Market Insight

Chinese government enables the growth of videowall displays through investments in infrastructure

December 08, 2014  | Subscribers Only

Sanju Khatri Sanju Khatri Director, Consulting and Strategic Advisory Services

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The LCD videowall market in China has experienced tremendous growth this year, with Q3’14 achieving a growth rate of 20% quarter on quarter in shipment units. Massive public safety initiatives, surveillance, security and transportation upgrades by the Chinese government have led to an increased demand for control room displays. The control room is a lucrative market for display manufacturers, as it requires specialized professional grade, ultra-narrow bezel displays which have higher profit margins

Spurred by a series of terrorist attacks and riots in the Xinjiang region, the central government is investing $2 billion to improve the nation’s public safety, a significant 70% increase from 2010. Provincial governments are also launching “safe city” initiatives that mainly involve upgrades in the local police network surveillance centers. This has prompted companies to launch targeted video-wall solutions, for instance, Delta presented its new Industry Intelligent Monitoring Management System (iPEMS) at Security China 2014 in October.

China is also in the midst of a major upgrade of its national transportation system. The National Development and Reform Commission announced in mid-October its approval of feasibility reports on five airport and three railway projects amounting to $24.4 billion. These new projects will require videowalls for use in monitoring systems streaming feeds from numerous surveillance cameras to effectively integrate real-time monitoring of weather changes, traffic flow, accidents, and operation schedules itself.

Several distinct attributes make LCD videowalls a suitable choice for control room applications. The main advantage of LCD videowalls over competing technologies is its lower pricing and smaller footprint. LCD videowalls are more affordable than Rear Projection Cubes (RPC) or LED videowalls. Meanwhile space is a limited resource in the control room, and LCD videowalls takes up considerably less space as compared to RPC. With recent advancements in LCD display technology resulting in the dramatic reduction in bezel width, LCD video walls can now deliver near seamless integration. Several display manufacturers have launched new Ultra Narrow Bezel (UNB) LCD video wall models, for instance NEC launched a 3.5mm model in March and Planar 3.7mm model launched in October 2014.The two leading display manufacturers – Samsung and LG – also offer video wall products with 3.5mm bezel-to-bezel width.

With China leading the way, other developing Asian countries with infrastructure plans in the pipeline will follow suit and further drive the growth of the video wall market.

 

Geography
China
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