What Are the Differences Between LCD and LED Displays?

October 15, 2020

A lot of confusion surrounds the terms “LED display” and “LCD display”. Many people aren’t sure what the differences between a LCD and LED are and trying a simple Google search brings back conflicting information. In this article, we’ll discuss the key differences between the two display technologies and their unique advantages in digital signage applications.

What do the acronyms LED and LCD stand for?

LED stands for “light-emitting diode” and LCD stands for “liquid crystal display” display. Both technologies are used in digital signage, however their mechanics are quite different, especially when it comes to their light source.

LED Displays

LED display close-up image

Light-Emitting Diodes (or LEDs) are electrical components that emit light when current flows through them, very similar to a common light bulb. You’ve probably seen these tiny lights around your home, in modern Christmas light strands, night lights, flashlights, lightbulbs, and more. 


LED displays are a self-emitting display technology made up of a matrix of red, blue, and green LEDs forming the individual pixel elements. Standard LED displays have hundreds to thousands of LED pixels and project light directly to the viewer. These are often called “Direct View LEDs”, because there is no LCD layer at all in the display. MicroLED is one of the newest forms of these displays, which uses millions of microscopic LEDs producing a much higher-resolution image. However, they are still too expensive to be adopted by many applications. All types of LED displays provide excellent brightness and visibility both indoors and outdoors, but can also be heavy, bulky and require more complex installation. They tend to be expensive upfront but offer some cost savings over time since the light diodes that they rely on require little power. However, LEDs are at a higher risk for poor image retention or what many people refer to as “screen burn”.


Sometimes, LEDs are also used to form a backlight panel which is used to illuminate an LCD. These LED-backlit LCDs are frequently misnamed “LED displays”, however they are not true LED displays. True LED displays do not have an LCD layer. 

LCD Displays

LCD pixels close up

Liquid crystal displays (or LCDs) are considered a “non-emissive display” technology which means they don’t produce their own light source. The liquid crystals are responsible for the colors and images that the viewer sees but they need something else to provide the light for them. Think about placing a colored piece of paper over a flashlight, how the white light will become somewhat filtered to the color of the paper. The paper does have color but is not generating the light you see. Similarly, LCDs require an external light source such as a backlight, reflective layer, front light, or combination. Within the display itself, polarizers and liquid crystal layers work together as light shutters to control the transmission of light from the back layer through the colored pixels of the display, thus creating an image for the viewer.

LCD Illumination Methods: Transmissive, Transflective, and Reflective

LCD displays can be illuminated via three different methods:


  1. Transmissive LCD displays are the most common type of LCD. A backlight is installed behind the liquid crystal layer to illuminate the display. Transmissive LCDs are excellent for indoor applications, but their backlights can be overpowered by sunlight outdoors making them dim and difficult to read. To compensate, transmissive LCDs can be fitted with high-brightness backlights to increase their sunlight visibility. 
  2. Transflective LCD displays use both a backlight and reflective layers to illuminate the display making them visible in both bright and dim lighting conditions. Their complex structure is more costly to build than a transmissive display, which is why they are not as commonly used.
  3. Reflective LCD displays have no backlight. Instead, they have a mirrored layer installed behind the liquid crystal layer which reflects ambient light back to the viewer. The brighter the ambient light, the brighter the display appears. A front light can be added to make the reflective LCD readable in low lighting conditions such as in the evening or indoors. Because they don’t have a backlight, reflective LCDs are ultra-thin, lightweight, long lasting, and inexpensive to operate.

Which Option is Best for You?

The below table helps to simplify the key variables discussed above. It’s important to consider these factors so you are sure to get the best long-term solution for your business.

Display Type Indoor Visibility Sunlight Visibility Up-Front Cost Cost to Operate Installation Bulkiness
Transmissive LCDs Good Poor $ $$$ Easy Medium
High-Brightness Transmissive LCDs Good Good $$ $$$$ Easy Medium
Transflective LCD Good Good $$$ $$ Easy Bulky
Reflective LCD Needs Front-Light Good $$$ $ Easy Ultra-Thin & Lightweight
LED Display (Direct View) Good Good $ $$$ Difficult Bulky

If you’re looking for an outdoor display solution, reflective LCD technology is a great choice. It offers great sunlight visibility while costing very little to operate. Because they don’t have a backlight, reflective LCDs use up to 95% less power than high-brightness LCDs. This significantly reduces your operating cost and energy consumption over time compared to other display technologies. Due to the absence of a backlight, reflective LCDs also emit very little blue light (a known body cycle disruptor) and last longer than other display technologies due to their lower electrical demand. This means you’ll end up spending less money over time and get better overall picture quality. Sun Vision Display offers reflective LCD panels for many outdoor applications in a 32” diagonal size, with 43" and 55” sizes coming soon.


If you’re interested in learning more about outdoor display solutions or the difference between a LCD and LED, Sun Vision Display is here to help. Give us a call at 224-268-3343 or request a quote today.

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