traffic guidance screens and highway LED variable information boards need to operate 24 hours a day under conditions of poor visibility, thunderstorms, etc., with extremely high requirements for stability, lifespan, and protection. LED displays adopt the new GOB technology, achieving waterproof, moisture-proof, sun-proof, and anti-damage functions, fundamentally solving the problem of outdoor display equipment being prone to damage, and perfectly aligning with the requirements of the traffic scene.
High brightness and light control function ensure information release: LED displays have high brightness characteristics, and combined with light control technology, they can clearly display road and traffic information in strong light or low visibility environments, ensuring the normal release of information.
Long lifespan reduces maintenance costs: Outdoor traffic displays need to operate for a long time, and LED displays have a lifespan far exceeding traditional display equipment, reducing the pressure of frequent replacements and meeting the economic requirements of the traffic management department.
III. Growth in Road Construction Spurs a Massive Market Space
Increase in highway mileage expands application scenarios: According to data from the Ministry of Transport, at the end of 2019, the total mileage of national highways increased compared to the previous year, and the mileage of expressways also increased simultaneously. The increase in the number of roads directly drives the demand for traffic guidance screens and variable information boards, creating a huge market gap.
Steady growth in expressway construction: Expressways are the core application scenarios of LED displays, and the increase in mileage of expressways drives the deployment requirements of information boards and guidance screens along the route, providing stable order sources for screen enterprises.
Increase in outdoor display penetration rate: As the recognition of LED displays improves, their advantages of high brightness and high protection performance are recognized by more road managers, and the market penetration rate of traffic guidance screens and variable information boards gradually increases.
IV. Expansion of Multi-Domain Applications Enhance Product Competitiveness
Demand growth in command and dispatch centers: Under the impetus of smart city policies, the demand for large-sized, high-resolution LED displays in traffic command centers increases, used for real-time monitoring, data analysis, and emergency command. Screen enterprises can optimize product solutions for this scenario.
Expansion of rail transit scenarios: The new infrastructure strategy accelerates the construction of rail transit, and the proportion of small-pitch LED displays in the dispatch systems of subways and high-speed railways increases. Screen enterprises can seize the high-end market through technological upgrades.
Coverage of indoor and outdoor scenarios: LED displays are not only suitable for outdoor traffic display but also can meet the needs of indoor command centers, station information screens, and other scenarios, forming a diversified product matrix and enhancing market resilience.
V. New Infrastructure Strategy Provides Long-Term Development Momentum
Continuous release of policy dividends: New infrastructure integrates 5G, artificial intelligence, big data, etc. with traditional transportation infrastructure, providing technical support for the intelligent upgrade of LED displays, such as achieving dynamic information release and intelligent guidance through data interaction.
Funding investment guarantees project implementation: The country's increased support for new infrastructure has led to an increase in the budget for intelligent projects in the transportation sector, enabling screen enterprises to obtain long-term orders by participating in smart transportation projects, thereby consolidating their market position.
Enhanced synergy in the industrial chain: New infrastructure promotes technological progress in upstream technologies such as chips and packaging, reducing the production costs of LED displays, and promoting cooperation between screen enterprises and transportation solution providers to jointly develop customized products, enhancing the overall competitiveness of the industry.
Conclusion: The construction of smart cities has created threefold opportunities for LED traffic displays: policy, technology, and market. By meeting the high protection requirements of outdoor displays, aligning with the growth trend of road construction, and expanding multi-domain application scenarios, LED displays have become the core product in the field of traffic display, and their market advantages will be further consolidated under the promotion of the new infrastructure strategy.
