Summary of Chinese Smart Projector Market in 2019 and Forecast in 2020

According to the Chinese Smart projection Market Monthly Tracker by RUNTO, the Smart projection Market in China sold 3.246 million units in 2019, up 40% year-on-year. The market volume was 7.81 billion yuan, up 31 percent year on year.

According to the analysis of RUNTO, on the one hand, the continuous growth of the intelligent projection market benefits from the continuous upgrading of products, which can better meet the needs of consumers; On the other hand, the projection enterprises in the New Year festival, 618, double 11 and double 12 activities to promote sales, to stimulate consumers' desire to buy.

Brand: cross-border brands continue to enter, and the concentration further decreases

As an emerging industry, the smart projection market has attracted many players since the second half of 2017. According to online data from RUNTO, the number of new brands in China's smart projection market reached 48 in 2019, including Internet brands such as dangbei and jingdong, as well as content providers such as iQIYI and tencent. The entry of cross-border brands brings more differentiated products to consumers, which is also conducive to the increase of the total market volume. With the increase of brands, brand concentration has further declined, and the share of the top four brands in 2019 is 48.1%, down 1.8 percentage points from last year.

From the perspective of brand structure, XGIMI and JMGO are the top two. As pioneers in the intelligent projection industry, they have maintained their advantages by innovating in product design, emerging technologies and improving their channel layout and service system. Tmall magic screen and xiaomi grew rapidly, with their unique channel advantages and large promotion efforts, and their sales increased by 144% and 719% year on year, respectively. Micro film, Australia and other small and medium-sized brands due to low product prices, into the TOP10.

Product: product configuration upgrade, constantly rich functions

Brightness, although the market to low lumens products, but 1.5-2k lumens segment rapid growth. According to online data from RUNTO, the share of products under 500 lumens accounted for 57.1% in 2019, down 1.8 percentage points from the same period. The lumen segment between 1500 and 2000 increased by 4.8 percentage points, with a market share of 5.8%, mainly due to the popularity of new products such as poly-rice and nut-projection and peak-rice laser TV.

In terms of resolution, FHD accelerated its popularity. With the introduction of Texas instruments' 0.33-inch chipset 1080P solution, the price of FHD products fell rapidly, from rmb4,484 in 2018 to rmb3,689 in 2019, driving the share up 8.3 percentage points to 34.9%. The number of 4K participating brands increased and the price of products fell to within the range of consumer education, increasing the share to 2.7 per cent.

In terms of functions, support for 3D, multi-screen interaction and trapezoidal correction has become a regular feature of intelligent projection, accounting for over 65%. As the application of speech recognition begins to penetrate into TV, projection and other fields, the proportion of speech recognition has exceeded 50% in 2019, an increase of 20.7 percentage points over last year. Autofocus solves the problem of thermal defocusing of projectors, and its share has also increased rapidly, reaching 34.7% in 2019.

Price: kingpin middle end products, high and low segment share growth

According to the online data of RUNTO, the sales price segment of the smart projection market in 2019 is concentrated at 1000-1,999 yuan, but the share has decreased by 9.3 percentage points. The share of the price segment below 1000 yuan increased significantly, mainly due to the sales growth of small and medium-sized brands such as revisida, reagle and weiying. 5000 yuan above price segment also realized growth, mainly due to the pole rice, nuts, peak rice and other brands to drive.

Looking ahead to 2020, RUNTO sees both challenges and opportunities in China's smart projection market, but the overall growth trend will not change.

The supply chain is mature, but the market is still to be regulated

The upstream supply components/components, systems, software, intelligent projection equipment mainly consists of optical machine, master control equipment and other components. Among them, the optical machine is composed of projection chip, projection light source and lens, accounting for about 60% of the total machine cost. At present, the projection light source is mainly LED lamp, and the project of projection chip is controlled by Texas instruments.

The middle reaches are mainly enterprises providing solutions, manufacturing and manufacturing intelligent products, including solution providers, OEM and projection enterprises. There are fewer big solution providers and big contract manufacturers, and more are unknown small solution providers and small solution providers. Projection enterprise participants are increasing, the market competition is more and more intense.

The downstream is mainly the sales channel. The intelligent projection market in China is mainly online, including third-party e-commerce, self-owned e-commerce and emerging e-commerce. Offline channels mainly play the role of education and drainage, but brand experience stores, home appliance chain zones and other accelerated construction, the size of the offline market is expected to further expand.

The outbreak of short-term suppression of market supply, the impact of the year is limited

From the supply side, in the short term face the problem of insufficient labor and capacity. Xinguan pneumonia delayed the resumption of work. Most of the OEM factories did not resume work until February 10, and employees had to be quarantined for 14 days to return to their posts, so there were uncertain factors in the resumption rate.

From the brand side, the market reshuffle or will accelerate. Intelligent projection industry brand concentration is low, there are a large number of small and medium-sized brands in the market; Msmes are faced with difficulties in resolving rent, loans, wages and other issues, or will exit the market.

From the user side, user stickiness deepened, the advantages of large screen prominent. During the period of being forced to stay at home, watching TV series has become an important way of entertainment and leisure. During the epidemic, ultra-hd TV programs have increased, and cinema films have shifted to online premiers. The large screen audio-visual experience brought by intelligent projection is enhanced.

Therefore, RUNTO believes that due to the restrictions of traffic control, blockades of communities and villages, express delivery, logistics and other conditions, the first quarter was impacted to a certain extent, but the important promotion nodes 618 and double 11 were not affected and their importance might be increased, so the impact of the whole year was limited.

Product upgrade, highlighting, hd is the trend

Brightness is constantly upgraded. In 2019, zumi and nut released the H3 of 1,900 lumens and J9 of 1,850 lumens respectively, and it is expected to exceed 2,000 lumens in 2020. The high brightness not only better meets the needs of home entertainment on the large screen, but also approaches the lower limit of laser projection, enhancing the competitiveness.

4K accelerated penetration, the release of the upstream action plan for the development of uhd video industry (2019-2022) and the opening of more and more 4K channels have continuously enriched 4K content. In addition to nut and aotuo code, other downstream brands such as jimi, tencent and viewsonic have released new 4K products, and the number of participating brands is increasing. 4K is expected to become the "basic configuration" for high-quality audio-visual enjoyment.

New technologies are emerging, more automatic and smarter

Voice recognition, autofocus, sidecasting and other features optimize the user experience. In 2020, intelligent projection technology will be developed in a more automatic and intelligent direction.

Automatic correction can be realized when starting up, including forward projection and side projection shape correction and automatic picture definition correction. The pole meter H3 can be adjusted automatically by full automatic correction, no matter it is placed with up and down tilt, left and right tilt or forward and backward tilt.

The home intelligent projection is limited by the principle of imaging, so it is necessary to carry out the steps such as focusing and image correction, which will inevitably interrupt the original viewing experience. Non - inductive focusing on the basis of auto - focusing plus the "non - inductive" features, can achieve shift trigger, remove the line of sight interference of the focus diagram, so that auto - focusing almost imperceptible.

The application of speech recognition is changing from near field to far field. More and more projectors support far field speech, which can be operated on the device by arousing words. Voice print recognition, on the basis of far-field speech, can intelligently identify the identities of different speakers and recommend personalized content according to each person's preferences.

2020 forecast: sales exceed 4 million, but growth slows

Under the downward trend of color TV market scale, the market scale of intelligent projection keeps increasing, which proves that consumers' demand for large-screen viewing exists. The maturity of the industrial chain and the emergence of new technologies push the prices of terminal products down, further stimulating consumption. RUNTO predicts that the smart projection market in China will reach 4.15 million units in 2020, up 28 percent year on year. But the current intelligent projection still cannot replace the traditional LCD TV, the growth rate has slowed down.