Projector Market, a New Darling of Young Chinese Consumers, Sees Robust Growth

TMTPOST--The projector market has gained momentum since 2020. The units of smart projectors sold in China have surged from 1.703 million in the first half of 2020 to 2.889 million in the first half of 2024, according to sales data released by Luotu Technology.

The remarkable growth is mainly attributed to that young people are increasingly shifting to projectors from traditional televisions.

For the older generations, the concept of a home is distinctly structured, with designated areas for the living room, kitchen, and bedrooms, each with specific functions and decor. However, young people today often design their living spaces based on usage scenarios rather than fixed layouts. For example, the living room can double as a fitness area or be converted into a pet or collection display area. Similarly, bedrooms can serve as a private space or a home cinema.

This need for flexible spaces has influenced purchasing trends, with young people preferring products that takes not much space and offers cost-effective solutions. This is a major contributor to young consumers’ preferences for small and portable display devices, and emerging large-screen displays, including projectors and smart screens, are also gaining popularity.

Projectors are particularly appealing due to their affordability, portability, and space-saving attributes. Additionally, their ease of setup and convenience of upgrading make them attractive to young users.

Online market data showed that in the first half of 2024, nearly 80% of projectors are sold below 2,000 yuan, and the sales volume saw a 12.1% increase from the previous year. Sales in this price segment rose significantly, with increases of 22%, 31%, and 16% in the 499 yuan, 500-999 yuan, and 1,000-1,999 yuan ranges, respectively. Conversely, sales of projectors priced above 2,000 yuan have seen a decline in sales year-over-year.

Sales data indicate a significant increase in shipments of 1LCD projectors, which use Liquid Crystal Display technology. This technology is akin to an enlarged magnifying glass displaying images via liquid crystal screens.

Each LCD screen in the projector corresponds to a primary color (red, green, or blue), and together they produce full-color images. While 1LCD projectors are cost-effective and provide good color reproduction and clarity, they may lack the brightness of other technologies and suffer from screen degradation over time.

In the first half of 2024, the market share of 1LCD projectors rose to 68.6%, a five-percentage-point increase from the previous year, with sales up 11.4%. This growth is attributed to more users considering projectors, enticed by their low cost and flexible pricing, which reduces the risk of trial and error.

Technological advancements in recent years have also improved the user experience of low-cost projectors. The highly localized production of 1LCD projectors has significantly reduced supply chain costs. In the first half of 2024, prices for 2.69-inch end products fell below 300 yuan, FHD 3.97-inch products dropped to 700 yuan, and FHD 4.45-inch products reached 1200 yuan.

Lower upstream costs have encouraged more brands to enter the market. Unlike in 2021, when low-priced projectors were dominated by counterfeit and rebranded products, reputable brands like Xiaomi and Xiaoming now lead the market. In the low-end segment, the top four brands—Xiaomi, Xiaoming, Haqu, and Rigal—held a combined market share of 31.8%.

While the maturity and scalability of 1LCD technology have driven the booming of low-end market, high-end technologies like tri-color laser and 4K displays have raised the ceiling of the sector.

In the first half of 2024, the sales share of 4K smart projectors in the online market rose to 6.8%, a 2.4-percentage-point increase from the previous year, with sales up 61%. The number of available models increased from 34 to 59 year-over-year.

Laser display technology, a newer trend in the projector market, is still in the introductory phase, with consumers being increasingly exposed to these products. Laser projectors offer high brightness, excellent color performance, and a wide color gamut, making them a promising future technology.

In the first half of 2024, laser projectors accounted for 11.2% of the market, a 3.6-percentage- point increase from the previous year, with sales up 51%. The market remains concentrated, with the top four brands holding a combined market share of 92.6%.

The projection market is likely to see increased polarization, with low-end products driving volume sales and high-end products appealing to users seeking superior audiovisual experiences. After experimenting with entry-level projectors, some users will upgrade to higher-end models, transitioning from LCD to laser projectors and from FHD to 4K resolution.

As projectors become more prevalent in young households, they are expected to become a powerful substitute for traditional televisions, offering a neat and immersive viewing experience.