OLED Encapsulation Materials Market to Grow 16% CAGR to $233 Million by 2021
August 21, 2017 | IHS MarkitEstimated reading time: 2 minutes
The popularity of organic light-emitting diode (OLED) TVs and smartphones has boosted not only the OLED display market but also the OLED encapsulation materials market. According to IHS Markit the OLED encapsulation materials market is expected to grow 4.7% in 2017 compared to a year ago, to $117 million.
“The market is forecast to grow even faster as Chinese and South Korean panel makers have aggressively invested in new OLED fabs, resulting in the increase in OLED shipments in terms of area,” said Richard Son, senior analyst at IHS Markit. In particular, South Korean Chinese panel makers recently announced new OLED fab investment plans for not only Gen 6 but also Gen 8.5 and even for Gen 10.5.
As a result of the investment, the OLED encapsulation materials market is forecast to reach $232.5 million by 2021, growing at a compound annual growth rate of 16% from 2017.
Unlike thin-film transistor liquid crystal display (TFT-LCD), OLED displays require encapsulation as the organic elements are vulnerable to moisture. The OLED encapsulation materials can be categorized into metal, frit glass, thin-film encapsulation (TFE) and hybrid.
The metal type is expected to lead the market in terms of revenue because it is mainly used for OLED TVs whose growth is fastest. However, with Chinese smartphone brands releasing a wide range of new products with OLED panels, demand for frit glass encapsulation materials, which are currently applied to smartphones with rigid-OLED displays, will remain steady, though losing its market share.
According to the AMOLED Encapsulation Materials Report 2017 by IHS Markit, in terms of revenue, metal type encapsulation is expected to account for 50% and the frit glass type to take 43% in 2017, and 67% and 23% in 2021, respectively.
“Hybrid encapsulation, which combines TFE with a barrier film, has high production cost and its flexibility is limited, and thus demand for the hybrid type will not increase significantly,” Son said. “However, the latecomers are focusing on the hybrid encapsulation as it has a lower technological entry barrier compared to TFE, allowing them to succeed in mass production faster than when using TFE.”
From a mid- and long-term perspective, the hybrid encapsulation materials market will continue to grow for a while. TFE and the hybrid type are expected to take 6 percent and 1 percent of the encapsulation materials revenue market in 2017, respectively, but they will grow to reach 7% and 3.5%, respectively, in 2021.
The AMOLED Encapsulation Materials Report 2017 by IHS Markit provides information about the entire range of OLED encapsulation materials shipments by technology and application, including five-year forecast. Latest industry trends, including new technology development trends, are also updated.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
Industrial PC Market Size to Record $1.75 Billion Growth from 2023-2027
05/03/2024 | PRNewswireThe global industrial pc market size is estimated to grow by USD 1.75 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 6.29% during the forecast period.
Real Time with… IPC APEX EXPO 2024: Direct Imaging Equipment and Quad-wave DLP Light Engine Technology
05/03/2024 | Real Time with...IPC APEX EXPOGuest Editor Kelly Dack and MivaTek's Brendan Hogan delve into the company's innovative technologies, including direct imaging equipment and quad-wave DLP light engine technology. They highlight the benefits of direct imaging, compensation, and DART technology.
LQDX Divests Aluminum Soldering Business - Mina™ - to Taiyo America Inc.
05/02/2024 | PRNewswireLQDX, formerly known as Averatek Corp., developer of high-performance materials for advanced semiconductor manufacturing, today announced that it has divested its aluminum soldering business – known as MinaTM – to Taiyo America Inc., a global market leader in advanced electronic materials.
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.