On April 17th, the most prestigious exhibition in the domestic professional display industry, IFC Exhibition, was held in Beijing. As the first IFC exhibition to be held in spring since the new crown epidemic in 2020, the gas phase change brought by IFC in 2024 exceeded expectations. Industry experts have said that a new round of high-quality development cycle is starting.
We are optimistic about the popularization of the application and start from higher quality
Some industry insiders said that 2023, as the first year after the new crown, everyone actually "has to be unwilling". That is, the gap between the expected and actual development in 2023 will bring certain growth pressure to the professional audiovisual industry. Within the industry, they were initially overly optimistic and underestimated the negative forces brought about by the epidemic and the international economic situation.
However, it is precisely because there is no "virtual up" in 2023, which will make the market "more precipitated" and lay a more solid foundation for future development. A typical example is that through the price drop, the market penetration depth of LED large screens continues to increase. High-end technology products, including COB, are becoming more and more popular. The trend of "more and better" industry applications is very clear.
It is worth mentioning that during April 2023, the professional display industry is entering a "moment of divergence in price movements". A small number of companies took the lead in raising prices, most companies insisted on internally digesting cost changes, and some companies actively responded to the general trend of application popularization and made every effort to control costs. Different choices have led to a differentiation in the performance development of industry enterprises: that is, a small number of price increases, the annual growth is not as expected, and because of the price increase in the front, the competitors will be lowered in the back, which increases additional communication and management costs. This year, the initiative to reduce prices has achieved an overall increase in market share and effective growth in profits.
Therefore, at the 2024 IFC exhibition, the first "summary experience" of industry professionals is that they must "keep up" on the big industry trends and not "make mistakes": this is the general trend of high-quality popularization. On the one hand, it is necessary to reduce costs through technological upgrading and industrial maturity to promote the growth of application sinking and volume, and on the other hand, it is to promote the universalization of more advanced technology applications - for example, the large bottom light valve of engineering projection on the IFC2024, COB and mip encapsulated LED screens continue to enhance the supply.
Seize the opportunity of the window of the times and closely follow the national policy
"Equipment upgrades" will be the most certain incremental market in 2024. Industry insiders have expressed great affirmation of the policy of "expanding equipment upgrade consumption" made by the state during the two sessions this year.
On the other hand, in the face of the development of Industry 4.0, smart digital technology, and new energy technology, the realization of digital energy-saving transformation of the traditional industrial chain is the task of the times to improve the high-quality productivity of the whole society.
"We will take the initiative to promote, policy and financing support, and high-quality equipment renewal process. This is excellent news for the audio-visual industry to achieve more penetration with the help of digital application concepts in related industries, and to become a 'digital control center' in more factories, workshops, ground, and buildings."
At present, the net asset value of the mainland's equipment stock is about 39.3 trillion yuan, of which the industrial equipment stock asset is about 28 trillion yuan. The Ministry of Industry and Information Technology proposed that by 2027, the penetration rate of digital R&D and design tools in industrial enterprises above designated size will reach more than 90%, and the numerical control rate of key processes will reach more than 75%, especially to promote the full coverage of digital transformation of industrial enterprises in large industrial provinces and cities and key parks.
On the IFC2024, professional audio-visual industry professionals have said that seizing the opportunity of equipment upgrading will be a significant incremental market in the next three years. Using advanced audio-visual to empower smart manufacturing and digital industry is also the inevitable mission of the professional audio-visual industry's own development.
Tightening the global economic cycle, the domestic and foreign markets will enter a "sweet" moment
Over the past two years, the global economy has been hovering at a trough of growth. Among them, in addition to the epidemic factors, more important is the "liquidity withdrawal effect" caused by the interest rate hike of international currencies dominated by the US dollar and the euro, which has greatly worsened the balance of the global broad money supply, especially for non-European and American countries.
At the IFC2024 exhibition, people in the audio-visual industry pointed out that as a consumer product with a weak rigid demand, the application of the professional audio-visual industry, even if the epidemic brings opportunities such as remote work, has also encountered the suppression of the willingness of enterprises to purchase and government procurement due to changes in the global economic situation. Especially after 2022, the opportunities and opportunities have basically disappeared, and the main thing that remains is "suppression".
On the bright side, the audio-visual industry is playing an increasingly important role in the digitalization and informatization industry, and the innovation of professional audio-visual products in mainland China has been significantly enhanced, and new supply, new applications and new values have effectively hedged the adverse impact of the macroeconomic situation. On the whole, the overseas market development of the domestic audio-visual industry in the past two years is still good, and the long-term trend is in a favorable state.
For 2024, industry insiders believe that on the basis of giving full play to the advantages of science and technology and product innovation and strengthening the construction of the supply side, the interest rate hike process of the US dollar and the euro will also come to an end, and the future will enter the "interest rate reduction access". People in the international financial field generally expect the US dollar to enter a cycle of interest rate cuts in 2024, and it is not ruled out that the euro will take the lead in cutting interest rates. This will inject new vitality into the global macroeconomy. It also indicates that the global economy has entered a new upward cycle.
From the perspective of the cycle of the global economy and major international currencies, the industry at the IFC2024 exhibition is optimistic about the coming period of time, and the global professional audio-visual demand has entered a more wonderful moment: that is, on the two wheels driven by technological upgrading + economic upward cycle, the global professional display demand is eager to accelerate development.
Long-term growth stems from innovation and self-confidence
"We are basically at the technological apex of the global pro-AV industry!" is the consensus of many industry professionals in the IFC2024.
From basic display devices, raw materials, manufacturing equipment to terminal products, from audio-visual processors and architectures to domestic substitution of key chips, from the rise of emerging applications, the integration of digital intelligence, the birth of new technical specifications and products to future production capacity reserves...... "we have the strength to be the world's first brother".
On the IFC2024, industry experts said that whether it is demand, the international economic cycle, or even the domestic policy cycle, in the end, the favorable and unfavorable need to be implemented in the word "industry capacity". The comprehensive strength of the local professional audio-visual industry, especially the ability of innovation and research and development, is the most fundamental force for the industry to "ride the wind and waves" and "cope with strong winds and waves".
Technology confidence, product confidence, future confidence: the core industry of IFC2024 can be summarized and described by "self-confidence". Confidence based on strength and innovation is also the core reason why industry players are optimistic about the future development prospects of the local professional audiovisual industry.