Press releases

London, 22nd April 2025 – Global technology market intelligence firm CONTEXT has released its latest Large Format Display (LFD) market figures, revealing a complex and uncertain landscape for the sector in early 2025.

According to these insights, the market recorded a 1.7% year-on-year decline in unit sales in Q1, accompanied by a significant 10.9% drop in revenue, driven by sustained pricing pressures and ongoing concerns around international trade policy.

Aaron Smith, Senior Analyst for Displays at CONTEXT, commented: "We continue to see the impact of trade policy and tariff developments play out across the global LFD market. While the 10% baseline tariff on goods entering the US remains in place, the 90-day suspension of reciprocal tariffs, excluding China,  has provided temporary relief for key exporting nations such as Japan and South Korea. Without this suspension, tariffs would have been as high as 30% and 35% respectively, significantly increasing costs."

With the suspension currently paused for LFDs, the sector has been granted a short-term reprieve, according to CONTEXT. "However, we are not out of the woods", said Aaron Smith. "Expectations of further tariffs on semiconductors, a critical LFD component, could once again disrupt pricing structures and supply chains."

CONTEXT's report highlights that further complexity may emerge from volatility in US government decision-making, which could lead both businesses and consumers to consider alternative brands amid fears of future price hikes. Some manufacturers are already responding by moving stock into US warehouses ahead of potential policy shifts, a strategy reminiscent of the pre-tariff activity seen in other markets.

Latest analysis also highlights the continued decline in average selling prices across most display categories, with Direct View LED experiencing the most significant year-on-year price erosion. While this has spurred some demand, particularly in markets looking to maximise strained budgets, it has also contributed to declining revenues and margin pressures for vendors and channel partners.

Performance across Europe varied. Markets such as France, which benefited from Olympic-driven demand in 2024, experienced a sharp correction of -25.5% in units in Q1 2025. Similarly, Interactive Displays saw notable declines in Germany (-17.2%), Italy (-65.3%), and Spain (-21.3%), with Spain in particular showing signs of market saturation following strong refresh activity in the previous year.

"2025 is shaping up to be one of the most challenging years to forecast", said Aaron Smith. "While price drops are creating opportunities in some segments, uncertainty around tariffs, particularly those potentially affecting semiconductors, means there is considerable risk to both supply chains and pricing strategies. The industry also grapples with changing procurement behaviours, with some customers accelerating purchasing to avoid future cost increases, while others consider renting solutions to mitigate capital expenditure."

About CONTEXT
CONTEXT’s global market intelligence, performance benchmarks and opportunity analysis empower clients to optimise operations and accelerate tomorrow’s revenues. With over 35 years of industry partnership and experience reporting on large datasets, CONTEXT delivers analytics at all points in the value chain, providing clients with actionable insights rooted in concrete data and a profound understanding of customer needs. CONTEXT is headquartered in London, with over 300 staff across the world, and in 2019 was recognised as one of the UK’s Best Workplaces™ by Great Place to Work®.

Press contact
Funda Cizgenakad
T: +44 7876 616 246
E: Funda@contextworld.com