European display market faces falling prices in 2025

The European Large Format Display (LFD) market is facing challenges as unit sales and average selling prices (ASPs) decline, despite an increase in shipments compared to the previous year.

Aaron Smith, Senior Analyst for Displays at CONTEXT, highlighted saturation in the education sector as a factor affecting demand. "The education sector, which had been a strong driver of LFD demand in recent years, is showing signs of saturation in some countries", he stated. "Investment programs in key markets like Poland and Italy have wound down, and many institutions completed refresh cycles in the previous school year."

Corporations still exhibit demand for unified communication displays, particularly touch-enabled models, which supports segments of the LFD market. High-brightness displays and outdoor signage are registering performance levels above those of 2023.

Recent reports from CONTEXT also indicate a fluctuating start to 2025 for Direct View LED (DVLED) displays. January saw price competition increase, stimulating demand, as major vendors reduced DVLED prices. However, due to the modular nature of DVLED pricing, total costs remain high, pushing some channel partners to encourage bundled promotions and rental models as an alternative.

"The LFD market in 2025 is in a delicate balance," added Smith."While demand remains steady in certain segments, price competition is eating into margins, forcing vendors and resellers to rethink their strategies. Bundling full solutions and expanding rental options are key approaches that could help offset the impact of declining ASPs."

Spain leads the regional markets for LFDs, driven by substantial sales in DVLED and signage as 2025 began, following significant growth in interactive displays in 2024. Poland shows revenue growth above the previous year's levels owing to strong demand in signage, DVLED, and interactive solutions. In contrast, Germany and the UK reported modest unit sales growth, primarily in signage displays, but aggressive price cuts have affected revenue.

Smith noted the ongoing economic scenarios: "As 2025 unfolds, the LFD market is facing an environment where constrained budgets are being met with lower costs, but at the expense of margins. Vendors and channel partners must adapt to this shifting landscape by leveraging promotions, bundling strategies, and flexible purchasing models to maintain profitability."

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