Source:show the world

On March 21, Shenzhen kylin villa kirin hall, a spring reception 2019 national intelligence quotient show industry association and Shenzhen commercial display system industry promotion association 2018 annual general meeting was held here, the conference caused the industry business show the high attention of colleagues, guest delegates attracted over 600 enterprises, more than 20 media tracking report.

The following is the transcript of the speech by Dong min, senior vice President of ove cloud.

Good afternoon, everyone. We have a council meeting this morning, and a lot of big guys have had a brainstorming session. Therefore, there are a lot of categories involved, we only put 8, and we insist on 17 categories of commercial display. We will make some changes in the classification method in the following, and I will also talk about it. Since there are many kinds of products, they may not be very detailed. You can communicate with me offline. Today I would like to report to you the "new drivers and new scenarios under the great development of commercial display."

•Dong min, senior vice President of Shenzhen business promotion association•

New kinetic energy we all talked about, in the present science and technology revolution, the momentum which is formed by the industrial revolution, new technologies, new products, new capacity, everyone understand the new scene, on the application side will see that there are a lot of selling terminal automatically, orbit, bar screen, electronic shelf label and so on all sorts of new applications, prompted us in the commercial display industry over the years has great leap-forward development.

First, let's move the timeline to 2009-2020. Virtually every year is considered by economists to be the toughest, and 2018 is no exception. I remember the theme of the reform and opening up conference on the 40th anniversary last year was that every step of our reform will not be easy. So, the global economy and China's economy are very bad in 2018, but the commercial display industry is a clean flow.

In 2018, the eight major hardware sizes of commerceon were 74.5 billion yuan, which was 76.6 billion yuan when we reported to you last year, but the actual figure was 74.5 billion yuan. That's up 32 percent from 2017. In the next three years, the compound growth rate will come to 25.5%, a fairly fast growth rate. Take new retail as an example, not only the hardware, but also the back-end services and content, and even the value of software will be far more than the value of hardware. These data are simply for reference.

Next, we will talk about the new drivers. 5G is already familiar to all of us. We will start to issue licenses in 2019 and commercialize it in small scale. What improvements does 5G bring? As you know, there are still many outdoor media in the era of poster, pictorial and light box. Only a few terminals use 4G network for streaming media. What 5G will bring us is that it can greatly expand access to network terminal data on a regional scale, and have a better experience when people experience ultra-high-definition and high-bit-stream video, so 5G will quickly drive the blue ocean of external media.

As for the uhd plan, on March 1 this year, three ministries and commissions of the state launched the uhd action development plan. Here are some data to share with you. In 2020, 4K TV will be popularized. If you look at the graph on the right of me, the current 4K penetration rate of Chinese consumer TV is 67%.

Take a look at the figure on the left, which shows the penetration rate of 4K on whiteboard. Currently, because the average value of electronic whiteboard is higher than that of consumer TV, 4K will account for a higher proportion, reaching the level of 74%. This is the case at this level. 8K, let me just say a little bit more, 8K is going to be 5% in 2022. Take TV for example, the number of TV sets in China is about 50 million, 5% is 2.5 million. The goal of delivering 2.5 million 8K TVS by 2022 is very promising, and it will also give a big boost to the business display, in terms of hardware.

In terms of content, in 2020, the action plan stipulates that we are a demonstration application to complete 10,000 hours of ultra-hd program recording every year, and 30,000 hours of ultra-hd program recording by 2022, which also brings great impetus to commercial display. When we watch outdoor media, the environment is very bad, such as very far away, such as haze, etc., the display effect is not so clear, ultra-hd video production will greatly promote the industry experience.

Next, looking at the new production capacity, I listed 12 ultra-hd panel production lines of several enterprises, some of which will be in mass production in 2018, and most of them will be in 2019-2020, which is a very intensive production capacity burst period. We also know that most of this capacity is going to television, and television worldwide has been a very small diagnostic range in recent years, fluctuating around 220 million units per year. For whom are so many platforms available? Just for television, that's going to be a very big change in supply and demand. We see a big increase in production of 65 "and 75" due to 8.5 or 11.5 "strip lines.

If we look at the polyline in the small box, the average in 2018 was 42.4 inches, no big change from 2017. In other words, there hasn't been a massive explosion of supersizing in 2018. But in 2019, if you look at the average size, it's going to increase by 2.2 inches, from 44.6 to 42.4, which is a big change. But this time the TV can not digest, you need to rely on commercial display.

Looking at the breakdown of the index, at 55 inches, 65 inches and 75 inches let's see, 75 inches and above in 2019, supply growth is 328%, 65 inches growth is 246%, 55 inches growth will be a little bit smaller, but also in 200% growth. Commercial display is the next super-sized outlet to the sea. Our council has seen a lot of panel factory participation for this reason as well.

From the supply side, we can see a lot of LCD technology, including the display LED technology, but the display technology is changing from the relatively single or relatively monotonous LCD and LED technology to more technologies, all of which are aimed at improving our luminous efficiency and giving consumers a better experience. Of course, these technologies are also first applied to many commercial display scenes, such as samsung's ultra-high-end cinemas in Shanghai and Beijing, yuantai shelf sign, Oriental medical display screen, and samsung QLED digital signage display. These new technologies also bring us a lot of new things.

Next, I will introduce you by category. I have just introduced 8 categories.

Let me first show you commercial television, which is the starting point of commercial display. In 1982, the combination of hotel and TV started in this year. At that time, Beijing jianguo hotel was a typical joint venture hotel, which could be said to be flying out of the sky. However, at that time, international hotel management companies and foreign-funded satellite TV combined to take over Chinese hotels. Forty years later, China's domestic brand seamless connection occupies the majority of hotel TV, which is a category. Its sales have been around 4% in recent years.

In 2011, you know, there was a 4 trillion lag effect, the explosion of real estate, hotels, in 2011, hotels and television produced a very big growth, reaching 21.9%. The next few years were marked by a return and decline in 2012, followed by modest annual increases of, say, 4%. To last year came to a small peak, we call this peak upgrade small cycle overlay national gift single.

We know that the batch of TVS changed in 2011 will be 7 years old by 2018, which is exactly the time for upgrading. Moreover, 2019 will be the 70th anniversary of the founding of the People's Republic of China, and a large number of state gifts will be purchased in 2018, which will last until February 2019. Of course, after march, most of them stopped, to create a harmonious environment, so, a lot of big decoration and construction stopped. We expect it to be back around 4% after 2019. In 2018, however, it rose 9.1 percent.

From the perspective of size, it will accelerate to the era of large screen, which is more than 50 inches, including 55 inches, 65 inches, 75 inches and 86 inches. The size of these super size has increased by 5% compared with 2017, and the sales volume has increased by 8.1%, which means our average unit price is increasing. This is commercial TV.

There are a few apps to report, such as hotel TV and digital signage TV. Hotel TV in 2018, low-end budget hotels have declined, and the rise is more about three-star and apartment hotels, commercial buildings, and four-star hotels. On the right is a list of the top six applications of digital signage TV, you can see that public venues are declining, while the rising industries are manufacturing, energy and resources, and this is the application scenario.

The next category is education whiteboard. We all know that the education whiteboard ushered in the spring with the promotion of policy reform in the past few years, but the profit was not so high in the spring of sales, so there was a meeting whiteboard. Let's talk about the education whiteboard first. I can divide it into projection (blue) and liquid crystal (orange). As you can see, the orange columns hit the 970,000 level in 2018, almost a million, which is remarkable. Digital whiteboards with projection and LCD add up to about 1.25 million, up 10% from 2017. It is a trend that in the coming years, 2019-2022, LCD whiteboards will continue to surpass projected education whiteboards. Educational whiteboards also have ceilings, which range from 1.6 million to 2 million.

Let's take a look at the very popular conference whiteboard, ovi cloud from 2017 to everyone popular science products, we call it three ages: 1.0 age is a very simple panasonic writing whiteboard, can be used to wipe; In the age of 2.0, there was projection; In the 3.0 era, projection, audio and computer are packaged into conference tablets. Of course, conference tablet is also a very good name. It is a very good case to transform TV from entertainment to business and office.

In terms of sales, 254,000 conference tablets were sold in 2018, up 151 percent from 2017. Conference tablets, which have been around for a few years, were just released in 2017, topping 100,000, and are up 100% by 2018. The pace will accelerate further, to more than 400,000 by 2020. Of course, this is an endogenous development process. If our home appliance manufacturers and channel manufacturers participate together, such products will surely grow rapidly.

Private enterprises play a great role in the application, accounting for more than 40%, 44.7% of the market share, almost half of the whiteboard conference. Things like government, finance, education are around 10%.

China encourages mass innovation and entrepreneurship. According to the 12th five-year plan, 5,000 companies will be registered every day in 2013, and 16,000 will be registered every day in 2018. This is a big leap forward.

Let's look at the sales structure of the educational whiteboard and conference whiteboard. Generally speaking, the 75 and 85 "whiteboards on the far right have increased by 7% to 9% respectively in 2018 compared with 2017, and they are still rapidly developing into super large ones. These are the educational whiteboard and conference whiteboard.

If you look at the technology of touch, why does television have a bit of a decline in recent years? Manipulation and interaction are very inconvenient short boards. Due to the need for touch interaction on educational/conference tablets, we've seen capacitor growth and battery growth in recent years. From the perspective of the educational whiteboard, the proportion of capacitor increased by 1.5% compared with 2017. In the conference board, although the capacitor did not increase much, the capacitor + battery increased by 2%, which is the improvement of interaction.

Next, let's look at the competition between two very famous media giants in 2018. In 2018, the sales of advertising machines in China exploded, with a total of 2.738 million units, an increase of 170% compared with 2017. After 2019, the whole market will return to reason. By 2020, the expansion of media resources layout, including the development and application of new retail scenes, will make the category of advertising machines recover to reach 2.54 million.

In fact, as I mentioned before, it is polarization, with growth of 55 inches, 32 inches and 26 inches. In 2018, due to the two advertising giants, the structure of our advertising machine has undergone some deformation. Advertising machines under 30 inches and 39 inches accounted for 82.9 percent, up 41.6 percent or 100 percent. Therefore, the whole size of the structure is deformed. The reason is that in the media, the media accounts for 74.1%, a year-on-year increase of 36.8%, and almost a 100% increase. Such situation will return in 2019-2020. Driven by 4S stores and large supermarkets, the growth of small size will be reduced, which is the future trend.

Let's look at the big screen Mosaic, used to be called the special display, now is the business show, because it is more to the business show field, but also into all walks of life. Some are LCD splices, some are LED splices. The market size reached 14.32 billion yuan in 2018, up 26.4% year-on-year. We're going to be growing by more than 20 percent over the next few years. When we look at the large screen splicing, small spacing, LCD splicing, a total of 21.5 billion yuan.

The backprojection splicing has been decreasing in recent years, while the small spacing has been increasing. In 2017, the blue one is small spacing, which is 8% worse than the orange LCD splicing. In 2018, the LED small spacing surpassed the LCD splicing for the first time. Of course, it is not only LCD splicing that suffers or is squeezed, but also backprojection splicing. The splicing of backdrops has decreased gradually in recent years, from 70% in 2009 to 10% in 2018. I believe that with the transformation of energy and resource enterprises, more liquid crystal splicing will be used, and LED splicing with better performance will also be used.

Here, we will take a special look at the size structure changes of liquid crystal splicing and small spacing splicing. In liquid crystal splicing, we can see 3.5-3.9 and 1.7-1.8, both of which are growing, especially for products within 1.0. There are new products in 2018, and they will grow slowly in 2019. Small space and the original is not the same, 2018 is almost a rush, want to do small space, in fact, we will become more and more pragmatic. Let's see, 1.6-1.5, 2.5-2.1, 2.0-1.8, 1.4-1.2, all sizes are almost 25% of the market share, the blind pursuit of small spacing before, now is a hundred flowers bloom. And, of course, there was a 1.0-0.7 increase of 1.2% in 2018.

Next, let's take a look at projection, which was used in offices and meeting rooms in the early days, and now we can see it in cinemas, in education and at home. Laser projections will reach 418,000 by 2018, and we estimate 869,000 by 2020. Laser projection is more of an alternative to early light bulb projection, especially in the education market. We are divided into five business scenarios: education, home, engineering, business, and cinema, among which only home consumption increased from 2017 in 2018, which is not the growth of sales, but the growth of share. We know there are millet, hisense and so on, they are doing laser TV, so the share of household use is growing rapidly.

In my mind, the sales of home laser TV in 2018 are at the level of 150,000, while the sales of education are at the level of 180,000. Education is up 7.9 percent, household spending is up 100 percent, engineering is up 15 percent, and everything else is up 10 percent or more. However, the share has changed, and the share of other application scenarios has started to decline due to the rapid growth of home usage. In 2018, we monitored 3.56 million projection units in mainland China, not laser projection, but total projection, and 3.56 million non-documentary projection units. And this is mostly non-home scene, because home is the laser TV. So there's a lot of potential for engineering, for education, for business, for cinema.

As for e-paper, this is the first time to report such a new category to you in the association this year. In December last year, we held a business conference to introduce vehicle-mounted devices. In 2018, the global shipments of vehicle-mounted devices are about 170 million, and the number of touch controls is about 50 million, which is 30%. Today I will not talk about car, mainly about electronic paper, electronic shelf pick has two categories: one is electronic paper, one is liquid crystal electronic shelf pick. Since e-paper does not need backlight, it also emits light actively. If you think about it, AIoT, QIoT, LED, e-paper and laser all emit light actively, while liquid crystal emits light passively. They all have common characteristics.

In the future, e-paper will surpass LCD electronic shelf tags by more than 120 million in 2018, and by 2020, the scale will reach more than 200 million, with a compound growth rate of more than 30%. Although the area of the electronic rack pick is not very large, but it carries the value of the service, the value of the operation is very high, we also need to pay attention to.

The last category to tell you about self-service terminal, is also with you product definition of the transformation. The previous definition was based on hardware, such as whiteboard, projection and LED. From the second half of 2018, the definition will gradually be changed. It may not be called terminal in the future, but new retail. What does the new retail category include? Bar screen, electronic shelf sign, self-service selling terminal, digital signage, we have another category called new office, just the meeting tablet, projection and so on will be used in the scene, the scene to change this definition, also hope you and we slowly get used to such a definition.

In 2018, self-service kiosks reached 323,000, 50,000 more than in 2017, an increase of about 20%. In 2018, there were 80,000 screens in China and 12,000 screens in cinemas. Every year, 10,000 more screens will be added, which is the growth of cinemas in China. At 12,000 cinemas, each has six self-service machines. In addition, there were only 800 self-service KTV in China in 2014, 8,000 in 2016, and 52,000 in 2018. This is also a new category, and it will become the category of post-90s and post-00s generation in the future. Including the doll catching machine, it is a category that is paid attention to in the shopping mall and the core business circle.

From 2014 to 2018, the government has issued a lot of policies, including medical care, education, communication, transportation, smart city, security and so on. Almost all industries have issued relevant policies, which is our support.

Take educational information for example. By 2020, the funding for educational information will reach 386.3 billion yuan, an increase of about 20% over 2019. This is wisdom education. I have also seen the intensive release of educational AI all-in-one machines and desktop computers for online courses in the past two days. For example, we have seen the launch of barley TV, including the TV created by Letv CEO, all in order to fill the slightly larger educational gap after the withdrawal of electronic schoolbag.

This is smart new retail, which will grow by around 100% annually from 2017 to 2022 and reach 1.8 trillion yuan by 2022. Take TV for example. TV now accounts for 50% of online sales and 40% of clothing sales, all due to the convergence of new retail online and offline.

The government has put forward a "one-stop" service, and we can see that one door is the government service hall, which allows more data to be used and less common people to be used. It allows you to walk through a door and complete all the work and affairs you need to do. This is "Internet + government affairs". Smart government affairs will reach 450 billion yuan in 2022, an increase of 60 billion yuan compared with 2019. This is smart government affairs.

As for smart medical care, the figure is 1.59 billion yuan in 2022. In 2020, the state requires investment to build 100 smart medical care demonstration bases and 50 head enterprises.

This is smart transportation. The market size will reach 130 billion in 2022, 20 billion more than in 2021. In the last report, we talked about smart charging piles. In 2022, in order to meet 5 million electric vehicles, the government will build 4.8 million decentralized charging piles, which is the business space of our big screen.