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Thin Film Encapsulation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • January 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 5239544
Thin Film Encapsulation (TFE) is an emerging and evolving form of technology for organic light-emitting diodes (OLED) and is expected to grow at a CAGR of 14.8% during the forecast period 2021-2026 . TFE has the strength to replace the front glass layer with a thin-film barrier present in an OLED device. OLED material has a very susceptive nature to the degeneration when exposed to different environmental factors such as water and air. Successful TFE has the commitment to enable flexible OLED, decrease cost by replacing the glass as the substrate material ending in a lighter and thinner display. Technological innovations, growing investments, and IP protections have significantly affected the TFE market over the ages. Decreased device thickness, cheap cost, and weight in combination with enhanced flexibility and robustness are the significant benefits offered by TFE technology. The latest technologies such as atomic layer deposition (ALD) and inkjet printing are anticipated to impact the market during the estimated period. The price of the raw material license, cost of equipment, and optimization in several processes have further driven the TFE market.
  • Progress in the requirement for the thin-film barrier in numerous flexible devices, growth in the adoption rate of flexible OLED displays for smart devices and growth capital investments in OLED technology have been pushing the global thin-film encapsulation (TFE) market. On the other hand, lacking technological acquaintance and augmentation of flexible glass technology might hinder the overall market globally. The demand for flexible OLED lightings is supposed to expand, as the adoption of OLED lightings in automotive applications is likely to grow rapidly during the forecast period.
  • In the past 3 years, many automotive companies have colluded with lighting companies to produce OLED lighting solutions for cars. OLED lighting solutions can give better efficiency than traditional incandescent lighting, they also give opportunities to put a light in new and seldom startling places that are only beginning to surface in the quickly growing field, which could further boost the Thin Film Encapsulation market.
  • APAC deems for the biggest share of the thin-film encapsulation market for materials. Main display panel and brand product companies are based in China, Taiwan, Japan, South Korea, and Hong Kong. Moreover, the need for thin-film encapsulation materials from China is anticipated to increase quickly as numerous Chinese players are planning to build facilities to manufacture flexible OLED panels.

Key Market Trends

Flexible OLED Display Segment is Poised to Register the Highest Growth Rate in the Thin Film Encapsulation Market
  • The Flexible organic light-emitting diode (OLED) will be the most advanced display technology to buyers and industries in the near future. Thin-film encapsulation (TFE) technology is the most utmost demanding necessity to prevent water and oxygen penetration into flexible OLED devices. As a polymer substrate does not offer the identical barrier performance as glass, the TFE development on both the bottom and top side of the device layers for adequate lifetimes.
  • With excellent display quality such as perfect video capability, vivid full color, and thin form factor, AMOLED (active-matrix organic light-emitting diode) is making its progress into OLED TV (television), mobile devices and smartwatches are poised to access into consumer markets in the near future. AMOLED on flexible substrates would be considered as the ultimate display because of its ruggedness and versatility. Though, there are a number of hurdles to realizing flexible AMOLED, particularly on plastic substrates. Among these difficulties, TFE is the most demanding task because OLED demands the greatest degree of protection from moisture and oxygen penetration in electronic gadgets.
  • OLED technologies are persistently meeting the demands of customers and markets. The success of flexible OLED applications still needs further advancements in the technology of TFE. Numerous barrier architectures are possible and each technology has distinctive materials, processing, and barrier characteristics. The principal benefit of this approach is that it can obtain low WVTR (water vapor transmission rate) with fewer layers because ALD/MLD layers have much more satisfying film integrity, but the disadvantage has been the low throughput and restraint in the scalability of the MLD/ALD process.
  • Therefore, a greater knowledge of the synergistic effect of polymer/inorganic multilayers (Vitex Technology) may lead to enhanced barrier performance from simplistic structures but there are still problems to make practically the TFE on large area/flexible OLED application. Hence, a novel ALD and/or MLD system (Synos Technology) will give a big breakthrough and opportunity of TFE in the OLED industry.

Asia-Pacific Expected to Witness the Highest Growth Rate
  • Asia-Pacific accounted for the most notable market share in the thin-film encapsulation market. The growth of the regional market can be associated with the progression of electronics and semiconductor industries, mainly in China. The deep-rooted electronics manufacturing bases in South Korea, China, and Taiwan led to an enhanced demand for thin film encapsulation technologies.
  • Moreover, in a region, which has a bunch restrictive regulatory policies on FDI across the industries, according to the Economic Outlook for Southeast Asia, China, and India 2018: Fostering Growth through Digitalisation report by OECD 2018, the electronics-manufacturing area is more open to FDI, compared with the national averages for all the sectors merged. Government policies have supported the establishment of the dynamic electronics industry in the area.
  • The increase in industrialization and an addition in the number of end-user industries in developing economies, such as China and India, have offered various untapped opportunities. Moreover, China, Indonesia, South Korea, Japan, and Taiwan have led the thin-film encapsulation market growth, due to growing solar panel manufacturing and installations.
  • Additionally, the growing demand for electronic components in the automotive industry is expected to increase the demand for semiconductors in the region, which in turn directly affects the growth of the market studied, in an accurate manner.

Competitive Landscape

Thin Film Encapsulation Market is moderately competitive and consists of several major players. In terms of market share, some of the major players currently dominate the market. The end-users demand is driven by safety and regulatory needs and the companies operating in the market are leveraging on strategic collaborative initiatives, to offer specialized solutions, to increase their market share and increase their profitability. The companies operating in the market are also into mergers and acquisitions of start-ups that help in improving the served market portfolio on Thin Film Encapsulation technology to strengthen their product capabilities.
  • March 2019 - Beneq launched new ALD coatings for anti-corrosion application as conventional metal oxide is not thin enough to protect against fluorine. The company is offering a single layer or a multilayer or mixed material specifically for improving anti-corrosive properties.
  • June 2018 - To accelerate chip performance, Applied Materials, Inc. announced a major breakthrough within material engineering in this big data & AI era. This will enable the company to increase performance by up to 15%. Applied Material’s integrated material solution combines CVD, PVD & ALD on the endura platform which will enable the customer to speed the adoption of cobalt. This will also accelerate the growth of the company in big data and AI era. Such upgradation in this high growth market will help the company to sustain in the upcoming era of artificial intelligence.

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increase in Demand for Microelectronics and Consumer Electronics Products
4.3.2 Increased Adoption of Flexible OLED Displays for Smartphones and Smart Wearables
4.4 Market Restraints
4.4.1 High Capital Investment in R&D for Developing Upgraded Products
4.4.2 Augmented Growth of Flexible Glass
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5.1 By Technology
5.1.1 Plasma-enhanced chemical vapor deposition (PECVD)
5.1.2 Atomic layer deposition (ALD)
5.1.3 Inkjet Printing
5.1.4 Vacuum Thermal Evaporation (Vte)
5.1.5 Other Technologies
5.2 By Application
5.2.1 Flexible OLED Display
5.2.2 Thin-Film Photovoltaics
5.2.3 Flexible OLED Lighting
5.2.4 Other Applications
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia Pacific
5.3.4 Rest of the World
6.1 Company Profiles
6.1.1 Samsung SDI
6.1.2 LG Chem
6.1.3 Universal Display Corp. (UDC)
6.1.4 Applied Materials Inc.
6.1.5 Veeco Instruments Inc.
6.1.6 3M
6.1.7 Toray Industries Inc.
6.1.8 Kateeva
6.1.9 BASF (Rolic) AG
6.1.10 Meyer Burger Technology Limited
6.1.11 AMS Technologies
6.1.12 Bystronic Glass
6.1.13 Aixtron SE
6.1.14 Angstrom Engineering Inc.
6.1.15 Lotus Applied Technology
6.1.16 Beneq Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Samsung SDI
  • LG Chem
  • Universal Display Corp. (UDC)
  • Applied Materials Inc.
  • Veeco Instruments Inc.
  • 3M
  • Toray Industries Inc.
  • Kateeva
  • BASF (Rolic) AG
  • Meyer Burger Technology Limited
  • AMS Technologies
  • Bystronic Glass
  • Aixtron SE
  • Angstrom Engineering Inc.
  • Lotus Applied Technology
  • Beneq Inc.