Global OLED Materials Market is segmented By Type(Substrates, AnodeEncapsulation, Hole Injection Layer (HIL), Hole Transport Layer (HTL), Electron Transport Layer (ETL), Emissive Layer (EML) & Cathode), By Application( Smartphones for the OLED materials industry, Automotive, Television & Monitors, Notebooks & Tablets, Lighting & Others), By End-user( Industrial, Commercial & Residential) By Region (North America, Europe, South America, Asia-Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
Global OLED Materials Market is estimated to grow at a CAGR 26.7% till 2031. Raising demand for Smartphone’s is the major factor for OLED materials industry growth. Competitive rivalry intensifies with Sigma-Aldrich Co., Novaled GmbH, LG Chem, TCI America, Sumitomo Chemical, The Dow Chemical Company and others are operating in the market.
OLED is a light-emitting diode in which the organic layer emits visible light in response to a current. While the LED is based on the p-n diode structure, the OLED has a mechanism through which the p-n region is made by changing the conductivity of the host semiconductor.
Market Summary
| Metrics | Details |
| Market CAGR | 26.7% |
| Segments Covered | By Type, By Application, By End-user, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | North America |
| Largest Market Share | Asia Pacific |
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Market Dynamics
The market is driven by cutting-edge technologies and significant investments for research by many companies across the world necessitated by the increasing sale of smartphones, LEDs, and digital displays and the rise in the setting up of wireless technology devices around the world
A lot of companies have invested in and facilitated research on OLEDs which has pushed the OLED material markets to grow. Cutting-edge technologies have also enabled companies to research and innovate which has provided an impetus to the OLED materials market. The rapid adoption of OLED displays in smartphones, high demand for better viewing experience from smartphone and television consumers, and increased demand for active-matrix organic light-emitting diode (AMOLED) displays in fields like Augmented reality and Virtual reality (AR/VR) has driven the market’s growth.
For example, in 2018, Samsung showed their research roadmap at their 2018 Samsung OLED Forum which included Fingerprint on Display, Under Panel Sensor, Haptic on Display, and Sound on Display, all of which were innovations in OLEDs. In 2019, Novaled Company opened a new headquarter with a research and development center for cutting-edge OLED technology in Dresden, Germany. In 2020, researchers at the Queensland University of Technology (QUT) proposed using human hair which is a source of carbon and nitrogen to create OLED displays which would drastically reduce the cost of manufacturing OLEDs.
High production cost, high wastage and low yield, short lifespan, and deteriorating colors have caused problems and proved to be a hindrance to the growth of the market
The high production cost of manufacturing OLEDs has been the biggest hindrance to the growth of the market as the high price makes it unappealing to the manufacturers thus not all devices adopt it as it would lead to an increase in the price of the device and hence make it less affordable.
Another problem is the low yield and high wastage of OLED production. Even though the yield rate has increased from 65% to 80%, but still, it is much less than the optimum value and hence causes an unwanted burden to the manufacturers and a waste of money.
The lifespan of an OLED display is also one of the major concerns. The organic molecules degrade sooner than the inorganic molecules. Hence OLEDs wear out much faster than traditional LEDs and LCDs.
The OLEDs are made up of three color pixels- red, green, and blue. The red and green sub-pixels have a longer lifetime as compared to the blue ones. Hence, the device loses uniformity in color production across the panel.
COVID-19 Impact on OLED Materials Market Growth
OLED materials play an important role in various sectors such as automotive, industrials, commercials, and others. Many production factories in these sectors have been closed due to the COVID-19 pandemic which in turn has harmed the demand and supply chain of OLED materials. Many OLED manufacturers cut their production by a significant amount and subsequently, there was a very low supply of OLEDs which adversely affected the market. The manufacturing process and supply chain management were also disrupted due to the pandemic. For instance, in 2020, the OLED TV market faced the dual headwinds of hindered panel supply and high retail prices, according to WitsView. Aside from the pandemic-induced slowdown in OLED demand, the more flexible pricing of QLED products, which is an alternative to OLED products, represented a substantial threat to the global OLED materials market. Due to the COVID-19 pandemic, LG Display's move to expand its OLED production suffered since the company's plan to ramp up its Guangzhou faced delays.
Market Segments Analysis
The global OLED (Organic Light-Emitting Diode) Materials Market is segmented by type, voltage capacity, application, end-user, and region.
In terms of type, the global OLED materials market is bifurcated into Substrates, Hole Transport Layer (HTL), Electron Transport Layer (ETL), Hole Injection Layer (HIL), Encapsulation, Emissive Layer (EML), Anode and Cathode
The substrate segment had the highest market share in 2019 due to low-cost availability and the rising use of electronic devices like smartphones, televisions, etc. Substrates act as a base for OLED. As of June 2021, Samsung is working on a stretchable OLED display for wearables. Samsung’s OLED stretchable skin prototype can be stretched to an elongation of up to 30 percent without performance degradation. This will have a positive impact on the growth of the substrate segment as new technological breakthroughs will attract attention and signal a new opportunity for the companies to grow. As the demand for smartphones and televisions is ever-increasing, the substrate segment is poised to grow even further and have a high market share.
Similarly, Encapsulation, Anode, Hole Injection Layer (HIL), Hole Transport Layer (HTL), Electron Transport Layer (ETL), Emissive Layer (EML), and Cathode segments are also increasing at a very fast pace due to growth in the launching of digital displays for manufacturing of LED televisions, smartphones, digital wearables, etc. For instance, in 2020, Samsung Company launched its QT67 series QLED TV models in South Korea with first-class energy efficiency.
In terms of application, the global OLED Materials Market is segmented into smartphones, automotive, television & monitors, notebooks & tablets, and others
Among all these, the smartphone sector had the highest market share in 2019. This growth is projected due to the rise in the growing smartphone sale all over the world. As per the reports of the International Monetary Fund, in 2016, global smartphone sale was around 1.5 billion units and is increasing continuously.
Similarly, the automotive, television and monitors, notebooks, and tablets segment are also growing faster due to digital technology's adoption, especially in developing countries like India and China. According to the India Brand Equity Foundation, India's television industry has increased from USD 9.23 billion in 2016 to USD 11.78 billion by 2018, registering a growth of 13%.
The Global OLED (Organic Light-Emitting Diode) Materials Market is also classified based on end-users as industrial, commercial, and residential.
Among these, residential had the highest market share in 2019, owing to increasing demand for LED lighting for household usage due to high energy-saving capacity.
Similarly, the industrial and commercial segment is also growing as there is an increased demand for energy savings for an eco-friendly environment in the industrial area.
Market Geographical Share
According to region, the global OLED materials market is segmented into Asia-Pacific, North America, South America, Europe, Middle-East and Africa
Among all of the regions, Asia Pacific has dominated the global OLED materials market and is expected to grow at the highest CAGR during the forecasted period due to the ever-increasing demand, especially in India, Japan, South Korea, and China. China is the world leader in LED manufacturing due to readily available raw materials, considerable government subsidies, and incentives. According to the climate group organization, China accounted for around 46% of LED products worldwide. Moreover, government incentives for promoting LED lighting for households drive the OLED materials market's demand. In 2018, Idemitsu Kosan Company established a manufacturing facility for OLED materials in Chengdu, China, to allow for the growing demand for organic light-emitting diode (OLED) materials in China. According to the Financial Express, in 2021, the Ministry of Electronics and IT of India will provide incentive schemes for setting up display and semiconductor fabrication units in India which will be a major boost for the OLED materials market.
The North America and Europe region is expected to have positive market growth due to the growing technological advancement and the technological edge that they have over other regions of the world. According to the Climate Group Organization, the North American region has around 30% market share for LED products followed by Europe at 17% dominated due to the world’s highest quality LED products and design.
Market Companies and Competitive Landscape
The global OLED Materials market is highly competitive with several international and local markets. Product diversification, revenue generation, and opportunities make the market more competitive. Sigma-Aldrich Co., Novaled GmbH, LG Chem, TCI America, Sumitomo Chemical, The Dow Chemical Company, Idemitsu Kosan Co., Ltd., Cambridge Display Technology, DuPontLtd., BASF SE, Borun Chemical Co., Merck KGaA, Ltd., Hodogaya Chemical Group, Heraeus Holding, Beijing Aglaia Technology Development Co., Universal Display and Covestro AG are the leading market players with significant market share.
Companies are entering into acquisitions, collaborations, mergers, and licensing to increase their market activity. For example, in 2020, Samsung Company announced an investment of around USD 13.1 trillion in building the World’s first line of QD Display and is scheduled to start production in 2021. In 2019, LG Chem acquired DuPont’s technology related to soluble organic light-emitting diodes (OLEDs) which include about 540 patented assets as well as production facilities. In 2021, OLED inkjet printing developer Kateeva announced that it has established a strategic partnership with high-index material maker Pixelligent Technologies. The collaboration aims to optimize the light output efficiency by inkjet printing of planarization layers over microlens arrays.
Novaled Company
Overview: Novaled is an organic light-emitting diode-providing company. It is well noted for its expertise in combining physics, chemistry, and engineering to build high-quality OLEDs.
Product Portfolio: The Company has a product portfolio of OLED which includes:
- OLED in lighting and display: The product is a perfect combination of proprietary organic material and complementary innovative technology for creating OLEDs for display and lighting.
Key Development:
- Novaled Company opened a new headquarter with a research and development center for cutting-edge OLED technology in Dresden, Germany on 12th June 2019.
