Technology

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market

The laser TV industry is currently highly concentrated. According to Lotto Technology, Hisense is the leader in the laser TV field, with a shipment share of about 46% in 2020. Because of the high average price of laser TVs, which are mainly sold offline, Hisense has a perfect offline sales channel and maintains a leading position in the laser TV segment. The competition in the second group is getting fierce, with Fengmi relying on the key components of its parent company, Guangfeng Technology, to expand its product line, with a market share of 18% in 2020. Changhong ranks third with a 15% market share. Laser TV industry shipments CR3 close to 80%.

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market

The core hardware technology has a greater impact on the cost of laser TV. The industry chain of laser TV is long, and only a few domestic companies have mastered the core technologies of light technology, anti-light screen, etc., and built a product platform with good expandability based on this, so that they can expand the product layout and improve sales and market share relatively efficiently and at low cost. Because the laser TV optical machine of Light Peak is self-researched, it can achieve a higher gross margin compared to Polaris laser TV with a lower product unit price, which shows that strengthening hardware technology can help reduce the cost of laser TV. We expect the head brand will continue to improve the industry chain extension ability to expand the advantage, laser TV market concentration is expected to increase.

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market

The price difference between laser TV and non-laser light source projectors is large. Compared to laser TVs, home projectors with LED light sources are generally smaller in size and lighter in weight, and have stronger mobile attributes, adapting to multi-regional scene switching. Laser TV in the use of the process to ensure that the viewing effect generally need to match the anti-light curtain, the use of the environment is relatively limited, more adapted to the living room as the center of the viewing scene. In terms of price, laser TV uses laser light source and ultra-short focal length lens, while most non-laser home projectors use LED light source and medium telephoto lens, under the same conditions, the price of laser light source is higher compared to LED light source, ultra-short focal length lens is more difficult to produce and assemble compared to medium telephoto lens, so the price of laser TV is generally significantly higher than that of non-laser light source projectors.

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market

Laser TV market segment users are relatively price insensitive, the pursuit of the ultimate large-screen experience, and the main application of laser TV scene for the living room, so the future development of laser TV technology is more focused on improving the brightness of the product and picture quality performance, to achieve competition for the living room LCD TV. The non-laser light source home projectors need to further meet the diversified application scenarios of higher requirements for product ease of use, to solve the user's pain point of portability, so the non-laser light source home projectors technology development in the algorithm and other intelligent technology is relatively more focused, aimed at improving the user's comprehensive use experience.

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market

Laser TV: higher unit price, the market potential to be further explored laser TV current industry size is still small. Laser TV series are projectors with laser light source and ultra-short distance projection capability. 2020 laser TV market shipment in mainland China is about 212,000 units, YoY+5.9%. Laser TVs are currently costly and are mainly sold in the high-end market. The cost of laser TV is difficult to slide down in the short term, and laser TV is facing fierce competition from traditional large-size LCD TVs and new large-screen TVs such as ULED and OLED. We expect that in the short term, laser TV is still difficult to rapid volume, but with the acceleration of mass production of TV giants, laser TV is expected to usher in a high growth period in the next 2-3 years, and domestic shipments are expected to exceed 5 million units in 2028, with compound annual growth exceeding 30%.

Laser TVs will become the mainstay of future home theaters, LCD TVs may exit the mainstream market