Updated date - Dec 6, 2019

[208 Pages Report] MarketsandMarkets forecasts the OLED market size to grow from USD 20.9 billion in 2017 to USD 48.8 billion by 2023, at a compound annual growth rate (CAGR) of 15.2% during the forecast period. The major factors that are expected to be driving the OLED market are rapid adoption of OLED displays in smart phones and positive user experience of OLED devices. The objective of the report is to define, describe, and forecast the OLED market size based on application, panel type & size, technology & material, vertical and region.

OLED Market by application, the vehicle & public transport segment from OLED display market is expected to grow at the highest growth rate during the forecast period

OLED display panel manufacturers are expected to witness various opportunities in automotive vehicles and public transports. Vehicles such as cars and motorbikes use small to medium-sized and medium-sized to large display panels. These panels could be used for instrument clusters, dashboard displays, central control units, entertainment systems, navigation systems, security systems, and other systems that display information. Display devices are used in public transport vehicles, including train, planes, and ships, for information display and advertising purposes. These vehicles usually use medium-sized to large display panels.

OLED Market by vertical, the commercial vertical segment from the OLED lighting market holds the largest share of the OLED market

OLED lightings are used in commercial spaces such as offices, retail shops, malls, hospitals, and restaurants, among others. Reduction of energy consumption has become a major objective for building owners, governments, utilities, and other stakeholders. Replacement of existing lights with solid-state lighting or other energy-efficient lighting is one of the ways to reduce the massive pool of energy use. According to the findings of the US Energy Information Administration (EIA), the lighting control solutions based on different technologies have proven to reduce lighting energy consumption in commercial buildings by up to 70%. Factors such as cost, complexity, and applicability have restricted the use of these solutions in the past. However, new wireless technologies are providing ways to expand the capabilities of lighting control solutions and offer them to a wider set of customers. Several awareness programs have been conducted worldwide to spread awareness regarding the need to save energy in commercial buildings.

OLED Market in APAC to account for the largest market size during the forecast period.

OLED market APAC is one of the largest markets for display devices. The region accounted for the largest share of the OLED market in 2016, and the same trend is expected to continue during the forecast period. APAC is a major manufacturing hub for display panels and brand products.

Display panel manufacturers such as Samsung, LG, AU Optronics, Japan Display, and Sharp, among others are based in APAC and have their major manufacturing facilities in different countries in APAC. Several smartphone and tablet vendors, TV and signage display manufacturers, NTE device vendors, and other vendors have their headquarters in APAC.

Market Dynamics : OLED Market

Driver: Growing investments in OLED technology and manufacturing facilities

OLED is a new and exciting technology providing thin, efficient, and bright displays and lighting. 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. For instance, in February 2015, LG Display announced its plan to invest USD 915 million for the OLED TV production capacity expansion. This expansion enables LG Display to produce 0.6 and 1.5 million panels in 2015 and 2016, respectively. Companies such as BOE Technology (China), Tianma Microelectronics (China), Truly Semiconductors (China), AU Optronics (Taiwan), EverDisplay Optronics (China), GoVisionox Optoelectronics (China), Hon Hai Precision Industry (Taiwan), Innolux Corporation (Taiwan), Sharp Corporation (Japan), and Japan Display (Japan) have already announced the OLED production capabilities with partial production in 2016 and mass production by 2018.

Restraint: Low market acceptance of OLED lighting fixtures compared with LED fixtures

The market size of LED lighting, in terms of value, has increased over the last few years due to the consistent decrease in their prices. The LED lighting market (MnM repository) was valued at USD 36.75 billion in 2015 and is expected to reach USD 92.40 billion by 2022, at a CAGR of 13.7% between 2016 and 2022.

High fixture costs, low efficacy, and short shelf life are some of the major drawbacks of OLED lightings. For instance, the cost of OLED fixtures was USD 200 per kilolumen (klm) in 2016 and prices fall to approximately USD 100�150/klm in large volumes; however, it is much more than the warm-white LED package that cost USD 2/klm in 2015. The typical performance of current OLEDs includes roughly 60 lm/W efficacies, 50,000-hour shelf life, and excellent color rendering, with CRI greater than 90 and R9 greater than 50. While efficacy is expected to improve, the current performance of OLEDs is already suitable for most applications.

Opportunity: 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. Leading smartphone models or series utilizing the AMOLED displays are Samsung Galaxy series, Huawei P9 Plus, Oppo R9 Plus, Vivo X7 Plus, Xiaomi Redmi 3S, Lenovo Phab2 Pro, and One Plus 3.

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. Facebook invested USD 2 billion in Oculus, Google invested USD 542 million in Magic Leap, and Microsoft developed its own HoloLens. VR mainstream products, including Oculus Rift, Sony PlayStation VR, HTC Vive, and Gear VR adopted AMOLED displays.

Challenge: Requirement of huge investment and related manufacturing complexity

The latest LTPS-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. LG Display, Japan Display, and AU Optronics 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. Samsung, having commercialized the display panel market, is the leading with more than USD 13 billion revenues from OLED display panels. 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. While considering the emerging players such as AU Optronics (Taiwan) and Japan Display (Japan), it will not be easy for these players 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.

Scope of the Report

Report Metric Details Report Name OLED Market Base year considered 2016 Forecast period 2017�2023 Forecast units Billion (USD) Segments covered Application, Panel Type & Size, Technology & Material, Vertical and Region Geographies covered North America, Europe, Asia Pacific, RoW Companies covered Samsung Electronics (South Korea), LG Display (South Korea), Universal Display Corp. (US), AU Optronics (Taiwan), BOE Technology (China), Tianma Microelectronics (China), OSRAM (Germany), Acuity Brands (US), Konica Minolta (Japan), OLEDWorks (US), Lumiotec (Japan), Royole Corporation (US), Kopin Corporation (US), Pixelligent Technologies (US), Luminescence (Taiwan).

The research report categorizes the OLED to forecast the revenues and analyze the trends in each of the following sub-segments:

OLED Market, By Application

Smartphone

Television

Tablet

Smartwatch

Near-To-Eye (NTE) Device

Vehicle & Public Transport

Laptops & PC monitors

Signage/Large Format Display

Others

OLED Market, By Display Panel Type

Rigid

Flexible

Others (Transparent Displays and Micro-Displays)

OLED Market, By Technology

AMOLED

PMOLED

AMOLED Market, By Materials

FMM RGB

WOLED

OLED Market, By Display Panel Size

Upto 6 Inches

6�20 Inches

20�50 Inches

More than 50 Inches

OLED Lighting Market, By Applications

General Lighting

Automotive Lighting

OLED Lighting Market, By Panel Type

Rigid

Flexible

OLED Lighting Market, By Vertical

Commercial

Sports & Entertainment

Automotive

Residential

Industrial

OLED Market, By Region

The Americas

Europe

Asia Pacific (APAC)

RoW

Key Market Players

Samsung Electronics (South Korea), LG Display (South Korea), Universal Display Corp. (US), AU Optronics (Taiwan), BOE Technology (China), Tianma Microelectronics (China), OSRAM (Germany), Acuity Brands (US), Konica Minolta (Japan), OLEDWorks (US), Lumiotec (Japan), Royole Corporation (US), Kopin Corporation (US), Pixelligent Technologies (US), Luminescence (Taiwan) are the key market players in the OLED market .

Safran (France) held the leading position in the global MFA market, in 2016. The company has entered into several partnerships with other companies for the development of new technologies. For instance, in February 2017, the company entered into a partnership with Tessera Holding Corporation, through its wholly owned subsidiary FotoNation Ltd., to deliver advanced iris recognition solutions for mobile devices in India. Safran has established seven values on which the identity and image of the company are based on amongst its stakeholders. The values are focused on customers, compliance with commitments in accordance with the ethical guidelines, innovation, responsiveness, teamwork, people development, and corporate citizenship.

Recent Developments

In August 2017, Samsung adopted the Y-OCTA (Youm On-Cell Touch AMOLED) touch technology to be used in both versions of its Galaxy S9 (5.77" and 7.22") to be launched by 2018. The touch sensor in Y-OCTA displays is deposited directly on the encapsulation (TFE) layer, which is better than the add-on (or film-type) touch used in older flexible AMOLEDs generations.

In September 2017, LG launched V30 smartphone with P-OLED flexible display to compete with Samsung�s flagship mobiles, which operate on flexible OLED display panels.

In May 2017, Universal Display Corporation announced that its wholly-owned subsidiary, Adesis purchased its new facility in Delaware (US) to expand its custom organic synthesis, research & development, and specialty manufacturing capabilities. The new development facility is a 47,500-square foot building in the Southgate industrial center.

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.

In June 2017, BOE developed a 7.56-inch foldable touch-enabled OLED tablet-phone device that features an QXGA (2048x1536) resolution, a bending radius of 5 mm, and a contrast rate of over 70,000:1.

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the OLED market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst