Opportunities for the LED Cinema Screen Market Amid the US-China Trade War

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On 04/22/2025

As the US-China trade war deepens in April, its profound impact on various industries has become increasingly clear. Some industry experts believe that the LED cinema screen market may stand to gain certain opportunities from this geopolitical conflict.

Table of Contents

LED Cinema Screens vs. Projectors: How the Trade War Could Impact the US Market

The global movie projector market is dominated by DLP solutions provided by TI (Texas Instruments), which holds over 95% of the market share. TI is essentially the sole “gatekeeper” in the movie equipment industry, making it the uncontested market leader.

As the trade war escalates, Chinese companies will face challenges in the economic viability of importing DLP chips from the US, and the cost of directly importing complete systems will also rise. While DLP-based projectors are also produced in Japan and Europe, the exact impact of the trade war on these products remains unclear.

However, regardless of the downstream market shifts in the global movie projector industry, the fact that the US supply chain controls the core of movie projection technology creates inherent risks for Chinese cinema chains. These risks are expected to intensify. As a result, experts suggest that this situation presents an opportunity for the rise of new LED cinema screens in China. The Chinese movie market is the largest in the world for both equipment demand and box office revenue. If the LED display and LED cinema screen sectors can align more closely, it could significantly accelerate the growth of next-generation movie projection technologies.

Key Advantages of LED Cinema Screens

Currently, LED cinema screens hold several core competitive advantages:

Domestic Control of the Supply Chain: China controls more than 70% of the global LED production capacity and innovation resources.
Superior Display Performance: Many LED cinema screens outperform traditional projectors in various metrics. For instance, the UCine LED series by Unilumin covers 5m-20m sizes, offering P2.5-P5 pixel pitch, 2K/4K resolution, 300 nit peak brightness, ultra-high contrast ratio (∞:1), 100% DCI-P3 color gamut, 16-bit grayscale, and a 100,000-hour lifespan.
High Brightness for Diverse Operating Needs: LED screens deliver superior brightness levels that meet the varying needs of the cinema industry.
Continuous Innovation and Iteration: The LED display industry is constantly innovating and advancing.

Challenges for LED Cinema Screens

While LED cinema screens have undeniable advantages, they still face significant challenges, mainly due to their higher cost. Although prices have decreased over the years, LED cinema screens remain about twice as expensive as traditional projectors, which poses challenges for widespread adoption in budget cinemas. However, if the DLP projection systems are impacted by the trade war, either through supply chain disruptions or rising costs, cinema chains may recognize the need for a “substitute option.” This could help mitigate the price disadvantage of LED cinema screens.

Overcoming Industry Standards: Competing with Hollywood

In the film exhibition industry, apart from TI’s dominant DLP technology, Hollywood’s DCI (Digital Cinema Initiatives) standard serves as another major industry “barrier.”

Although the DCI standard is not an official international or national standard, it is effectively the de facto industry standard due to Hollywood’s dominance in global box office sales. This makes it mandatory for cinemas worldwide to meet the DCI quality and security standards to play Hollywood films.

In light of the new round of tariffs, the National Film Bureau of China has responded, stating that “The US government’s erroneous imposition of tariffs will inevitably decrease Chinese audiences’ favorability toward American films. We will respect market dynamics and reduce the import of American films.” Furthermore, during a state visit to China by Spanish Prime Minister Sánchez, China and Spain signed a memorandum of understanding on film cooperation, signaling the acceleration of the diversification of film imports into China.

The Rise of Chinese Domestic Cinema and the Impact on DCI Standards

Recent events, such as the success of Chinese films like Ne Zha, which grossed over ¥15.9 billion, have boosted domestic confidence and market influence. In contrast, the global performance of Hollywood films has shown signs of decline, with high-budget Hollywood productions such as Snow White failing at the box office.

This shift reflects a growing trend where Chinese audiences are less receptive to Hollywood narratives, and there is increasing demand for a more diverse range of film content. This context could speed up the diversification of imported films, benefiting China’s film industry while expanding its global cultural presence.

As a result, the DCI standard, which is currently tied to Hollywood’s dominance, could face challenges. Although it is unlikely to be fully replaced in the short term, a parallel system is emerging. In June 2024, China submitted the proposal for the Digital Cinema LED Theater Optical Technical Requirements and Measurement Methods standard to the International Organization for Standardization (ISO). This proposal was approved, and the project is now officially underway. The establishment of an international LED cinema screen standard is a significant step for the industry, driven by both market needs and the rise of LED cinema technology.

The Rapid Expansion of LED Cinema Screens in 2025

As China continues to expand its cinema market and produce high-quality domestic content, the adoption of LED cinema screens is accelerating. By the end of 2024, over 1,000 new cinemas were built in China, adding nearly 4,700 new screens, bringing the total number of screens to 90,968. Additionally, there are 280 rural digital cinema chains with over 43,000 mobile film teams. Experts predict that at least 10% of these screens will be upgraded with LED technology in the near future. As the cost of LED cinema screens continues to decrease, their accessibility is increasing, and market penetration is accelerating.

In 2024, over 60 LED cinema screens were installed across the country, with the market size reaching over 100 screens for the first time. By the first quarter of 2025, 30 LED cinema screens were installed, marking a clear acceleration compared to 2024.

Going Global: LED Cinema Screens Beyond China

As Chinese LED cinema screen manufacturers continue to expand their domestic market, they are also targeting international markets. Unilumin’s UCine LED cinema screens have already been installed in Los Angeles, Moscow, Eastern Europe, and other regions. The global expansion of LED cinema screens, as a high-quality product with Chinese innovation, is set to continue accelerating.

Conclusion

In conclusion, LED cinema screens are poised for rapid growth, thanks to their cutting-edge technology, superior display effects, and highly autonomous supply chain. Amid the risks posed to US-dominated projection systems by the trade war, coupled with the declining influence of Hollywood’s content industry, China’s LED cinema screen market is well-positioned to thrive. According to TrendForce, there are currently over 200,000 movie screens globally, with over 30,000 high-end screens. These high-end screens are likely to be replaced by LED cinema screens, with an estimated 15,000 screens in the Chinese market alone. As prices continue to drop, LED cinema screens with lower price points will significantly increase their market penetration in the coming years.