OLED Materials Market - Forecast (2022 - 2027)

 

The report: “OLED Materials Market-Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of OLED materials industry. 

 

By Type: Substrates, Encapsulation, Anode, Hole Injection Layer (HIL), Hole Transport Layer (HTL), Emissive Layer (EML), Cathode, and Others

By Application: Display (Television and Monitors, Smartphones, Electronic Notebooks), Lighting, and Others

By End User: Building and Construction (Residential (Independent Homes, RoW Homes, Large Apartment Buildings) Commercial (Hospital, School, Airport, Others)), Automotive, Electrical and Electronics, and Others.

By Geography: North America, South America, Europe, APAC, and RoW.  

 

• Asia-Pacific dominates the OLED materials market owing to increasing demand from electrical and electronics sector.
• Rise in the demand of smartphones will drive the market of OLED materials in the forecast period.
• Lack of investment in OLED materials market will hinder its growth in the forecast period.

 

Cathode Segment held the largest share in the OLED materials market in 2019. The architecture of OLED display comprises several layers in which cathode layer play vital role in OMLED architecture. Cathode layer is responsible for injection of electrons when current flows through the device. Durability, compatibility, efficient and fast charging are key criterion leading to significant developments in cathode industry. Increasing use of lithium ion batteries in portable electronic accessories and equipment such as laptops, tablets, mobile phones, digital camera and others are driving growth of batteries in respective applications ultimately resulting in increasing demand for cathode. Entry of local and global players into the energy storage system market are expected to support significant growth opportunities for cathode suppliers in the market. Not only consumer electronics but use of batteries in automotive industry for starting, lighting and ignition application is consistently growing. In addition, development of hybrid and electric engines in automotive, marine and locomotive application is further adding to the use of batteries in transportation sector. This trend is significantly driving the consumption of cathode across the globe. Use of batteries in domestic, commercial and industrial application as power back up and for maintaining uninterrupted power supply in power grids and telecom towers is another application of batteries. With modernization in power sector coupled with urbanization and smart cities development, demand for batteries and cathode materials is expected to witness consistent increase in the forecast period.

 

Smartphones Segment held the largest share in the OLED materials market in 2019. The OLED materials gives exceptional display compared to other display systems. Due to its robust design, OLED materials are used in smartphones.  Increased consumer spending across regions has driven the sales of Smartphone in the forecast period. The global smartphone sector is expected to gain significant demand owing to the growing demand for mobile internet services and applications along with real-time need for information exchange. Increasing disposable income worldwide and particularly for Asia Pacific region is expected to drive the market.  Smartphones companies have been increasing their revenues by launching new variant phones with increased frequency. However, 5G handsets and foldable phones are likely to provide them with new opportunities. Consumer Technology Association (CTA) forecasts that the 5G-enabled devices are likely to reach 2.1 million units to generate USD 1.9 billion in revenue, by 2019, the year which marks the launch of the first 5G smartphones. Continuous technology advancements in various operating systems used such as Windows, Android, Symbian, and IOS are expected to fuel smartphone demand over the forecast period. 

 

Construction sector has been the primary market for OLED materials in 2019 growing at CAGR of 25%. The growth of OLED materials can be taken as directly proportional to the growth of construction industry. OLED lightings are used in commercial spaces such as offices, retail shops, malls, hospitals, and restaurants and others. Reduction of energy consumption has become a major objective for building owners, governments, utilities, and other stakeholders. Replacement of existing lights with OLED lightings is one of the ways to reduce the massive pool of energy use.  OLED materials are most efficient way of illumination and lighting in buildings, with an estimated energy efficiency of 80%-90% when compared to traditional lighting and conventional light bulbs. This means that about 80% of the electrical energy is converted to light, while a 20% is lost and converted into other forms of energy such as heat. By 2020, construction output is estimated to grow by 70% to $12.7 trillion and will account for 14.6% of the world output with some of the larger emerging markets such as China, India, Russia, Brazil and Poland driving growth, along with U.S. Global GDP growth of 3.5% and 3.6% is expected in 2017 and 2018 respectively however the meteoric growth that outpaces global GDP will be concentrated in countries like China, India and U.S. India will overtake Japan as the third-largest construction market with annual growth averaging 7.4% annually in construction. 

 

APAC dominates the OLED materials market with a share of 41% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in the construction and automotive sector. OLED materials are surface lights and have several lighting applications in cars indicators, tail lamps and interior light. It is expected that the amount of OLED materials used in the production of automobiles will double in the next 15 years. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) globally in the year 2019 was 91,786,861 units compare to 96,869,020 units in 2018 while in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017. The increase in the global automobile production is a major factor leading to the growth of OLED materials in terms of volume across the globe. 

 

The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business. The current epidemic outbreak has deeply influenced consumers' daily life and in addition to the impact on construction and automotive sector.  South Korea, Italy and Japan are the most affected among the major industrialized economies. Consequently, 80 percent of automotive and related companies report that Coronavirus will have a direct impact on their 2020 revenues. 78 percent of companies do not have enough staff to run a full production line. More than 80 percent of the world’s auto supply chain is connected to China. In January 2020 China’s car sales plunged by 18 percent. The China Passenger Car Association (CPCA) considers that the first two-month sales could decline by 40 percent or more compared to the same period in 2019. Production shortfalls resulting from supply chain disruptions in China will impact global automakers.

 

 

• Growing investments in OLED technology and manufacturing facilities
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OLED is a new and exciting technology providing thin, efficient, and bright displays and lighting. OLED is an emerging display technology that is fast becoming the mainstream display technology in many markets, as OLED enables display panels that offer the best image quality and free design as they can be made flexible and transparent. Many industry experts believe OLEDs are set to replace existing technologies in display and lighting industries. In a view of this, many companies started investing heavily in R&D related to OLED. There are several players involved in the value chain of the market, these include companies researching on OLEDs and acquire important patents relating to OLED materials. Chemical companies involved in the OLED material production and OLED gadget companies or resellers that use OLEDs in their products such as mobile phones, TVs, and other consumer electronic products. Companies has been developing a foldable OLED device for a long time, which may dramatically change the mobile device market as it could enable smartphone to turn into tablets or phones that can be folded into smaller devices.

 

• Increasing number of applications and adoption in AR/ VR headsets
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OLED displays are lighter, thinner, more flexible, and emit brighter colors compared to displays based on existing technologies; therefore, their applications in various sectors have increased significantly in the last few years. Mobile phones, TVs, wearable devices, and other consumer electronic products are among the major adoption areas of OLED technology. The demand for AMOLED displays in VR/AR applications is expected to increase as AMOLED is the most appropriate display for AR/VR. This is because of significant improvements offered by AMOLED displays in reducing the response time and resolving the time latency problem as compared with other display technologies.  This factor will drive the growth of the market of OLED materials in the forecast period.

 

 

• Requirement of huge investment and related manufacturing complexity
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The LCD production plants can be upgraded into OLED by implementing new equipment. However, for LCD companies converting to OLED require huge initial investment. Additionally, this investment requirement comes at a time when the TFT-LCD industry is in oversupply while producers are experiencing losses. Companies are expected to be the first lot to experience deep losses on initial investment, before recovering on OLED. These companies will require a few years to gain profits in OLED. There have been tremendous advancements in the manufacturing capability of OLED display panels in last 5 years However, manufacturing an AMOLED panel still requires more sophisticated technologies than an LCD display. Complex value chain and different suppliers also add significant complexity in the supply chain.  It will not be easy for the company to gain a competitive edge with OLED technology in terms of performance and prices in the display market that is already dominated by the TFT-LCD display. It is necessary for a panel maker to precisely analyze the market competition before investing a huge amount in establishing or upgrading a production plant. The companies have to come up with a sophisticated market entering strategy based on the differentiated technology of the AMOLED panel to successfully enter the display panel market.

 

• Lifetime of OLED Display is less than that of LCD display
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The OLED materials market has seen a significant growth in recent times. However, the material has certain drawbacks too. For instance, the lifetime of conventional OLED displays is around 5,000 hours, while that of normal LCD displays is around 10,000 hours. Also, the material is easily damaged by water, due to which an improved sealing process is necessary for the displays, thus, the above-mentioned factors are restraining the growth of the market in the forecast period.

 

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the OLED materials market. In 2019 the market of OLED materials market has been consolidated by the top five players accounting for xx% of the share. Major players in the OLED materials market are Dupont, Idemitsu Kosan, Lg Chem, Merck Kgaa, Novaled Gmbh and others.

 

• In May 2017, AU Optronics developed round AMOLED displays called true-circle displays, which have slimmer salient corners compared with AUO's current round OLED displays. This enables watch designers more flexibility with their designs. AUO demonstrated 2 such displays, with a diameter of 1.2-inch and 1.4-inch.