OLED Panel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

OLED Panel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The OLED Panel Market is expected to register a CAGR of 13.2% over the forecast period. OLED continues to be a significant display technology trend, with larger screen sizes, improved 8K (7680 x 4320 pixels) resolution, and relatively new form factors. Companies like Samsung and LG have experimented with flexible OLED displays for quite some time. Samsung, in particular, uses curved flexible OLED panels for all of its flagship devices now.

Key Highlights

• Due to multiple advantages with viewing angles and black levels, OLED Televisions are surging in demand in several regions. According to the ICDM, in qualifying a TV resolution, contrast modulation is more critical than pure pixel count, and OLED TV displays cater to this specific demand.
• Based on market diffusion models, flexible OLEDs are anticipated to observe a high market penetration in the foreseen period. With the maturity of smartphones in many significant markets, such as China, smartphone manufacturers are developing new, foldable phone models that incorporate flexible OLEDs and further have a massive potential for growth over the next few years.
• Mass production enables companies to reach economies of scale, thereby benefiting the device manufacturers by reducing the overall price of the device. Currently, only a few TV manufacturers use OLEDs, as the technology is considered too expensive for the mid-range market. Many fitness bands and simple smartwatch devices adopt PMOLED displays.
• For instance, Fitbit's Charge band uses a small monochrome (white) PMOLED display. Factors like thickness, flexibility, and appearance of OLED display, make it a favorable technology for wearable applications over LCDs. Wearable devices, which are expected to reach 929 billion by 2021, are likely to drive the market further, along with other lighting applications in the automotive and healthcare industries.
• Further, based on simple deterministic extrapolation, the demand for quantum dots-based OLED display panels is anticipated to surge exponentially in the forecast period.
• The COVID-19-induced lockdowns pushed people to spend more time indoors as restrictions were imposed to slow the spread of COVID-19. Events, meetings, and entertainment initiatives were moved onto screens, many shifting to online platforms to improve accessibility. The advancement encouraged businesses to use smart TV units to maximize applications or deployment in homes or industrial settings.

Key Market TrendsAMOLED Display in Smartphone is Expected to Witness High Growth

• The consumer electronics sector is growing at an incredible rate due to remarkable technological developments such as improved picture quality in large-screen TVs and the expansion of smartphones. These innovative products are made possible by OLED technology. Consumer demand for OLED products is driven by technological advancements in consumer electronics and global economic growth.
• Technological advancements and the increasing use of OLED displays in smartphones provide lucrative growth opportunities. Furthermore, growing investments in OLED development by prominent electronics companies such as LG, Philips, and Sony will drive industry evolution during the growing period. For instance, in June 2022, LG Display collaborated with the Korean bakery Paris Baguette to install 38 transparent OLED displays for use as digital screens.
• Further, the OLED panel requires no additional backlighting, and it is emissive, due to which it overshadows the flat panel displays traditionally used in smartphones. Additionally, owing to the superior properties, such as less thickness and bright output, mobile manufacturers have been increasingly incorporating AMOLED panels in their products, which is likely to drive market growth.
• Additionally, Samsung, one of the leaders in the OLED panels market, incorporates AMOLED and Super AMOLED display technologies in most of its smartphones.
• Continuous investment undertaken by numerous display factories to expand AMOLED production lines will boost the AMOLED penetration rate in the market. Moreover, the increasing demand for smartphone displays across the globe, owing to the increasing smartphone penetration rates, is expected to propel the demand for AMOLED panels in the market.

Asia Pacific Occupies the Largest Market Share

• Asia Pacific is the biggest market for OLED panels as most of the key players, including LG, and Samsung, have their manufacturing facilities in the region. Additionally, several TV manufacturers, signage display manufacturers, and other vendors have their headquarters in the APAC region.
• Due to the trade war between the United States and China, a large portion of the budget planned by the Chinese government is percolating into the display industry. In contrast, the semiconductor industry, which is one of the intensive investment promotion industries, foreshadows difficulties.
• Despite its small size, South Korea invests in academic R&D for OLED technology. The country is witnessing huge investments from electronics giants like LG and Samsung.
• Further, in August 2021, LG Display announced its plans to invest KRW 3.3 trillion to expand its medium-and-small sized OLED display production capacity. According to the company, the investment will be made through March 2024 and will be used in OLED facilities in South Korea that manufacture sixth-generation (1,500mm x 1,850mm) substrates.
• China is the global hub for manufacturing. It is one of the largest exporters of consumer goods, and it is the fastest-growing consumer market in the world. The country boasts one of the world's largest television markets. For instance, LG is planning to collaborate with retailers and TV makers in China to expand its OLED panel business. The sales of OLED display panels are expected to grow exponentially in the region.
• Amidst the COVID-19 situation, many electronic manufacturing companies in China were faced with the difficulty of being unable to obtain adequate production capacity from both fabs and package suppliers. If this production slowdown remains for an extended period, these companies may face bankruptcy or acquisition.​

Competitive Landscape

The OLED Panel Market is fragmented and competitive because of the presence of many players conducting business on a national and an international scale. Also, panel manufacturers are investing in alternative technologies for various players, which showcases an intense rivalry among the players. The major players in the market are Samsung Display Co. Ltd, LG Display Co. Ltd, and Sony Corporation.

• March 2022 - LG Display first introduced a 77-inch 8K OLED TV panel with MLA technology at the Society for Information Display's (SID) Display Week 2022, which was held in San Jose, California, on the 10th (local time) for three days. LG Display's 77-inch 8K OLED TV was the first in the world to use both EX technology and MLA.
• February 2021 - Apple Inc announced its partnership with Taiwan Semiconductor Manufacturing Co to develop micro-OLED displays, which the company plans to use in its upcoming augmented reality (AR) devices.

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