Optical Films Global Market Report 2024

The optical films market size has grown strongly in recent years. It will grow from $22.48 billion in 2023 to $24.41 billion in 2024 at a compound annual growth rate (CAGR) of 8.6%. The growth observed during the historic period can be attributed to several factors, including increased demand in consumer electronics, the expansion of automotive displays, a rise in energy efficiency initiatives, and a prevailing trend towards designing thinner and lighter devices. These factors collectively contributed to the overall growth in the adoption and application of optical films during this period.

The optical films market size is expected to see strong growth in the next few years. It will grow to $33.1 billion in 2028 at a compound annual growth rate (CAGR) of 7.9%. The anticipated growth in the forecast period can be attributed to the emergence of foldable and flexible displays, heightened integration of optical films in wearable devices, and an increasing focus on environmental sustainability considerations. Key trends in this period include the expanded application of optical films in automotive displays, a market emphasis on ultra-thin and lightweight film solutions, the integration of blue light blocking films for eye protection, advancements in anti-scratch and durable coatings, and collaborative efforts to develop innovative optical film solutions. These trends collectively contribute to the projected growth and evolution of the optical films market in the forecast period.

The projected growth in the optical films market is expected to be driven by the increasing penetration of the Internet of Things (IoT). IoT represents a network of interconnected physical devices, objects, and systems equipped with sensors, software, and networking capabilities for data gathering and sharing. Devices within the IoT ecosystem, including smart home devices, wearables, and industrial sensors, heavily rely on displays and visual interfaces. Optical films play a crucial role in enhancing the brightness, clarity, and visibility of these displays. As the use of IoT devices continues to expand, the demand for high-quality displays is set to increase, thereby driving the demand for optical films. According to a report by the Global Mobile Supplier Association, cellular IoT connections are anticipated to have nearly 60% broadband IoT connections by the end of 2028, with global IoT connections expected to grow from 13.2 billion in 2022 to 34.7 billion by 2028, reflecting an 18% growth rate.

The growing demand for electronic devices is poised to fuel the growth of the optical film market. Electronic devices, powered by electronic circuits, use optical films to enhance display performance by improving brightness, clarity, and visibility. Films such as anti-glare or anti-reflective films are applied to device screens to minimize reflections, reduce glare, and optimize viewing angles. This enhances the user experience by providing clearer and more readable displays, making electronic devices more usable in various lighting conditions. As exemplified by LG's annual financial report for 2022, which recorded the company's highest-ever revenue of over $60 billion, up 12.9% from 2021, the increasing demand for electronic devices is a significant driver for the optical film market. With a revenue of $22.5 billion in 2022, LG demonstrated the continued growth and demand in the electronic devices market.

Product innovation emerges as a significant trend in the optical film market, with companies actively pursuing the development of new products to maintain their positions. For instance, Folex GmbH, a Switzerland-based plastics manufacturing company, introduced the Go-Ha film in May 2023. This specialized film is designed to enhance the readability of high-resolution screens by reducing glare. It features an anti-reflective layer on its front surface, ensuring exceptional transparency while being resistant to scratches. The Go-Ha film not only offers improved UV stability but also boasts high chemical resistance, making it suitable for demanding environments. Its versatility, printability, and compatibility with a wide range of applications, combined with anti-glare properties and remarkable transparency, address glare-related issues and enhance visual clarity in displays.

Major players in the optical film market are adopting a strategic partnership approach to improve light output efficiency in OLED mobile phones. In June 2021, Kateeva, an advanced display company based in California, partnered with Pixelligent Technologies LLC, a US-based composite material and chemical company. The collaboration aims to enhance light output efficiency in OLED displays of mobile phones by optimizing an inkjet-printed planarization layer over microlens arrays with optical films. This strategic partnership leverages the strengths and resources of both companies to achieve mutual benefits and success, focusing on increasing the refractive index of materials and simplifying processes for emerging technologies in consumer electronics.

In May 2023, IDEX Corporation, a US-based optics systems manufacturer, acquired Iridian Spectral Technologies Ltd. for an undisclosed amount. This acquisition expands IDEX Corporation's optical technology offerings, providing access to new markets, strengthening its position in core markets, and fostering collaboration within the organization. Iridian Spectral Technologies Ltd., a Canadian optical product company, offers spectrum solutions through its unique thin film technology, including various telecommunication filters and customized thin film filters. The acquisition enhances IDEX Corporation's capabilities in the optical film market.

Major companies operating in the optical films market report are Saint-Gobain S.A., LG Chem Ltd., Honeywell International Inc., 3M Company, Sumitomo Chemical Co. Ltd., Fujifilm Corporation, Toray Industries Inc., Covestro AG, Samsung SDI Co. Ltd., PPG Industries Inc., Shin-Etsu Chemical Co. Ltd., E. I. du Pont de Nemours and Company, DuPont, Nitto Denko Corporation, Teijin Limited, UBE Industries Ltd., Zeon Corporation, Toyobo Co. Ltd., Eastman Kodak Company, BenQ Materials Corporation, Mitsubishi Polyester Film Inc., Sumika Chemical Analysis Service Ltd., American Polarizers Inc., Pronat Industries Ltd., JX Nippon ANCI Inc., Light Polymers Inc., Hyosung Chemical Co. Ltd., Kolon Industries Inc., MNTech Co. Ltd., Opticote Inc.

Asia-Pacific was the largest region in the optical films market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the optical films market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the optical films market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of optical films include polarizing film, backlight film, and others. Polarizing film, for example, consists of aligned molecules capable of filtering light waves based on their polarization orientation. These films serve multiple functions, including display surface films, brightness enhancement films, and light control or privacy films. Applications of polarizing films span various electronic devices such as automotive displays, televisions, desktops and laptops, smartphones, tablets, as well as signage and advertising display boards.

The optical films market research report is one of a series of new reports that provides optical films market statistics, including optical films industry global market size, regional shares, competitors with an optical films market share, detailed optical films market segments, market trends and opportunities, and any further data you may need to thrive in the optical films industry. This optical film market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The optical films market consists of sales of reflection film, filter film, antireflection film, nano-optical film, spectroscopic film, and others. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.