OLED Materials Market Size, Share & Analysis | Forecast 2031

Report Description

OLED Materials Market Outlook

The Global OLED Materials Market was valued at USD 2,038.4 Million in 2022 and is projected to reach USD 15,268.3 Million by 2031, expanding at a CAGR of 26.5% during the forecast period.

Organic electroluminescent (OLED) is another name for organic light-emitting diode (OLED). It is a light-emitting diode (LED), with an emissive electroluminescent layer consisting of an organic compound film that produces light in response to an electric current.

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OLED materials are used to make digital displays in devices such as television screens, computer monitors, and portable systems such as cellphones, handheld game consoles, and personal digital assistants (PDAs).

The primary advantages of these materials include their ability to produce brilliant colors, deep blacks, and a high degree of flexibility, allowing for the creation of bendable or curved displays. They tend to be more efficient than traditional LEDs or LCD screens, and offer faster refresh rates and better contrast ratios.

Macro-Economic Factors

Economic growth

Economic growth is one of the key macroeconomic factors that influence the OLED Materials Market. The overall economic growth of countries and regions drives market growth.

Strong economic growth frequently results consumer spending on high-end electronics such as smartphones, wearables, television sets that all required OLED displays. As emerging countries industrialize and become urbanized, there is an increase in the use of smartphones, televisions, and other electronic gadgets that use OLED technology.

The growing middle-class population in these regions provides a significant consumer base for OLED devices, promoting market expansion. The growing popularity of smart TVs and wearable gadgets is likely to drive significant growth in the OLED industry.

Modern Android TVs feature OLED display technology, which provides functional and appealing lighting panels. Smart TVs are increasingly being purchased by urban and semi-urban populations in order to enjoy over-the-top (OTT) entertainment on large screens.

R&D Investments

One of the key macroeconomic factors that influences the growth of the OLED materials market is investment in research and development (R&D) of products. Ongoing R&D activities conducted by prominent players are impacting the global OLED materials market, by enhancing production efficiency and quality of OLED materials through the introduction of new manufcaturing plants at various regions and countries.

For instance, On 28^th October 2020, Merck KGaA, a leading science and technology company, announced a 20 million euro expansion of its OLED (organic light-emitting diode) manufacturing capacity at its sites in Korea, Pyeongtaek and Shanghai. The sublimation units will be created to suit customer demand in the expanding OLED materials market.

Merck will use the investment to expand its domestic OLED production footprint in Korea and to create OLED production capacity in China. The increased local manufacturing capacity will help the company maintain its position as a leading supplier of high-purity OLED materials to Asian panel makers.

OLED Materials Market Dynamics

Market Driver - Increasing Investments in OLED technology and Manufacturing facilities

OLED is an innovative technology that provides thin, efficient, and bright displays and lighting. OLED is an emerging display technology that is quickly becoming the standard display technology in many markets since it provides display panels with the best image quality and freedom of design because it can be made flexible and transparent.

Many industry analysts anticipate that OLEDs will eventually replace existing display and lighting technologies. As a result, numerous corporations have begun to invest extensively in OLED R&D. Companies studying on OLEDs and acquiring crucial patents connected to OLED materials are among those active in the market's value chain.

For instance, On 24th April 2020, Merck KGaA announced that they have acquired more than 700 patent families for OLED display applications from Konica Minolta. The Chemical companies are involving in the development of OLED materials, as well as OLED gadget companies or resellers who used OLEDs in their electronic products such as smartphones, televisions, and other consumer electronic devices.

Companies have been working on a foldable OLED device for quite some time, which may drastically revolutionize the mobile device market by allowing smartphones to transform into tablets or phones that can be folded into smaller devices.

Market Driver - Rising demand for OLED Displays in various applications and adoption in AR/ VR headsets.

OLED displays are lighter, smaller, more flexible, and emit brighter colors than traditional displays; as a result, their applications in numerous areas have risen dramatically in recent years. OLED technology is widely used in mobile phones, televisions, wearable gadgets, and other consumer electronics.

For the past decade, virtual reality (VR), augmented reality (AR), or mixed reality (MR) headsets and smart glasses have been widely used by consumers. The demand for AMOLED displays in VR/AR applications is predicted to rise since AMOLED is the best display for AR/VR. This is due to the tremendous gains provided by AMOLED panels in terms of response time and time lag when compared to other display technologies.

The headsets, goggles, and glasses have found success in enterprise, industrial, and defense markets, where they cater to specialized use cases and niche applications. This aspect will boost the growth of the OLED materials market over the forecast period.

Market Restraint - Huge investment and Manufacturing related complexity in OLED

The LCD production plants can be upgraded to OLED production plants by deploying new equipment. However, transitioning from LCD to OLED requires a significant initial expenditure for LCD producers. Furthermore, this investment requirement comes at a time when the TFT-LCD sector is oversupplied and firms are losing money.

Companies are expected to be the first to suffer significant losses on their initial investment before rebounding on OLED. These companies will need a few years to turn a profit in OLED. In the previous five years, there has been considerable progress in the production capability of OLED display panels.

However, producing an AMOLED screen still requires more advanced technology than producing an LCD display. The supply chain is further complicated by a complex value chain and multiple suppliers.  It will be difficult for the corporation to acquire a competitive edge with OLED technology in terms of performance and pricing in a display industry dominated by TFT-LCD displays.

The high production cost of manufacturing OLEDs has been the most significant factor to hinder the market growth, as the high price makes it unappealing to manufacturers. Hence, all electronic gadgets in the market does not adopt the OLED technologies.

Market Opportunity - Expansion and Growth of the Consumer Electronics Industry

The expansion and growth of the consumer electronics industry created significant opportunities for the OLED materials market during the forecast period. OLED Materials are widely used in electronics manufacturing, due to its three main types of materials are used in OLED such as hole-transfer materials (HTM), electron-transfer materials (ETM) and light-emitting materials (ELM).

There is a higher demand for OLED Materials, due to the growing consumer electronics industry. These OLED displays are used in a variety of applications such as Smartphones, Tablets, AR/VR, and Television Sets. Nowadays, many companies are using OLED displays for Smartphones and Tablets as they offer vibrant colors, better contrast and deeper blacks compared to LCDs.

For instance, LG is a prominent player in the OLED market manufacturing OLED panels for wide range of applications such as TVs, monitors, and smartphones. The consumer electronics industry is global, and its expansion is not restricted to a single location or to any specific region. This factor provides opportunities for OLED materials manufacturers to expand businesses to cater to the global demand for OLED materials.

Scope of OLED Materials Market Report

The report on the Global OLED Materials Market  includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

OLED Materials Market Segmental Outlook

The Global OLED Materials Market is segmented on the basis of by Component, by Application, and by End-user.

On the basis of component, the Global OLED Materials Market  is segmented into  BL, ETL, EIL, HTL, Others. The Others segment is expected to hold a significant market share during the forecast period due to low-cost availability and the growing demand of electronic devices like smartphones, televisions, etc.

The substrates component act as a base for OLED. This will benefit the substrate segment's growth as new technological advancements will attract attention and indicate another opportunity for businesses to grow.

In terms of Application, the OLED Materials market is bifurcated into Display and Lighting. The Display segment is expected to hold a significant market share during the forecast period and is projected to expand at a significant CAGR due to rise in demand for OLED materials in displays of smartphones.

The growing adoption of OLED technology in Television sets and advancement in flexible and foldable display technologies are the factors which are driving the growth of the display segment in the market.

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Based on End-user, the Global OLED Materials Market is segmented into Consumer Electronics, Automotive, Healthcare, and Others. The Consumer Electronics segment is expected to hold a significant market share during the forecast period due to consumer preferences towards high-quality OLED displays for their electronics appliances such as smartphones, Televisions, and others.

The consumer electronics industries are considering OLED screens as their USP products. The integrations of OLED display on wearables devices are also driving the growth of the consumer electronics segment in the market.

Regional Outlook

On the basis of region, the Global OLED Materials Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia-Pacific region is expected to hold a significant share of the market. These regions have highly established electronics industries which serve as the primary consumer of OLED materials.

The existence of major OLED producers and the increasing demand for OLED screens in smartphones and various consumer electronics have significantly boosted the market. The other factors contributing to the market growth are advancements in technology and the increase in disposable income leading to demand for advanced display technologies in this region.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global OLED Materials Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global OLED Materials Market