OLED Market Size, Share, Trends & Growth Opportunity [2031]

Report Description

OLED Market Outlook 2031

The global OLED Market size was USD 38.5 Billion in 2022 and is likely to reach USD 214.1 Billion by 2031, expanding at a CAGR of 21% during 2023–2031. The market is driven by the increasing adoption of OLED displays in new-generation smart devices and rising investments toward establishing development facilities for the production of OLED display panels.

Growing demand for smart electronics across industries and for home appliances is projected to boost the organic light-emitting diode (OLED) market. It is a commonly used display materials in new smart devices, due to its power efficiency and better image quality. The demand for smart electronics is rapidly growing worldwide across several segments, directly benefiting the key players in the market. Additionally, increasing focus on R&D of innovative displays, is likely to increase opportunities in the market.

• In April 2023, the government of South Korea announced that Samsung Display, a unit of Samsung Electronics, intends to make an investment of 4.3 trillion won (USD 3 Billion) by 2026 to raise production of OLED panels used in tablets and laptops. Through this investment, the company intends to gain a leading share in the premium market.

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The research report finds that the COVID-19 pandemic affected the OLED market. The nationwide lockdowns implemented by various governments resulted in a slowdown of production and supply chain activities. Workforce shortage and closure or limited operations declined production.

The demand for OLED materials witnessed restricted growth, as several end-user industries lowered production levels, owing to a decline in product demand and economic uncertainties. However, during COVID-19, the digitization trend saw tremendous growth, which has fueled the demand for OLED display devices, thereby supporting the market recovery.

Impact of Artificial Intelligence (AI) on the OLED Market

AI advancements are expected to benefit the market during the forecast period. The technology is bringing revolutionary transformations to consumer electronics, making them highly efficient and convenient, with each new version.

The companies in the market are adopting AI for making smart displays, allowing users to access the features and content on the screen with gestures and predictions. Companies are investing in research to develop novel OLED displays and OLED lighting, with AI as one of the core features of these devices.

• At the Consumer Electronics Show (CES) 2023 held in January 2023, LG, one of the key market players, unveiled new OLED TVs with artificial intelligence features and surround sound. The company’s new series LG EVO OLED TV includes Z3, C3, and G3 models. These products are powered by the new LG AI processor and an improved version of webOS2.0 software.

OLED Market Dynamics

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Major Drivers

Increasing applications of OLED materials in various industries are fueling the market. Several sectors are utilizing this display technology in their flagship electronic products. OLED materials offer several advantages over display technologies such as LCD and LED. Smartphones, televisions, wearable devices, and digital cameras are being developed with OLED displays, owing to their superior picture quality, eye comfort, and power efficiency. Smartphone makers are increasingly integrating OLED and AMOLED technology for their new products, which is rapidly fueling their demand worldwide.

• As per estimates published in June 2023, in the first quarter of 2023, nearly 50% of smartphones sold worldwide had OLED display. This is a 29% growth over the number in the first quarter of 2020. The display quality and material are emerging as key influencing factors in making smartphone purchase decisions.

Existing Restraints

Availability of low-cost alternatives with superior properties is likely to restrain the market. Some of the displays offered by competitors in the market including direct view LED and micro-LED are more efficient than OLED materials. Additionally, micro-LEDs do not need a backlit panel. These displays reduce response time, improve brightness, and have a long-time battery-run. Thus, making them a lucrative option to be used in corporate and retail devices.

Emerging Opportunities

Rising popularity of smart TVs and wearable devices is expected to create significant growth opportunities in the OLED market. Modern Android TVs come with OLED display technology, providing functional and attractive lighting panels. Urban and semi-urban populations, for viewing over-the-top (OTT) entertainment on big screens, are increasingly buying smart TVs.

Smart device sales are highly supported by growing disposable income and changing lifestyles. Along with smartphones, the preference for smart wearables such as smartwatches, fitness devices, and others is rising. These devices are developed with OLED materials to improve battery duration and bright displays. Additionally, companies in the market are focusing on the development of foldable OLED displays, which is projected to further increase opportunities for the market players.

Scope of the OLED Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Type Analysis

Based on type, the OLED market is bifurcated into lighting and display. The display segment is expected to expand at a significant pace during the projection period, owing to the increasing adoption of OLED materials in smartphones and smart TVs. The sales of mobile phones have been at an all-time high in the recent years, owing to growing digital literacy, internet connectivity, and rising income levels. OLED digital displays provide vibrant color schemes and contrast, and deep blacks to smart devices, facilitating high user experience.

• A recently published report reveals that worldwide smartphone subscription number stands at 6.92 billion in 2023. This means, that almost 86% of the worldwide population uses smartphones. In the recent years, major smartphone companies, including Apple, Samsung, OPPO, Google, and Huawei begun using OLED materials in their smartphone displays, which is boosting the demand in the market.

The lighting segment is anticipated to exhibit considerable growth rate, owing to their lightweight and ultra-thin panels. These lighting devices do not heat the way other devices do, which eliminates the requirement for a heat sink. OLED light technology demand is growing steadily for general lighting purposes and automotive applications. Increasing focus on sustainability and energy efficiency in residential and commercial places is likely to drive demand for OLED light bulbs.

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Technology Analysis

On the basis of technology, the global market is segregated into passive-matrix OLED display, foldable OLED, active-matrix OLED Display, transparent OLED, white OLED, and others. The Active-matrix OLED display segment is projected to hold the largest revenue share in the market, owing to its preference for the display of touchscreen devices over LEDs and LCDs.

AMOLED screens are considerably faster than passive-matrix OLED (PMOLED). These materials can be embedded in any size display. AMOLED materials offer improved picture quality and fast motion response, which are important aspects of next-generation smartphones.

Display Panel Type Analysis

On the basis of display panel type, the OLED market is segmented into flexible, rigid, foldable, and others. The rigid segment is expected to register a robust growth rate during the forecast period, owing to its major use across consumer electronics. Rising adoption of digital signage, smart TVs, home appliances, and monitoring systems are boosting the use of rigid OLED displays. Furthermore, increasing demand for wearable devices such as smartwatches and fitness trackers is expected to fuel the segment.

The foldable segment is anticipated to witness rapid growth in the market, owing to the growing implementation of foldable OLED displays in smartphones. These displays enable smartphone makers to manufacture large-sized devices, that can be used by individuals at their convenience. The foldability allows smartphones to be fitted in the pockets, and comfortably carried anywhere. The development of foldable smart devices is growing rapidly, as it allows multitasking and improved entertainment experience.

• A study published in August 2023 revealed that foldable smartphones contributed 1.2% of unit shipments globally. This share is likely to expand to 3.5% by 2027.

Application Analysis

On the basis of application, the global market is segregated into smartphones & tablets, lightning products, television, digital signage, automotive, home appliances, PC monitors, laptops, and wearable devices. The smartphones & tablet segment is projected to expand at a substantial pace during the forecast period, due to the rising adoption of OLED technology by the industry.

The screen is a major aspect when deciding to buy mobile and tablets. The OLED digital displays facilitate the mobile devices with improved efficiency, due to high-speed pixel response time. The usual refresh rate for next-generation OLED smartphones is 120 Hz.

The television segment is expected to demonstrate a rapid growth rate in the market, owing to the growing adoption of smart TV sets in modern homes globally, for entertainment consumption. The rise of OTT and social video-sharing platforms has boosted the sales of digital television with OLED displays.

Along with entertainment, these TVs are used for gaming purposes, which require high performance and power efficiency from displays. Most of the smart TVs come with a base refresh rate of 120 Hz; however, some manufacturers have achieved 240 Hz refresh rate.

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Regional Outlook

In terms of region, the global OLED market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is projected to dominate the market during the forecast period, due to the significant presence of smart electronics manufacturers in this region. Increasing use of OLED display panels from major smartphone brands including Apple, Oppo, Samsung, Vivo, Xiaomi, and others is boosting the market in the region.

Major economies in Asia Pacific, such as India, China, Japan, and South Korea are manufacturing hubs for the world’s smart devices. As a result, a significant revenue share of the OLED market is anticipated to come from these countries.

The market in North America is anticipated to exhibit the fastest growth during the projection period, due to increasing demand for premium consumer electronics with OLED display. The utilization of smart devices, such as smart TVs, monitors, digital signage, and tablets, in several industries including healthcare, manufacturing, automotive, environmental, and others is fueling the market in the region. Rising R&D toward advancements and extension of OLED material applications are likely to generate lucrative opportunities for the market players in this region.

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