According to market research firm IHS Markit, the market for organic materials used to fabricate organic light-emitting diode (OLED) display panels grew during the second half of 2017. IHS Markit says that the revenues for such materials for OLED display panel fabrication increased by 20 percent compared in the second half of 2017 to reach an estimated $355 million
The OLED Materials Market Tracker by IHS Markit showed that in 2016 and the first half of 2017, the OLED materials market seemed saturated with almost the same level of revenues posted. However, in the second half of 2017, the market experienced a sudden spike in growth.
Apple Launched OLED-Panel-Using Smartphone, iPhone X
Not coincidentally, Apple launched the company’s first OLED panel using smartphone, the iPhone X, in the third quarter of 2017.
The product launch added tremendously to the demand for OLED materials. Also during the second half of 2017, LG Display set up a new E4-2 fab for OLED TV panels.
“The growth of OLED materials demand has been offset by price reduction, resulting in the market saturation until mid-2017.” said Jimmy Kim, Ph.D. and senior principal analyst at IHS Markit. “However, the launch of the iPhone X as well as the expansion of OLED panel manufacturing capacity boosted the demand in the second half.”
The iPhone X will not be the only Apple product using OLED panels, Kim indicated. “Apple is expected to apply OLED panels to more of its products and OLED TV is also one of the most emerging products in the TV market,” Kim said.
Kim also noted that based the demand growth and current investment plans, the OLED materials market is forecast to continue growing until 2020 and will reach $824 million by the second half of 2020.