OLED DISPLAYS MARKET ANALYSIS

OLED displays are the self-lighting flat panel display, in which organic material is assembled between two conductors. These displays can emit bright light when an electric current is passed through them and thus they do not require any backlight for operation. Without a backlight, the thickness of OLEDs can be reduced significantly and made more power-efficient compared to LCD and LED displays. Furthermore, organic LED displays are gaining traction among consumers due to their better image quality and high pixel switching speed.

The global OLED displays market is estimated to be valued at US$ 26.4 million in 2021 and is expected to exhibit a CAGR of 10.4 % over the forecast period (2021-2028).

Recent Developments:

In January 2021, Samsung Display Co., Ltd. manufactures and distributes display products, developed a low-power consumption organic light-emitting diode (OLED) panel for smartphones.

In March 2021, Samsung Display Co., South Korea’s largest display maker, invested US$2.7 billion to build a new organic light-emitting diode (OLED) line for small-size panels used in smartphones and laptops.

In February 2021, Apple Inc has partnered with Taiwan Semiconductor Manufacturing Co to develop micro OLED displays for augmented reality (AR) devices.

Figure 1. Global OLED Displays Market Value (US$ Mn), by Region, 2020

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Asia Pacific held dominant position in the global OLED displays market in 2020, accounting for 71.6% share in terms of volume, followed by Europe and North America, respectively.

Market Dynamics- Drivers

Lucrative advantages offered by OLED technology is expected to drive growth of the global OLED displays market during the forecast period. OLED technology offers numerous advantages such as sharper image quality, crisp colors, better contrast ratio, and faster refresh rates. OLED displays are more compact and thinner and provide better energy management since they run on optimal power. Moreover, the enhanced view angle of OLED displays offers additional benefits to consumers.

Increasing application of OLED displays is expected to propel the global OLED displays market growth over the forecast period. OLED-based devices have started finding applications in various sectors worldwide. OLED technology is being adopted in media players, digital cameras, mobile phones, television, wearable devices, etc. Many major market players such as Sony, Samsung, and LG have launched a number of products with OLED display, in order to expand their product portfolio and gain a competitive edge in the market.

Market Opportunities

Reduction in OLED TV prices can present lucrative growth opportunities. The raw material used in the manufacturing of OLEDs is highly-priced. Larger display size means higher manufacturing costs. Currently, OLED TVs cost much higher compared to other competing technologies. Developments in OLED technology in upcoming years and reduction in the cost of raw material is expected to cut down the cost of OLED TVs, hence driving the market in the near future. Furthermore, emergence of new market players and mass production of OLED TVs will contribute to reducing the price of OLED TVs and will drive the market for OLED displays.

Constant competition between OLED and LCD technologies can provide major business opportunities.  OLED technology offers numerous advantages with energy efficiency an eco-friendliness being major attributes. OLED displays are expected to witness high penetration in the near future, owing to its biodegradability in developed countries. Moreover, OLED displays are expected to reduce electricity consumption due to rising demand and supply gap for electricity globally. Enhanced features such as wider range of colors increase the number of times per second a display redraws data, transparency, thinner dimension, better flexibility, and enhanced 3D adaptability. Increasing market share and popularity of active-matrix OLED (AMOLED) is also expected to drive the OLED display market globally.

Market Trends

According to Coherent Market Insights’ analysis, in 2011, OLED TVs accounted for 2% of the market share in the global OLED displays market. OLED TVs offer better viewing angles and better color gamut; however, the screen resolution offered is poor. OLED screens are faster, with the response time in the range of nanoseconds with no motion blur. Currently, the higher cost of OLED TVs is hindering the growth of this segment; however, reduction in cost in the near future is likely to contribute significantly to the global OLED displays market.

OLED displays find number of applications in industries such as consumer electronics, information technology, industrial automation, and the energy sector. With growing applications of OLEDs and flexible displays, OLEDs are expected to form the mainstream market in the coming years.

Figure 2. Global OLED Displays Market Share, By Type, 2020

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Key Takeaways of the Graph:

• The AMOLED held dominant position in the market and accounted for 95.2% share in the global OLED displays market in 2020. The segment is expected to reach US$ 50.7 Mn million in 2028.

Market Dynamics- Restraints

High manufacturing costs of OLED displays is expected to restrain growth of the global OELD displays market during the forecast period. The manufacturing cost of OLED displays is significantly high. As a matter of fact, the manufacturing of OLED requires process steps that raise the overall final product cost significantly high as compared to other contemporary technologies such as LCD.

Low penetration rate of OLED technology is expected to hinder the global OLED displays market growth over the forecast period. Since the OLED displays are significantly high, its penetration rate is very low as compared to other contemporary technologies. Further, as a result of the initial launch of LCD technology, the customer often perceives OLED technology as quite complex and expensive as compared to the former. Such hindrance in the fast adoption of the technology is creating a gap between the needed volume manufacturing to compete with other leading technologies.

Competitive Section

Key players operating in the global OLED displays market are Samsung Electronics, AU Optronics Corp, TDK, Sony Corporation, Rit Display, LG Display, Pioneer, and Visionox.

Key Developments

Key companies in the market are focused on deals and agreements, in order to enhance the market presence. For instance, in May 2019, Rit Display, a supplier of OLED panels, entered into a contract with PlayNitride Inc. to develop next-generation micro-LED technology for wearable devices.