OLED Displays and Lighting Market to 2020 - Technological Innovations Lead to Cost Efficient Products and New Aesthetics

Additional Information

GBI Research, a leading business intelligence provider, has released its latest research, “OLED Displays and Lighting Market to 2020 - Technological Innovations Lead to Cost Efficient Products and New Aesthetics”. The report gives an in-depth analysis of the global Organic Light Emitting Diodes (OLED) market for displays and lighting, covering four major regions - North America (USA and Canada), Europe, Asia-Pacific. The report covers market revenue forecasts for the OLED market (Displays and Lighting) from 2005-2020 It also provides market revenues breakdown for displays by application types; Cell Phones, Televisions, IT Monitors and Others and technology type; Passive Matrix Organic Light Emitting Diode (PMOLED) Displays and Active Matrix Organic Light Emitting Diode (AMOLED) Display.

Global Organic Light Emitting Diode (OLED) Lighting Market holds Enormous Revenue Potential with Dramatic Growth to Reach $8.3 billion by 2020

OLED lighting has potential as a promising next generation technology. The global OLED lighting market was valued at $12.7m in 2010 and is further expected to grow at a CAGR of 92% during 2011-2020 to reach $8.3 billion by 2020. OLED lighting has potential applications in specialty lighting, architecture lighting, back lighting, signage and general illumination. The primary revenue driver for OLED lighting is expected to be specialty lighting, which is expected to contribute almost 38% of the overall OLED revenues by 2020. Some of the applications that OLED lighting is targeting are also served by fluorescent lamps, which make OLED a replacement technology; the new technology is also expected to be competitive with light emitting diodes (LED).

OLED displays have emerged as one of the most promising display technologies in recent years. The estimated market for OLED displays grew at a compound annual growth rate (CAGR) of 34% during the period 2005-2010. The global OLED displays market was valued at $1,120m in 2010 in comparison to $256m in 2005 and is further expected to grow at a CAGR of 25.7% during 2011-2020 to reach $11.8 billion by 2020. The high growth in demand is expected to follow the take-off of OLED displays in large display applications including television sets, monitors, desktops and others. As of 2010, OLED displays were mainly used in cell phones, digital cameras, mp3 players and other small panel applications The primary revenue driver for OLED displays is cell phones, which contribute almost 65% of the overall OLED revenues. The applications that OLED displays are targeting are also served by liquid crystal display (LCD), which makes OLED a replacement technology. The manufacturers are concerned about whether the new technological developments will produce additional growth or will only displace the older technologies. The improvement in the conventional technologies and the reduction in their prices are hampering the deployment of OLEDs. The OLED industry needs a combination of new applications and technologies to accelerate revenue growth. GBI Research anticipates high revenue potential for the OLED Industry in the forecast period.

Innovation in Technology and Mass Production Volume Expected to Cause a Decline in OLED Prices

The innovation in technology and mass production volume are expected to cause a decline in OLED prices. Industry experts expect a huge decline in OLED prices once they are being produced in certain volumes. The path to high volume manufacturing and larger sizes for OLEDs has been slower and harder than anticipated by industry experts. The OLED display manufacturers are finding it difficult to reduce prices, which are holding back the commercialization of large panel lighting and displays. OLED manufactures across the globe are involved in the research and development (R&D) and expansion of their production line, which will help in attaining economies of scale and reducing prices. The unique features of OLED, such as weight, flexibility, color tunability, low power consumption and durability; show the competitiveness of this technology and its edge over others. OLEDs are also expected to penetrate into the non-lighting market with niche applications due to novel form factors

OLED displays generate their own light, meaning that they do not require backlighting and consume less power. The low power consumption of OLED displays makes them best suited for applications such as laptops and mobile handsets. OLED displays promise faster response times, wide viewing angles, exceptional color reproduction, outstanding contrast levels, and high brightness. The thin and lightweight designs of OLED displays make them attractive to use in a variety of applications such as cell phones, laptops, digital cameras and mp3 players, among others.

Asia-Pacific Region Will Become the Manufacturing Hub for OLED Lighting by 2020

The European region was a major production hub for OLED lighting in 2010, contributing 90% of the OLED lighting production; the remaining production share came from the Asia-Pacific region. In Europe, Germany was the major manufacturer of OLED lighting panels/luminaires. GBI Research predicts that the APAC countries’ production share is expected to increase to about 50% by 2020. APAC countries are preferred destinations for electronics manufacturing due to the availability of cheap labor, abundant raw materials and the robust infrastructure. The US and European countries are mainly involved in research and development (R&D), patents and processing knowledge, and subsequently outsource production to APAC countries. GBI Research finds that the US and EU countries have medium to low production lines when compared to APAC countries, but possess a strong position in process knowledge and intellectual property rights (IPR) related matters.

The production shares of the major regions in the overall OLED lighting market for 2010 are shown below:

Global OLED Lighting Market, Production Share on the Basis of Geography (%), 2010

Source: GBI Research

Large Investments by Manufacturers Signifies the High Growth Potential of OLED in the Forecast Period

OLED manufacturers are investing a significant amount to enhance their production capacities and improve R&D. This ramp up of production facilities by the key players indicates the huge demand potential of OLED lighting and displays in the future.

Philips plans to invest $57m to expand their OLED lighting panel production capacity in Aachen, Germany. The additional capacity will be available in 2012. Similarly, First O-Lite plans to invest around $150m to develop and manufacture OLED lighting panels. They plan to commence production in 2012-2013.

LG Display plans to invest $225.7m in their new OLED mass production lines; the 5.5 gen, 3-line production system, ready to mass produce 50 inch OLED-TV panels. The company aims to be a global leader in OLED TV market. Samsung Electronics Co., a global leader in semiconductor and display technologies announced its total investment in manufacturing facilities and R&D for 2011 to be $38.3 billion. Out of this, $26.5 billion will be invested in the display facilities to expand the capacity for OLED panel production and about $4.8 billion will be invested in R&D facilities.

Manufacturers are also investing in other countries to enhance their geographical influence and market position.