Overview
The global OLED Technology market is estimated to grow at a CAGR of 10.44% during the forecast period 2021-2026 and reach $50.45bn by 2026, from around $27.55 billion in 2020. Rapid adoption of the OLED in the smartphones is analysed to be the major driving factor for the OLED market. Adding to this, the rising investments and the expansions in the OLED technologies with the growing demand from automotive sector is contributing to the market growth rate.
Report Coverage
The report: “OLED Technology Market - Forecast (2021-2026)” covers an in-depth analysis of the following segments of the OLED Technology market.
By Product Type: OLED Display, OLED Lighting, OLED Automotive
By Panel Type: Rigid & Flexible
By Panel Size: Upto 6 inches, 6-20 inches, 20-50 inches, >50 inches
By Technology: AMOLED and PMOLED
By Screen size: Below 100 inch, 100-150 inch, Above 150 inch
By Application: Display & Lighting, Automotive & Exterior OLEDs
By Geography: North America, South America, Europe, APAC, and RoW
Key Takeaways
- Display and lighting dominated the OLED Technology market with highest share in 2020, owning to widespread applications in the industry. Automotive sector is analysed to grow at highest CAGR during the forecast period 2021-2026.
- The significant usage of OLED technology in the smartphones, television is set to boost the demand for OLED market.
- APAC dominated the OLED Technology market with a value share of approximately 44% in 2020, owning to significant adoption of smartphones in countries such as China, India, Taiwan and Japan.
By Panel Type- Segment Analysis
The growing demand of rigid panel for tablets and laptops owing to its growing popularity among consumers as they are comparatively cheaper than the flexible panel has compelled manufacturers to come-up with a broad range of products which in turn is boosting its market growth. In 2019, Samsung Display shipped more than 4 million rigid panels for laptops and tablets. Among, these 3 million were fitted into Samsung Electronics Galaxy Tab tablet. In addition, the 4 million figure only accounts for 1.3% of the entire portable PC shipment volume for 2019, but it is expected to show further growth beginning in 2021. Hence, the growing demand of rigid panels for various application coupled with the rising shipment of rigid panels for laptops and tablets is set to drive its market in the upcoming years.
By Application- Segment Analysis
Display and lighting is the major shareholder of the market as of 2020. The high profitability of OLED billboards is due to the incredible exposure that these large-scale OLED billboards provide, with many advertisers opting for this format to promote their goods or services. The vast majority of OLED displays are OLED billboards, which are planned to run 24 hours a day thanks to a system that ensures that weather conditions do not impact their visibility. This means that the screen will last a long time, regardless of the weather. To withstand any weather and temperature conditions, OLED signs for ads or "digital billboards" must be rugged, bright, and built-in. Pixel pitch, OLED form (SMD or DIP), and dimension all depend on the location as well as practical and financial requirements, but product quality is the most important aspect.
Geography - Segment Analysis
APAC dominated the OLED Technology market with a value share of approximately 44% in 2020, owning to significant adoption of smartphones in countries such as China, India, Taiwan and Japan. The growing expansions in the manufacturing sectors in display units is set to further escalate the market growth rate. In March 2021, Xiaomi announced to invest $13.36M in expanding its manufacturing facility in India. In May 2021, LG Display announced to expand the production capacity in China. In October 2020, Merck announced an investment of $24.39M expansion of its OLED manufacturing capacity at its sites in Korea, and Shanghai, China.
Drivers - OLED Technology market
Growing investments in OLED technology and manufacturing facilities
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
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.
Challenges - OLED Technology market
Requirement of huge investment and related manufacturing complexity
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 analyse 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.
Market Landscape
Partnerships, product launch and acquisitions are key strategies adopted by players in the OLED Technology market. OLED Technology top companies include Major players in the OLED materials market are Dupont, Idemitsu Kosan, Lg Chem, Merck Kgaa, Novaled Gmbh and others.
Acquisitions/Product Launches/Partnerships
- In January 2021, Samsung Display Company announced a new low-power OLED display for smartphones that reduces power consumption up to 16 percent.
- In December 2019, Chinese government announced to add subsidies up to $285million for display technologies including micro/mini LED and OLED with an aim to push innovative display technology development.
Methodology
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