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Global OLED Materials Market Overview
The global organic light emitting diode (OLED) materials market attained a size of $6,000.0 million in 2016 and is projected to witness a CAGR of 24.5% during 2017-2023. Increase in demand for smartphones, rise in disposable income, and increase in OLED materials demand from the automotive sector are driving the growth of the market.
GLOBAL OLED MATERIALS MARKET, BY TYPE, $M (2016-2023)
OLED is a light emitting diode which is organic in nature and consists of an emissive electroluminescent layer that emits light in response to electric current. OLED has a subpart based on small molecules and the other that employs polymers. This display can be driven with passive matrix (PMOLD) or active matrix (AMOLED) control scheme.
On the basis of type, the OLED materials market is segmented into cathode, emissive layer (EML), electron transport layer (ETL), hole injection layer (HIL), anode, encapsulation, substrates, and others. Substrates have been the largest category in the market, with an estimated contribution of more than 25.0% in 2017. Substrates are semiconductors or electrical insulators used in various transistors and diodes. They are the most commonly used diodes attributed to its easy availability.
Based on application, the OLED materials market is divided into display and lighting. Display has been the larger application category in the market, with an estimated contribution of more than 90.0% in 2017. This is attributed to the increase in manufacturing of smartphone displays along with television displays. Display application is further categorized into television and monitors, smartphones, notebooks and tablets, and automotive.
In terms of end user, the OLED materials market is segmented into residential, commercial, and industrial sectors. Residential has been the largest category in the market, with more than 45.0% share in 2017. This can be attributed to the increasing use of these materials due to growth in residential projects and rise in disposable income.
Globally, Asia-Pacific has been the leading OLED materials market in terms of size. Most of the companies in the region are now adopting the use of OLED technology attributed to the fact that consumers want to experience high definition displays. Additionally, rise in offline sales channels and aggressive advertising campaigns by the key players in the smartphone industry are expected to augment its demand further in the region.
Also, car manufacturers are preferring advanced headlight display, heads up display unit, and ambient lighting which uses this material, thus resulting in the growth of the market.
OLED Materials Market Dynamics
Increasing penetration of Internet of Things (IoT) and automotive lighting are some of the trends witnessed in the OLED materials market.
Automotive lighting is one of the recent trends in the OLED materials market. Car manufacturers are shifting their preference from traditional LED display to OLED display due to their various favorable features, such as being thinner, lighter, and more flexible than crystalline layers in an LED or LCD. For example, the BMW M4 GTS is the first commercial car to adopt OLED technology in rear lamps.
Surge in smartphone demand, increase in disposable income of consumers, and increase in the use of these materials in the automotive industry are expected to propel the growth of the global OLED materials market.
With improvement in technology, the quality of displays has also improved. This has increased the demand for OLED displays in smartphones, which have in turn boosted the growth of the OLED materials market. Consumers now prefer to use smartphones having high quality display which can be provided with OLED films. With the rise in disposable income, people are now moving toward high-quality products. Customers prefer electronic goods which come with all the features like internet, camera, and other multimedia, and are ready to pay for them. This has pushed the manufacturers to manufacture OLED display smartphones, resulting in the growth of the market.
The OLED materials market has seen a significant growth in recent times. However, the material has certain drawbacks too. For instance, the lifetime of conventional OLED displays is around 5,000 hours, while that of normal LCD displays is around 10,000 hours. Also, the material is easily damaged by water, due to which an improved sealing process is necessary for the displays; thus, the above-mentioned factors are restraining the growth of the market.
OLED Materials Market Competitive Landscape
Some of the major players operating in the OLED materials market industry are Bayer AG, DowDuPont Inc., Idemitsu Kosan Co. Ltd., LG Chem, Merck KGaA, Novaled GmbH, Sumitomo Chemical Company Limited, TCI America, Universal Display Corporation, and Heraeus Holding GmbH.