Development Status and Future Outlook of Outdoor LED Displays in China

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02/21/2025

On 02/21/2025

By: Cheng Tao, Wang Xinru
Reporters: Ouyang Jing, Meng Xiangjin, Li Xiaoyan

Recently, the southern regions of China have been experiencing extreme heat waves, causing electricity loads to reach record highs, and power grid equipment has been operating under heavy stress. Due to tight power supply in areas such as Sichuan, Chongqing, Zhejiang, Anhui, and Jiangsu, many local governments have implemented measures to reduce electricity consumption. Notices have been issued for orderly power usage, requiring some industrial enterprises to stagger power consumption to ensure a stable supply for residential use. According to official reports, this year is the hottest in China since 1961. As an integral part of urban infrastructure, outdoor LED displays, which are closely tied to city lighting and display systems, have also been impacted. Many locations have paused light shows and outdoor LED creative displays, reigniting discussions on the energy-saving and environmental aspects of LEDs.

In many places, newly renovated outdoor LED screens have become urban landmarks, even popular social media check-in spots. They attract attention from all directions, creating an interactive space between the city and its citizens. Outdoor LED displays have opened up a new paradigm for urban outdoor communication. With both opportunities and challenges, how should the outdoor LED display sector navigate its development?

Table of Contents

Market Development of Outdoor LED Displays

After more than 30 years of growth, China’s LED industry has established a relatively complete industrial chain that includes the production of epitaxial wafers, chip fabrication, packaging, and the application of LED products. The LED display sector, a vital part of the LED industry chain, has been expanding steadily as the industrial chain matures, national policies remain favorable, and downstream market demand continues to grow.

According to the “China LED Display Industry Development Trend Research and Future Outlook Report (2022-2029)” released by the Guanyan Report Network, the market size of China’s LED display industry grew from 33.4 billion RMB in 2015 to 65.9 billion RMB in 2019. Despite the impact of the COVID-19 pandemic, rising raw material prices, and difficulties in export logistics in 2020, which reduced the market size to 53.2 billion RMB, the industry rebounded in 2021, reaching a market size of 57.6 billion RMB with a year-on-year growth of 8.27%. Looking forward, as the global pandemic ends and LED displays become more widely adopted, China’s LED display market is expected to continue growing.

With the rapid advancement of digital technology and LED display technology, outdoor LED displays have already gained a significant share of the outdoor advertising media field. Outdoor LED screens are increasingly favored by advertisers and audiences due to their unique creativity, high-definition multi-angle visuals, and large interactive capabilities. Their influence is expanding beyond first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen, reaching second and third-tier cities. Outdoor LED display advertising may become a new blue ocean market for LED display companies and media companies.

On a macro level, the outdoor LED display market in first- and second-tier cities has reached a mature stage, and the LED advertising industry is approaching saturation. Meanwhile, the diversification of advertising channels and the shift in traffic flow are affecting the market share of outdoor LED displays. On the other hand, the construction of satellite cities, accelerated infrastructure development in third- and fourth-tier cities, and the rise of urban cultural and creative industries are fueling the continued growth of outdoor LED displays. Therefore, compared to first- and second-tier cities, the potential business opportunities for outdoor LED displays are greater in third- and fourth-tier cities.

With advancements in technology, people’s expectations for visual effects are increasingly higher. Advertisers now demand more realistic and clear advertising images. When people can see the delicate texture of a model’s skin in a skincare ad, witness the entire process of food preparation in a food advertisement, or admire the exquisite craftsmanship of diamonds in a jewelry ad, this will undoubtedly stimulate and excite them, leading to better advertising impact. As a result, higher grayscale, contrast, and broader color gamuts have become new demands for outdoor LED displays.

LED screen manufacturers can achieve intelligent brightness control through technological innovation, balancing the need for outdoor LED displays to deliver optimal visual experiences during the day while also reducing brightness at night to promote the sustainable development of outdoor LED displays.

Technology and Advantages of Outdoor LED Displays

Outdoor LED displays have become one of the most important mediums for communication and continue to thrive in modern cities. Based on market demand, outdoor displays that are intelligent, high-definition, and capable of adjusting brightness will become highly popular products. Therefore, companies need to adopt a forward-thinking approach, stay in tune with the times, and increase investment in research and development to ensure their healthy growth. Driven by technology and innovation, outdoor LED displays have gone through a journey of technical exploration.

1. Through-Hole vs. Surface-Mount LED Displays
From a technical standpoint, outdoor LED displays initially used through-hole technology, where the three colors of RGB (red, green, and blue) LEDs were independent. Surface-mount (SMD) LED displays were initially used primarily indoors. However, with the development of LED packaging technology, the limitations of through-hole technology for full-color outdoor LED displays were addressed. Surface-mount LEDs gradually replaced through-hole LEDs, and today, with advancements in packaging technology, surface-mount displays are no longer limited to indoor use. They have become increasingly popular in outdoor applications, experiencing rapid development and widespread use.

Through-hole LEDs are encapsulated using a potting method. In this process, liquid epoxy resin is injected into a mold cavity, the LED lead frame is inserted, and the mold is placed in an oven to cure the resin. After curing, the LED is removed from the mold. Due to the relatively simple manufacturing process and lower cost, through-hole LEDs have a high market share. These LEDs are larger in size and can be assembled manually or using AI machines. With their high brightness and ease of waterproofing, through-hole LEDs are typically used as the light source for outdoor LED displays, particularly in outdoor transparent display projects like LED grid screens.

Surface-mount LEDs are attached to the surface of a circuit board and are compatible with SMT (Surface Mount Technology) processing and reflow soldering. These LEDs address issues such as brightness, viewing angles, flatness, and reliability, while using lighter PCB materials and reflective layers. By eliminating the heavy steel pins of through-hole LEDs, surface-mount LEDs reduce the amount of epoxy resin required in the reflective layer, shrinking the size and reducing weight. This makes surface-mount LEDs approximately half the weight of through-hole LEDs, leading to a more refined final product.

While surface-mount LEDs were initially used primarily in indoor LED screens, advancements in technology have significantly improved their brightness and waterproof capabilities. By using potting machines for resin coating, surface-mount LEDs are now widely used in outdoor LED displays and dominate the market.

Surface-mount LEDs offer superior brightness, wider viewing angles, thinner profiles, easier installation, and comparable or lower costs than through-hole LEDs. As a result, surface-mount technology has captured an increasing share of the market.

To achieve better viewing effects, the demand for display screens has shifted from simple full-color displays to realistic color reproduction. Traditional through-hole LED technology can no longer meet the needs of modern applications. In contrast, outdoor full-color SMD LED displays offer clear advantages in terms of image quality, aesthetics, viewing angles, and maintenance. These advantages make outdoor surface-mount full-color LED displays more suited for outdoor environments. The rise of SMD technology in full-color LED displays has elevated the application of LED screens to new heights.

Outdoor LED displays, with their high brightness, strong visual impact, wide viewing angles, and outstanding color reproduction, have been experiencing rapid development in recent years. They have quickly spread across cities, establishing themselves in both large streets and small alleys. As a promising outdoor media format, LED displays provide unique value in communication that traditional outdoor media cannot match. Today, they have become the “business card” of modern cities, showcasing the commercial vitality and spirit of the city.

2.Market Advantages of Outdoor LED Displays

● More Flexible Outdoor Communication
With the large-scale deployment of digital outdoor networks, LED displays have made significant breakthroughs in functionality. These advancements have expanded capabilities such as live streaming, full-screen content, interactive features, and multi-screen linkage technologies. These innovations allow LED displays to flexibly meet the diverse needs of clients, moving beyond the original concepts of “advertisement players” or “televisions.” As a result, outdoor media no longer suffer from the limitations of monotonous formats and simple operations that were once common.

● Interactive Communication with Unlimited Creativity
In today’s media and market environment, “experience” has become a key demand point for both consumers and audiences, and interaction is an essential aspect for media platforms. By facilitating fun interactions between consumers and brand products, LED displays optimize the consumer experience and enhance brand recognition and favorability. During live events, screens can display new TV commercials (TVCs), using promotional activities to draw in crowds and helping consumers gain a more immersive and intuitive experience. This also deepens people’s understanding of the brand and its products.

● Linked Communication and Multi-Screen Integration
The effectiveness of outdoor LED displays in communication lies in the visual impact they create for the audience. The larger and more numerous the screens, the more impressive the effect. In the world of LED displays, 1+1 is definitely greater than 2. For audiences accustomed to the IMAX experience at cinemas, a traditional rectangular LED screen no longer satisfies their desire for a wide-screen view. As surrounding business districts expand, screens need to grow larger to meet the visual demands of the entire central business area. By combining several large screens into one unified display, a massive IMAX-like screen can be created within the vast commercial area. For consumers passing by, this provides a shopping experience that’s as exciting as watching a Hollywood blockbuster.

● Real-Time, Accurate, and Broad Coverage
Outdoor LED displays can use live-streaming technology to broadcast information to a larger audience in real-time, making the content more authentic and immediate. Live streaming refers to the capability to broadcast events or programs, such as a TV station or a live activity, via satellite signals onto a large screen. By synchronizing outdoor LED screens with television broadcasts or press conferences, real-time information is presented more intuitively, attracting and expanding the audience while extending the brand’s reach. This seamless integration of media channels amplifies the brand’s influence across diverse audiences.

● Time, Location, and Control
Outdoor LED displays are typically installed in high-end commercial districts and busy transportation hubs, where foot traffic is dense. These screens can also be synchronized across multiple locations through media company networks. This allows advertisers to select specific time slots when consumers are more likely to be out and about, such as during peak hours in bustling shopping districts, major city roads, or iconic landmarks. Dynamic advertising on LED displays can capture the attention of large crowds, prompting frequent communication with consumers and encouraging strong purchasing desires.

In the current era of urban cultural, commercial, and tourism integration, along with the boom of nighttime economies, outdoor LED displays have evolved from single-function advertising to multi-dimensional, scenario-integrated communication models. These displays are concentrated in urban core commercial areas, high-traffic roads, office building facades, and other strategic locations, providing advertisers with a range of rich and precise targeting options. Furthermore, with the empowerment of technology and creativity, the effectiveness of outdoor 1D LED displays in advertising has become more efficient, attractive, and influential.

The Application Value of Outdoor LED Displays

In recent years, the demand for outdoor advertising has been on the rise, while the technology behind LED displays has continuously matured. Outdoor LED screens have become the mainstream choice for media advertising today. With high-quality visuals, vibrant colors, and engaging dynamic images and videos, the “landscape” of outdoor LED displays has evolved. Many businesses are now integrating new visual experiences, including naked-eye 3D display technology, providing an incredibly realistic and immersive visual experience. Outdoor LED advertising showcases its diverse display appeal, catering to growing advertising demands from industries such as luxury goods, fast-moving consumer products, and technology. The value of outdoor LED displays has been further unlocked, as demonstrated in the following aspects:

1. Precise Targeting and Close Proximity Coverage
Outdoor LED screens are typically located in urban core CBD areas, high-traffic transportation hubs, and prominent locations such as the walls of upscale residential complexes, offering advertisers rich and precise placement options. These large screens target urban areas with high consumer demand, creating enormous spatial value. Outdoor LED ads in core business districts are cost-effective, with a broad reach, covering large audiences at relatively low costs.

2. Precise Marketing Value and Audience Aggregation
LED screen advertising is concentrated in areas with high consumer demand and economic activity, closely aligning with consumers’ daily lives and work environments. This allows brands to reach target audiences effectively, ensuring precise ad exposure and improving marketing value. According to related data, a large proportion of the audience targeted by outdoor LED screens consists of people with stable careers, including middle-to-senior management, with 32% holding higher education degrees. White-collar workers account for more than 60%, and this group is particularly interested in products related to technology, finance, automobiles, travel, fashion, and real estate.

3. Advertising Effectiveness and Conversion
One of the most notable features of outdoor LED media is its ability to attract the attention of the target audience during prime time. Both advertisers and media operators tend to favor showcasing big-name brands and industry leaders on outdoor LED screens because these platforms have a significant impact on brand and product impressions. The prolonged exposure increases the likelihood of audience behavioral influence, shaping consumer purchase intentions and greatly impacting buying decisions.

4. Showcasing “Premium” Brand Value and Building a Strong Brand Image
Research suggests that LED screen advertising stands out compared to traditional canvas and lightbox ads, offering a more striking, three-dimensional visual impact, and presenting brands with an image of high quality, luxury, and sophistication. The sheer size of the screen grabs attention, enhancing the premium image of the brand or product being advertised and boosting audience acceptance.

5. High Reach and Effective Audience Coverage
Outdoor LED screens feature large display areas with sharp visuals and vibrant colors, delivering a powerful visual impact that easily attracts viewers. This facilitates the effective transmission and comprehension of the information displayed on the screen. With a broad audience reach, these displays achieve a high rate of exposure, ensuring that the message is widely disseminated.

6. Unique Spatial Value
Outdoor LED screens are mostly installed in urban core commercial areas and other high-traffic locations. As society develops and people’s living standards improve, these bustling commercial zones and functional spaces have become the primary activity venues for the city’s mainstream population. Due to their rare and central locations, outdoor LED displays possess considerable marketing value, making them an incredibly powerful media form for advertisers.

The Trend of Small-Pitch Outdoor LED Displays Driving Market Demand

What are Outdoor Small-Pitch LED Displays?
Outdoor small-pitch LED displays typically refer to products with a pixel pitch of 5mm or less. Generally, conventional outdoor LED displays have a pixel pitch greater than 6mm, meaning that the image clarity is only noticeable when viewed from a distance.

As the demand for close-range viewing increases, the development of outdoor small-pitch LED displays, with pixel pitches of P5 or below, has become an inevitable trend. These smaller-pitch outdoor LED displays have made it possible for outdoor advertising screens to become more accessible. Outdoor seated ads and low-pole advertisements are becoming popular, as images remain clear and detailed even from distances of less than 5 meters. This significantly enhances the media’s ability to convey messages.

For example, conventional P10 and P8 displays have ideal viewing distances of 8-24 meters and 10-30 meters, respectively. At these distances, even with a larger pixel pitch, viewers will not notice any significant loss in quality. However, when viewed at closer distances, the “pixelated” effect becomes more noticeable, leading to less crisp visuals. Additionally, small-pitch LED displays are more expensive than larger-pitch ones, and many people opt for larger-pitch displays to reduce costs. Typically, small-pitch LED displays are used indoors, as the closer viewing distance in indoor settings amplifies the pixelation of larger-pitch displays.

Does this mean that outdoor displays should only use P5 and above, while small-pitch LED displays are strictly for indoor use? Not necessarily. There is indeed a significant market demand for small-pitch LED displays outdoors.

Wide Application of Outdoor Small-Pitch LED Displays
Outdoor LED displays are widely used in pedestrian streets, sidewalks, and shopping malls. Many of these displays are placed in central locations such as squares, where viewers are close to the screens. Small-pitch displays are ideal in these settings, as they ensure clear image quality for viewers even at close range. With increasing demand for close-up viewing, LED display manufacturers are increasingly focusing on the development of outdoor small-pitch solutions.

Currently, outdoor small-pitch LED displays have already surpassed the P2.6 mark, with corresponding case studies emerging. Market research and feedback show that there is a strong demand for P2.5 small-pitch LED displays. Therefore, outdoor small-pitch LED displays with pixel pitches around P2.5 are expected to be the main trend moving forward.

Key Considerations for the Popularization of Outdoor Small-Pitch LED Displays

1. Cost Reduction
At present, small-pitch LED displays are relatively expensive, with most being used indoors. Outdoor applications typically opt for displays with a larger pixel pitch to lower costs. To make outdoor small-pitch LED displays more mainstream, cost reduction is crucial. This can be achieved through new technologies that cater to outdoor display needs while also ensuring that the price remains affordable for large-scale use.

2. High Protection Level (Dustproof and Waterproof)
Outdoor environments are more challenging than indoor settings, with numerous unpredictable factors, especially weather-related issues such as typhoons, storms, and heavy rain. Therefore, small-pitch outdoor LED displays must have high protection levels. This includes corrosion resistance, oxidation resistance, and fireproofing. Currently, aluminum alloy materials are a good fit due to their rapid heat dissipation and high flatness, which ensure stable operation in harsh outdoor conditions.

3. Energy Efficiency and Environmental Friendliness
Outdoor displays need to run continuously, consuming electricity every day. Small-pitch displays generally cost more than large-pitch ones, making significant price reductions difficult. However, applying energy-saving technologies to small-pitch LED displays can greatly improve energy efficiency, saving a substantial amount on electricity costs each year. This helps indirectly lower the overall cost for clients.

In addition to energy efficiency, environmental considerations are also important. As outdoor small-pitch LED displays will be placed in locations closer to people’s daily lives, factors such as excessive heat generation from the display housing, safety during operation, noise production, and the potential impact of video transitions on people’s lives must be carefully considered.

Outdoor Small-Pitch LED Displays: The Future Trend
Outdoor small-pitch LED displays represent a new direction and product category in the outdoor display market. These displays have high technical requirements, particularly in terms of the quality of the LEDs, the packaging method, and the waterproof and dustproof performance. In summary, outdoor small-pitch LED displays are an inevitable trend in the industry’s development. In the context of consumption upgrades, outdoor LED displays offer fixed positioning, high visibility, versatility, and high reach, making them an effective medium for communication. As the quality of the display becomes increasingly important to end-users, small-pitch outdoor LED displays will inevitably become more popular.

The Impact of Smart Lamp Post Screens on the Market

What Are Smart Lamp Post Screens?
Smart lamp post screens are LED displays mounted on streetlight poles. Due to the widespread presence of streetlights in urban areas, lamp post screens can serve a variety of purposes in sectors such as urban management, energy conservation, security, and public convenience. These screens fulfill multiple functions based on the needs of the surrounding area. For instance, they can display real-time bus arrival information, provide bike lane directions, and offer weather forecasts for pedestrians. For drivers, they can show construction zone alerts, traffic conditions, and road closures. Additionally, these screens can display commercial advertisements and promote public services. With the increasing demand for such services, the advent of smart cities is bringing new business opportunities to outdoor LED displays.

As technology continues to advance and innovate, the seamless integration of LED screens with emerging technologies will open up diverse development directions for LED screen manufacturers. Outdoor LED advertising displays, when utilized effectively in various media settings and spaces, can create a multi-sensory experience by combining visuals, text, 3D objects, dynamic sound effects, and environmental factors. Moreover, technologies like VR interaction and 3D displays enable the integration of large screen media with mobile internet platforms, creating a seamless offline-to-online connection.

The Future Characteristics of Outdoor LED Displays: Smart, High-Definition, and Eco-Friendly

Currently, the outdoor LED display market is still expanding, but the industry is facing significant challenges. Issues such as product homogeneity, increasingly complex approval processes, and ongoing price wars are difficult to ignore. As a result, outdoor LED display companies are searching for ways to break through these barriers. One potential solution is the integration of 5G technology into outdoor LED displays, enabling multi-screen networking, interactive functionality, and the launch of smarter products. With the coming era of big data, industries across the board are benefiting from data resources, and outdoor LED displays can also integrate big data to enable real-time screen interaction and build intelligent outdoor LED display networks.

Policy Support for Smart Lamp Post Screens

The development of smart lamp post screens has been actively supported by government policies. In 2018, the Ministry of Industry and Information Technology (MIIT) of China introduced initiatives to promote “multi-pole integration” and “multi-tower integration.” In 2019, the MIIT emphasized the use of social pole and tower resources to build micro base stations. By 2020, the push for 5G and smart tower construction gained momentum, and in 2021, the “14th Five-Year Plan” called for accelerated development of new infrastructure, including smart poles. By 2022, the first national-level standards for smart poles were implemented, further supporting the industry’s growth and integration with 5G infrastructure.

At the national level, from 2018 to 2021, various policies were introduced to encourage local governments to build smart lamp posts as part of the broader 5G network deployment. In September 2021, the Ministry of Housing and Urban-Rural Development, in collaboration with several other departments, issued the “Three-Year Action Plan for New Infrastructure Construction (2021-2023).” This plan outlined the promotion of new urban infrastructure based on digitization, networking, and intelligence. It emphasized the construction and large-scale deployment of smart sensing terminals like smart lamp posts, smart meters, and intelligent underground utility tunnels. Regions like Guangdong, Shanghai, and Zhejiang have developed specific planning and construction standards for smart lamp posts, and these poles are now considered important targets for future support and development.

The “Hundred Cities, Thousand Screens” Initiative Fuels the Growth of Outdoor LED Displays

On October 19, 2021, a joint notification was issued by six government departments to launch the “Hundred Cities, Thousand Screens” ultra-high-definition video promotion campaign. Over two months later, on January 6, 2022, the six departments released the implementation guidelines for the “Hundred Cities, Thousand Screens” initiative. The goal of this initiative is to lead with pilot demonstration projects and transform or build new large-scale outdoor screens across the country, with a resolution of 4K/8K ultra-high-definition (UHD). This will enrich UHD audio and video service scenarios and accelerate the integration and innovation of ultra-high-definition content in various sectors, paving the way for the development of new technologies, business models, and industry trends.

Key Aspects Relevant to Outdoor LED Display Operators

The implementation guidelines for the initiative include three key requirements that are directly relevant to operators of outdoor LED displays:

Screen Resolution and Audio Features
The first requirement is the construction or renovation of outdoor LED displays with a minimum resolution of 4K. These new or upgraded displays must also support audio playback or be compatible with mobile devices for audio streaming. Building or upgrading these displays will require significant investment, with funding sources potentially including independent corporate investments, local government funding or subsidies, third-party investors, and joint funding from multiple parties.

Content Requirements
The second requirement focuses on the content to be broadcast. During the “Hundred Cities, Thousand Screens” campaign, priority will be given to broadcasting audio and video content recommended by central and national government bodies. All content must be in 4K/8K UHD, with at least 40% of the content in 8K resolution. Additionally, commercial advertisements must not account for more than 30% of the total broadcast time.

Licensing and Content Distribution
The third requirement concerns the qualifications of the content operators. The operators must be community-level broadcasters with an “Information Network Audiovisual Program License” or provincial-level or above broadcasters holding a “Broadcast Television Video-on-Demand License (Class A).” Furthermore, a dedicated broadcasting control platform must be established, managed by personnel responsible for platform setup, content review, live broadcast monitoring, and emergency content switching to ensure the safety of the broadcast.

Progress and Future Outlook

On July 5, 2022, at the “Hundred Cities, Thousand Screens” industry promotion conference, Qiao Yueshan, Director of the Electronic Information Department of the Ministry of Industry and Information Technology, shared that the initiative had already been trialed in 10 provinces (and municipalities) across China. Pilot projects have been established in 35 cities, including Beijing, Shanghai, Chongqing, Sichuan, Guangdong, Zhejiang, Shanxi, Anhui, Inner Mongolia, and Hebei.

On August 2, 2022, the World UHD Video Industry Alliance issued a notice to its members announcing the launch of the “Hundred Cities, Thousand Screens” test broadcast. The collaboration period ran from August to October 2022, with clear partnership intentions required by August 20 and signal access established by September 10. The initiative aimed to promote the implementation of ultra-high-definition video industry applications, showcase new modes for public large-screen development, and offer trial cooperation opportunities for local screens. Through this collaboration, regional screens could access high-quality 8K UHD content from the Central Radio and Television Station, serving as a model for the “Hundred Cities, Thousand Screens” operational framework.

With this nationwide push for ultra-high-definition content, 2022 is poised to be a year of significant opportunities for the outdoor LED display industry. The integration of UHD content with large outdoor screens is expected to accelerate the industry’s growth and usher in new business opportunities across multiple sectors.

Outdoor LED Displays and Naked-Eye 3D: A Symbiotic Relationship

What is Naked-Eye 3D Technology?

Naked-eye 3D technology refers to the ability to create a three-dimensional (3D) visual effect without the need for special glasses or devices. It works by exploiting the difference in visual perception between the left and right eyes, creating a stereoscopic effect. Outdoor LED naked-eye 3D technology utilizes two LED screens placed at different angles to create video content that aligns with the principles of perspective. When a viewer stands at a particular angle, they see both the front and side of an object simultaneously, creating a realistic 3D effect. Designers match the content with the surrounding structural space, allowing for a perfect visual integration of the content and the real-world environment.

The Growing Role of Outdoor LED Displays in the Market

Outdoor LED displays already dominate a significant portion of the LED display market. The contraction of demand in traditional outdoor advertising directly impacts the overall market for LED displays. However, as the pandemic recedes and cities accelerate their digital transformation, there is an explosion in demand for entertainment and public services, which in turn fuels the need for more advanced display technologies. Naked-eye 3D displays, along with the advancement of cluster publishing technologies, present new opportunities for outdoor LED screens.

In 2018, patents for naked-eye 3D technology peaked at 390, but the number has been steadily declining since, signaling the maturation of this technology. This decline is accompanied by the widespread market adoption of naked-eye 3D displays. Examples such as newly built naked-eye 3D screens and the ones featured in the Winter Olympics highlight the growing popularity of this technology in public spaces. Reports show that the adoption of outdoor LED displays is increasing at a rapid pace, making them the second most popular media resource for advertisers. As digitalization continues to progress, and with the added boost of naked-eye 3D technology, this growth trend is expected to accelerate, marking the transition of traditional LED screens to naked-eye formats.

The Popularity of Naked-Eye 3D Displays

Currently, naked-eye 3D displays represent one of the hottest trends in the industry. Most of the iconic naked-eye 3D displays are corner screens, made from two adjacent flat screens that form a right angle. These screens showcase the different perspectives of a 3D object and use spatial perspective and the adjacent faces of the screen to create visual illusions of light and shadow, adding a sense of volume to the image. The unique viewing angles further enhance this effect, making the content appear more lifelike.

In an era where attention is scarce and the “attention economy” prevails, naked-eye 3D displays capture attention with their striking visual effects. They offer a higher level of engagement, generate buzz, and are more likely to spark online discussions, leading to viral content. The commercial value of naked-eye 3D is immense—it naturally attracts attention, acts as a conversation starter, and can easily bridge the gap between offline and online interactions. Additionally, it contributes to the branding and image of cities. Due to their high costs and large size, naked-eye 3D displays are often located in high-traffic commercial areas or iconic urban landmarks, transforming them into new city attractions or landmarks.

Interactive and Immersive Experiences

One of the most exciting aspects of naked-eye 3D content is its interactive capabilities. In cities around the world, more and more digital naked-eye 3D landmarks are emerging. A prime example is the “Naked-Eye 3D + Interactive Experience” game launched on a giant outdoor LED screen at the Guanyin Bridge pedestrian street in Chongqing. In this nearly 4,000-square-meter display, users can interact with the content, controlling a game joystick to “catch” virtual dolls. The screen simulates the 3D effects of the action, providing a highly immersive and interactive experience for the players.

Revolutionizing Outdoor Advertising

Outdoor LED displays are evolving into a more sophisticated form of visual communication, enabling advertisers to transmit their messages with more engagement and creativity. The giant screens now possess more personality and interactivity, making the communication process more situational and immersive. The value of outdoor media is being continuously explored and enhanced, offering deeper insights into its potential.

Government support, alongside technological advancements, has significantly lowered the costs associated with naked-eye 3D displays, making them more accessible to the market. As we transition from the novelty of naked-eye 3D to its integration into daily life, it is clear that this technology is not just a trend for the future but is already leading the charge in outdoor advertising. The market revenue for naked-eye 3D displays continues to grow year after year, confirming that this technology is not only a promising future market but has already emerged as a dominant force in the advertising industry.

Issues Facing Outdoor LED Displays

Outdoor LED displays differ significantly from indoor ones. Due to their exposure to outdoor environments, these displays must not only perform their core function of displaying content but also ensure high-quality transmission even under direct sunlight. This requires meeting high brightness standards. Additionally, the outdoor environment can be unpredictable and harsh, necessitating exceptional weather resistance for long-term durability. Despite the ongoing development of LED technology for outdoor displays, many challenges remain. These challenges range from high vacancy rates for outdoor screens to difficulties in managing outdoor advertising media. Moreover, stricter urban regulations have created additional obstacles, such as issues related to “light pollution” and “energy efficiency,” as well as technical problems such as black screens, dead pixels, and, in extreme cases, spontaneous combustion. These issues have led many advertisers to express concerns about investing in LED outdoor displays. Furthermore, recent city-wide outdoor advertising campaigns have led to the removal and regulation of many outdoor LED displays. The unexpected “screen removal actions” have posed significant challenges for advertisers and media companies, with many LED display manufacturers also facing a cooling market. Below are some of the key issues that LED display manufacturers must address:

1. Brightness Issues

Outdoor LED displays must be able to transmit information clearly from long distances and multiple viewing angles, even in variable and complex weather conditions. To meet this requirement, high brightness is essential, which, however, leads to the issue of light pollution. High brightness can cause eye discomfort for viewers and significantly increase power consumption, reducing the lifespan of modules and raising operational costs.

2. Color Difference Problems

When a single LED is used, color discrepancies are minimal. However, when multiple LEDs are combined in a display, color differences become more noticeable. Significant variations in the color coordinates can result in poor color uniformity and brightness consistency, making it difficult to convey the intended message effectively, especially when displaying colorful images or videos.

3. Blue Light Radiation

The high-energy short-wavelength blue light emitted from the LED chip, which excites the yellow phosphor, can pose risks. The portion of the blue light that is not absorbed and converted by the phosphor can pass through the backlight module of the display and enter the human eye. This exposure may cause dryness, tearing, or even lead to serious eye conditions such as macular degeneration.

4. Light Pollution

As part of the “city lighting projects,” outdoor LED displays have brought dynamic visuals and aesthetic appeal to urban areas. However, they have also contributed to increasing light pollution, particularly in commercial districts. With the development of urban areas, complaints from residents about light pollution from nearby outdoor LED displays have grown. As environmental concerns rise and government regulations become stricter, the issue of light pollution has become a significant concern.

5. Energy Consumption

Outdoor LED displays, especially those requiring high brightness levels, consume a considerable amount of electricity. According to statistics, the total energy consumption of outdoor LED displays in China amounts to 16.7 billion kWh annually. This is equivalent to about 60 days of electricity generation from the Three Gorges Dam or the consumption of approximately 8.5 million tons of coal, resulting in 17 million tons of CO2 emissions. Reducing the energy consumption of outdoor LED displays and developing more energy-efficient displays is an urgent need to maximize resource utilization and minimize environmental impact.

6. Spontaneous Combustion Risks

The safety of outdoor LED displays has always been a concern, largely due to the rapid expansion of the market in its early stages. Accidents can generally be attributed to two main causes: “natural disasters” (such as aging and neglect leading to circuit deterioration and short circuits) and “human errors” (such as cost-cutting measures that compromise safety). In the competitive market, some companies have adopted a “save wherever possible” approach in production and installation, with minimal redundancy in designs. While cost-saving measures are necessary, over-emphasizing them at the expense of safety can result in severe consequences, potentially affecting not only the manufacturers but also the entire industry.

7. Broadcast Control Security

In China, outdoor advertising regulations are very strict, and many outdoor LED displays are prohibited from connecting to the internet due to security concerns. The transmission of inappropriate content, such as videos containing violence, pornography, or anti-government information, has become a significant risk in the operation of LED display media. Ensuring secure broadcasting and preventing such incidents has become a top priority for advertising operators. Establishing reliable network security and robust control systems is crucial for the safe and secure operation of outdoor LED displays.

Moving Forward: Innovations and Solutions

As user expectations for display quality continue to rise, particularly with the advancements in 4K and 8K technologies, we are entering a new era of high-definition outdoor LED displays. The integration of technologies such as location tracking, facial recognition, 3D, and VR is pushing outdoor LED displays toward a more networked, digital, and intelligent direction. These innovations will open up new avenues for growth and creativity in the outdoor display industry.

Furthermore, advancements in internal technologies, such as the development of improved driver ICs (integrated circuits that control the display’s brightness), will help to mitigate the issue of light pollution. By adjusting the performance of these driver ICs, manufacturers can better regulate the brightness of outdoor LED displays, leading to more sustainable and environmentally friendly solutions.

Future Directions for Outdoor LED Displays: Stability, High Definition, Safety, Energy Efficiency, and Simplicity

1. LED Common Cathode Energy-Saving Technology
“Common cathode” refers to a power supply method used in LED displays that provides separate power to the red (R), green (G), and blue (B) LEDs. This technique ensures that each LED color receives the optimal voltage and current for its performance, as the R, G, and B LEDs have different requirements for optimal operation. By feeding the current through the LED and then to the IC’s negative terminal, the forward voltage drop is reduced, and the internal resistance is minimized.

Common cathode products utilize precise power supply control technologies based on the different optical and electrical characteristics of the R, G, and B LEDs. The intelligent IC control system, paired with an independent proprietary model, allows for the precise distribution of different voltages to the LEDs and driver circuits, reducing overall energy consumption by approximately 40% compared to similar products on the market. Temperature and power consumption are key factors affecting the lifespan of LED displays, and the “common cathode LED display” effectively addresses these issues.

Many companies in the industry have launched common cathode cooling screens, offering low power consumption, low temperature, high refresh rates, and high brightness. These displays serve as ideal replacements for traditional outdoor LED screens. The common cathode cooling screens utilize a 2.8V + 3.8V dual-channel power supply to minimize energy loss. They employ efficient energy-saving driver ICs to effectively control temperature rise, eliminating the need for air conditioning, thereby saving installation costs. These displays also feature ultra-high refresh rates, low brightness loss, and natural color transitions, ensuring high image fidelity. The cool light source provides high brightness, which meets the high reliability requirements of outdoor applications.

2. LED Aluminum Shell Screens: Implementing Energy-Saving and Eco-Friendly Concepts

Outdoor displays must have reliable heat dissipation and waterproofing solutions to ensure long-term stable operation. Without proper heat dissipation and waterproofing, the lifespan of the product is significantly reduced. As a result, many LED manufacturers have developed common cathode aluminum module screens that are waterproof, dustproof, and energy-efficient. These LED aluminum shell screens feature high efficiency, low power consumption, and extended lifespans. Some of these screens can have a maximum power consumption of 200W, with a dynamic average power consumption of just 76W, achieving a true “common cathode, ultra-energy-saving” performance. The energy-saving effect of common cathode technology can reach up to 75%, with reduced attenuation by 60%.

Certain high-end outdoor waterproof aluminum shell screens also offer extremely high brightness and unique curved corner designs, which have gained popularity in the market. Additionally, many of these LED aluminum shell screens can intelligently adjust brightness based on different times of day (morning, afternoon, and night) and weather conditions (cloudy, sunny, rainy), significantly reducing power consumption without compromising display quality.

3. LED Mesh Screens: Adding Color to the Night Economy

Mesh screens, also known as grille screens, are a new type of display made up of strips of light arranged in a grid pattern. These screens are hollow and can also be referred to as “grid screens” or “hollow screens.” Mesh screens are primarily used in outdoor wall-mounted installations, glass curtain walls, building rooftops, outdoor billboards, and scenic elevators. The open design of mesh screens allows for more flexible installation and can adapt to a wide range of building structures.

One of the key advantages of mesh screens is their light weight. Due to the grid structure, these screens are also highly wind-resistant. Mesh screens are rated with an IP67 high protection level, meaning they are fully waterproof, ensuring safety and stability.

These screens are widely used in commercial real estate, shopping centers, exhibition halls, airports, metro transit hubs, scenic elevators, creative spaces, chain stores, cultural tourism projects, and stage performances. The “Aurora King” LED mesh screen utilizes independently developed tri-color LED chips, providing a lightweight, thin, and transparent design, with energy savings of over 40%. The B-series mesh screen weighs less than 10.9 kg per square meter and is thinner than 70mm, offering over 70% transparency.

One notable example of mesh screen technology is the transformation of the Haixinsha Sail Screen, which is part of a landmark project in Guangzhou. The original display’s 100*25mm pixel pitch was replaced with the Leedarson Zebra series LED mesh screens, which have a 31.25*31.25mm pixel pitch. The LED mesh screens form the “Asian Sail” design and have become an iconic landmark for promoting Lingnan culture. The 4,350-square-meter LED sail screen serves as an outdoor cinema, large-scale performances, and advertising platform, enriching the cultural and entertainment experience for both locals and tourists.

4. The Trend of Outdoor Steel Frame Structures: Simplicity, Easy Installation, and Safety
Many outdoor LED displays now come with stackable cabinets that are easy to assemble and include quick-locking systems that allow for single-person installation. In addition, more LED solutions are incorporating modular components and front-end access for rapid servicing. These features not only reduce installation time and complexity but also allow users to adapt the design and configuration to changing needs.

The installation methods for outdoor LED displays vary based on location and can include wall-mounted, embedded, pillar-mounted, or hanging installations. During windy seasons, outdoor LED displays must be supported by robust steel frame structures to prevent the screen from falling. The emergence of mesh screens and transparent screens has addressed both transparency and weight-bearing concerns, ensuring structural stability while enhancing the aesthetic appeal of cities.

For example, Zhejiang Weigu has developed an innovative outdoor panel display that addresses the common issues with bulky enclosures, high energy consumption, and safety risks. The Weigu outdoor panel display breaks away from traditional designs that rely on bulky enclosures for display units. This modular panel design allows for easy assembly and customization of display sizes, while the progressive locking mechanism makes installation straightforward. The lightweight metal alloy heat dissipation panels and active heat flow designs contribute to energy efficiency and prolonged service life.

The Weigu outdoor panel display has passed the 3C certification and is committed to delivering high-quality, compliant displays. Made from lightweight metal alloy materials, these displays are safer than traditional plastic designs, offering enhanced resistance to high/low-temperature deformations and superior corrosion resistance. This makes them an ideal choice for outdoor installations. Weigu has successfully solved the issues related to outdoor LED display structures and rapid installation.

Conclusion

Numerous cases have demonstrated that the combination of technology and content is the future focus for outdoor LED displays. These advantages not only attract traditional brands but also draw the attention of the film and television advertising sectors. With the widespread application of 5G and 8K technologies, the future of naked-eye 3D high-definition LED displays holds tremendous potential. The inevitable upgrading and transformation of outdoor LED displays will make them smarter, marking a new era of innovation.

As such, outdoor LED displays can leverage technological advancements to optimize the products themselves, while strategically adjusting to the specific needs of different applications and regional developments. By following the principle of “adapting to local conditions and changing according to needs,” the industry can continue to grow and thrive.

From a broader perspective of the outdoor LED display market, there is still room for further development. As the scope of LED display applications continues to expand and technology matures, basic display functionality alone can no longer meet the increasingly diverse needs of customers. For instance, achieving synchronized content display and information sharing across multiple screens is a challenge that requires LED display manufacturers to continuously refine their technologies to meet user demands.

Beyond quality and display area, customization and environmental considerations will become more important. There will also be a growing demand for after-sales services driven by high standards of customer support. This shift will be a key factor in closing the competitive gap and capturing market share. The company that takes the first step will be well-positioned to lead the future market, meeting new consumer demands and staying ahead in the competition.