9 Factors that Affect the Cost of LED Displays

LED Display Cost

Table of Contents

LED display screens have become part and parcel of today’s world. Modern cities have LED displays and billboards as decorative pieces. You cannot leave a street without seeing a screen advertising something. Every home and office has a display screen.

There are many kinds of display screens available in the market. And every type has some distinct features installed in them. As a result, every sort of display screen has its price. Besides, the prices of display screens depend on many factors. These factors include:

  • The base cost of the LED display
  • Maintenance cost
  • Installation
  • How the cost of an LED display relates to power consumption?
  • Transportation fee
  • Location cost
  • The price of LED displays also depends on their supply and demand.
  • Spare parts
  • LED display specifications

This knowledge is very critical for customers. Knowing the factors that affect the screen price can save you some money. As a result, you can get the best suitable display screen for your business. In this post, I will discuss how these factors decide on display screen prices. Let’s start first with the base cost of the LED display.

LED Display Cost

The base cost of LED display:

We must consider two major factors upon which the set’s cost will depend. These factors include LED cabinet cost and LED control system.

First, I will discuss LED cabinets’ role in determining the display screen’s cost. Then we will discuss other components of it. Components of the LED cabinet are a PCB board, power supply, driving IC, and LED lamp beads. All these components, as a whole, suggest the price of an LED screen.

It is needless to say size also determines the price. The most recommended screen ratio is 16:9, which is ideal for the best viewing experience.

For advanced features, we have to pay more. For example, a wireless connection will charge more than a hardline connection. Also, LED screens with auxiliary functions cost more. For instance, we need extra equipment like a temperature sensor for temperature monitoring. So, one has to pay for this additional equipment or auxiliaries.

LED Display Cost

Maintenance cost:

For proper working of LED screens, they need maintenance. Thus, you will have to pay to keep them in good condition by regularly checking them. Moreover, display screens also need repairing when necessary.

Standard maintenance costs include when one has to replace the power supply. Other replacements include receiving cards, LED display modules, LED lamp beads, etc.

Repairing charges or maintenance vary with the company. Each company offers different warranties. Depending on the companies, the price will vary.

It also depends upon the professional technicians of the sales team. One can limit its maintenance cost.


The installation process varies with the type of display screen. For outdoor LED screens, the requirements for installation are different. Indoor setups are pretty easy as compared to outdoors.

We need exceptional installation staff for its complete installation. So, the price varies with the type of setup. The design of display screens will also have an impact on the budget needed. For instance, for the stacked method, we need a scaffold structure.

Other equipment we need for installation also bears the cost. This equipment includes a crane or some other support structures. So labor cost is another factor that affects the cost of LED.

LED Display Cost

How the cost of an LED display relates to power consumption?

A good quality display may save money for you. Power consumption has a relation to current and brightness. If your screen runs all day with full brightness, the power consumption will be higher. Similarly, when you play content with white background, it will need more luminance. Thus, the power consumption will be more again. And you will also need to pay more.

But we also have an exception here, i.e., Gold wire LED. In this case, we can control the current same as the standard type with low brightness.

In short, you may save some money here by buying a good quality LED screen. Or you can do so by tuning the screen.

Transportation fee:

We must pay for the transportation of any goods, which is part of the total cost. This cost varies from region to region. The import, shipping, and taxes are different for different countries. Thus, the LED screen price will be according to where we transport it. As this cost varies in the region, it also varies with the mode of transportation.

For example, air shipping is more costly than sea shipping. We can save time by air shipping, but the expenses are five times more than the latter. In this part, we can save money by choosing sea shipping, but we must compromise time. On an urgent basis, we can select different ways of shipping also.

Location cost:

A good location can be a significant factor in suggesting its cost. The cost of LEDs varies with the area. When there is a crowd of people, the price varies compared to places with less volume.

In crowded places, expenses will be more. For instance, sites like downtown and shopping malls will offer more prices. Other locations include main highways, toll, bus, and subway stations.

LED Display Cost

The price of display screens also depends on their supply and demand:

The prices of everything depend on supply and demand. A balance between these two is an ideal situation. The price will get disturbed if any of these two gets off-balanced. For instance, during the latter part of 2020, there was a rise in the demand for LED screen products. An ordinary person may think that this is good.

But hang on. It is not good if the demand gets high, but the supply doesn’t meet the need. The same thing happened in 2020. Thus, the manufacturers or suppliers had to increase the product’s price.

In economics, supply and demand are essential in determining the price of a product. I will further explain this with a case study. For example, we have a high supply of LED screens. It means that there are lots of display screen manufacturers. Display screens are surplus in the market. But the demand for the display screen is low. People are simply not buying many screens due to some reason. Thus, the prices of these screens will decrease. It is because we have screens in excess in the market. Suppliers have to sell them. They can’t just keep them in their shops. Thus, they will have to lower the price and sell them.

Now we will look at the other scenario. For example, the demand for LED screens is very high. But the supply is low due to some reasons. It means that it is challenging to find LED screen products. Thus, the price will increase. It is the law of demand and supply. Prices are just numbers.

Before moving on to the next factor, I will discuss how the key components affect the price of LED screens.

The shortage of semiconductor chips:

There are two primary components of LED screens.

  • Semiconductor chip
  • Printed circuit board PCB

LED Display Cost

But these components are not just crucial in the LED display screen industry. The semiconductor chip is the key element. It is a component of many other electronic devices such as:

  • Smartphones
  • Monitors
  • Medical devices
  • Electrical appliances and many others

Sometimes, the demand for these critical components gets disturbed. And it directly affects the price of electronic devices, including LED screens. For instance, there was a lockdown in many parts of the world during COVID-19. As a result, the manufacturing units stopped working. And when the market started to revive, there was a shortage of semiconductor chips. So, although the chip suppliers increased their production, it was still insufficient.

The shortage of semiconductor chips affected various industries. It also hit the LED display screen industry badly. It was because the chips are integral parts of display screens. You can say that the semiconductor chip is the heart of an LED screen.

Thus, the prices of display screens, like other devices, can go high or low due to such circumstances. Due to a shortage of chips, its price increased. And as a result, the manufacturers or suppliers have to increase the cost of display screens. The primary issue is that the prices of raw materials can increase. And the manufacturers have to increase the price of the product.

Now, let us see another case or example.

How the price of copper affects the price of LED screens?

As mentioned above, a printed circuit board PCB is a key component of display screens. And yet, it is also the backbone of many other electronic devices. Thus, there will be competition among various industries if there is a PCB shortage.

But how PCB price relates to the price of copper? Well, substrate materials with copper foil are the component of PCB. And one of the raw materials used is copper. The cost of copper increased many times in 2021 due to the global economic crisis. So, as a result, the price of PCB increased. And it had a direct consequence on the cost of LED screens.

From the above discussion, you can get an idea of how raw materials affect the prices of products. For example, how can the shortage of a simple product affect the cost of the product?

Spare parts:

LED screen price also depends on its spare parts. You can buy some if there are no more spare modules with the same color or brightness.

Generally, manufacturers provide 1% free spare parts for each display screen. But, we, Dreamway Technology, provide 3% free spare parts depending on the project. Apart from this, we also offer a guarantee for each bulk order.

LED Display Cost

LED display specifications:

We know that different types of LED screens have various features. The primary characteristics of display screens include:

  • Brightness
  • Pixel pitch
  • Viewing distance
  • Size
  • Contrast ratio
  • Refresh rate

These are some of the primary features of display screens. There are many others also. The price of LED screens also depends on these features.

It is a fact that the sweeter you add, the more reward you will get. As the features of a device increase, so does its price. For instance, we measure the brightness of the screen in nits. The higher the nits are, the higher the luminance is. As a result, the cost of the display screen is high. The same is the case with other features.

The pixel pitch refers to the density of lamp beads in the display screen. The narrow the distance between lamp beads, the higher the resolution is. And as a result, the image or display will become clearer and more vivid. And subsequently, the price of LED displays will be high.

Now you know that display screens with higher specifications will cost you more. So here, I will give you a piece of advice. When buying an LED screen product, first get a complete understanding of what you want. What are the needs of your business? Then, you should pick the product that has the related features. In this way, you can buy the type of screen you need at a suitable price.

LED Display Cost


I have tried above to explain various factors that affect the price of LED display screens. All these factors impact their cost.

You should have a basic knowledge of how these factors affect the price. This way, you can buy quality products that suit your business at reasonable prices.

Dreamway Technology:

Dreamway Technology has more than 13 years of experience in the LED display field. We strive to provide stable quality LED display products at affordable prices. Besides, we focus on problem-solving for our customers.

We have a name for supplying quality products with moderate prices in the market. Besides, we offer more than 3% free spare parts depending on the project. Contact us for more details.

Sunny Wong
Sunny Wong

Hello. I am Sunny Wong, the author of this post.

I entered the LED screen industry in 2008 and have always been in this field.

The purpose of this article is to share with you the knowledge related to LED screens from a Chinese supplier’s perspective.

If you want to distribute or explore your local LED screen market, please ask me any questions.

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