AMOLED manufacturing equipment market, expected to be about 36 trillion won from 2015 to 2020

According to an equipment report, “2014 AMOLED manufacturing Equipment Technology Analysis and Market Forecast (2015~2020),” published by a market research firm, UBI Research, the AMOLED manufacturing equipment market size will be about 36 trillion won from 2015 to 2020. Stepper appears to be the largest sector in the equipment market by forming about 10 trillion won and taking up about 30 % of market share. Evaporator will take 17% with about 6 trillion.

It is forecasted that Chinese makers will start to invest in AMOLED business. Predicted market size is about 6 trillion won in 2015. In 2017, full-scale investment on the AMOLED panel line for TV will be started. About 9.5 trillion won market will be formed and become the largest market size by 2018.

From 2015 to 2020, the market share of backplane manufacturing, encapsulation and OLED manufacturing equipment will be 69%, 17% and 14%, respectively, in the overall AMOLED equipment market.

In the overall AMOLED equipment market by country, Korean market size is expected to grow to about 20 trillion won taking up 55% market share for six years and it is analyzed that Korea will continuously lead the AMOLED industry.

AMOLED Market will grow rapidly by annual average of 32% from 2016

It is forecasted that AMOLED market will show a rapid growth with an annual average growth rate of 32% from 2016.

According to “H1 2014 Half AMOLED Report” by a market research firm, UBI Research, the AMOLED market will be about 10 billion dollar in 2014. With average of 32% growth rate from 2016, it will grow to 46.5 billion by 2020.

The OLED market will record a low growth rate of about 10% in 2014 with the stop of rapid growth due to the delay of Samsung Display and LG Display’s investments in the OLED and the drop of its selling price.

However, it is expected that LG Display will place orders for Gen6 line for plastic OLED and M3 line for large size TV over 55 inches, as Samsung Display started to place an order for A3 line equipment for the flexible OLED in the first half of this year. Thus the market will turn to recovery from 2015 and the rapid growth will be continued again from 2016.

In the first half of 2014, market performance of the AMOLED panel has also recovered. The report showed that the sales of the AMOLED panel in the first half of 2014 was about 5 billion dollars with 21% growth rate from the previous quarter. It is considered that such growth was driven by the increased number of smartphone introduced with the AMOLED panel including Galaxy S5, unlike the previous quarter when the growth rate had decreased.

AMOLED market recovery with sales of 2.3 billion dollars in the Q1 2014

According to the Q1 2014 Quarterly Report by UBI Research, sales of AMOLED in 2014 grew to 2.3 billion dollars by 42% from the previous quarter. The total growth rate is 78% considering the 36% sales drop in the Q4 2013 from the Q3. It is analyzed that panel was shipped from extended equipment in A2 factory in the latter half of 2013 by adding Galaxy S5 to the existing items that Samsung Display (SDC) produces, and this led such growth. Although the quantity is small, LG Display (LGD) also constantly produces plastic OLED and 55” TV OLED panel so sales increases.

It is forecasted that LGD, which manufactures the plastic AMOLED for the mobile, will gradually expand its market share of the AMOLED panel market for mobile dominated by SDC as it took 2% of market share in overall sales of the AMOLED panel in the Q1.

LGD is the only maker who offers the 55” FHD panel in the AMOLED for TV and showed 50% growth in 2014 from the previous quarter. It is expected that the sales volume will increase by more than 60% in the Q2 from the Q1 with the increase of the OLED TV sales overseas by LG Electronics and the start of the OLED TV sales by Chinese TV makers.

Growth prospect of OLED lighting market to about US M$ 4,700 by 2020

It is expected that OLED lighting market will increase to about US M$ 4,700 by 2020.

According to “2014 OLED Lighting Annual Report” by UBI Research, investment of the OLED panel makers will begin from 2015 and the average annual growth rate will be about 100% from 2015 to 2020.

UBI Research forecasted that, “although the OLED lighting companies are continuously delaying the investment, a new product which has efficiency equal to that of LED will be on the market in 2015 and they will begin investment in full-scale as a result of analysis on the major OLED panel makers’ roadmap.”

The 2014 OLED Lighting Annual Report analyzed that the upcoming product will have the similar specifications as the current LED lighting has and the average target of the major OLED lighting panel makers in 2015 includes 100lm/W of efficiency, 5,000cd/m2 of brightness and 30,000hr of lifetime. LG Chem. with the most aggressive goal is expected to lead the OLED lighting market.

Solution Process OLED to be released from 2016

In 2013, the OLED industry reached a number of milestones;
– Annual display revenue exceeding US$10B
– Release of 2 flexible display smartphones and multiple curved OLED TVs
– Recognition as the best smartphone display in the industry
– Recognition as the best TV in the industry
– OLED Lighting panels exceeding 130 lm/W at 1,000 cd/m2

OLEDs are positioned to change a rather stagnant display industry and to offer a new range of solutions for the solid state lighting market. As a further demonstration of the industry’s growth, a third AMOLED supplier has entered the market and now more than ten Chinese flat panel producers, including BOE, Tianma, Visionox, Ever Display and others are planning to produce AMOLED displays and as early as Q4’2014. Korean companies with advanced technologies in flexible display are planning to integrate more devices with flexible displays in later year 2014. The OLED Lighting industry has been also reducing costs in order to commercialize OLED panels in both rigid and flexible formats. The lighting application is also ready to enter flexible era, which could enable creativity and innovation for new lighting formation.

At the 2nd Annual Korea OLED Workshop, OLED Association, UBI Research and key speakers from the AMOLED industry will address the most critical issues facing the industry, including:
– Use of flexible OLEDs and how this technology could be a game changer in the display and lighting industries.
– Phosphorescent vs. fluorescent material and the challenges associated with organic blue.
– A comparison of printing vs. vacuum thermal evaporation and LITI as a solution to bringing down long term costs.
– Expanding into applications beyond smartphones, TVs and smart watches.
– The use of RGB patterning vs. RGBW in manufacturing large area displays
– New approaches to cost reduction for making OLED lighting panels competitive with LEDs and traditional lighting.
– The major manufacturing issues holding up high volume mass production of Large OLED displays for TVs.
– The challenges of using amorphous metal oxides and the costs of converting a-Si 7thGen and larger Fabs to AMOLEDs.
– The role of Chinese, Taiwan or Japanese display and lighting manufacturers and whether they can catch up and be competitive in AMOLEDs, next generation OLED lighting, transparent and flexible.

[2014 2nd Korea OLED Workshop Program]

[Event guidance]
Event Name: 2014 2nd Annual Korea OLED Workshop
Date: Jun. 24(Tue). 2014 09:05 – 17:10
Venue: Seoul, COEX Conference Room(South) 308

OLED-A provides a forum for the interchange of technical and
market information. Our membership includes companies involved in small-molecule OLED technology and polymer technology (PLED or light-emitting polymers). OLED-A serves its membership by fostering the more rapid development of OLED technology and OLED products; serving as a resource on OLED markets and products for media and investors; functioning as a catalyst in the development of standards for OLEDs; and providing a forum to promote and market OLED technology products.

[About the UBI RESEARCH]
UBI RESEARCH has provided the consulting service to establish the business strategy and researching service of market and technology on all of supply chains that consist industries of flexible electronics, energy, and display and lighting including OLED based on professional consulting know-how accumulated since 2001. We run the only professional Internet Research Media for the OLED in the world as well as host seminars that offer contents focusing on biggest issues of the OLED industry, and the best information and network with experts from various fields.

22% Growth of 2014 OLED Luminescent Materials Market from the previous year

It is expected that the growth rate of the materials market which grew rapidly till 2012 will slow down to 2015 as the operation rate of Samsung Display (SSD)’s line declines due to the low sales of Galaxy S4. However, the market is projected to grow largely again in 2016 when the OLED TV market is forecasted to vitalize.

In “2014 OLED Emitting Materials Annual Report Market Forecast (~2020)” published by UBI Research, the OLED luminescent materials market is forecasted to grow to about 543 billion won by 22%.

The report analyzed the disclosed/registered patents for OLED Emitting materials in 2013 and the trend of material developments on luminescent materials by domestic and foreign companies. Korea topped with 423 patents by accounting for 47% of the total disclosed/registered 893 patents on OLED luminescent materials in 2013. It is analyzed that SSD topped the list with 79 cases and followed by Konica Minolta, SEL, Idemitsu Kosan and Canon in the total ranking by the number of disclosed/registered patent.

<Patent Share by Nation>

Analysis results on AI (Activity Index) of major companies from 2011 to 2013 showed that SSD is more concentrated on patents for increasing brightness while Idemitsu Kosan tends to focus on patents for blue host and improving lifetime.

<AI Analysis of Samsung Display and Idemitsu Kosan (2011~2013)>


AMOLED market expected to grow up to about 50% a year on average until 2020


[Market share of AMOLED in 2014 and 2020]

AMOLED market is expected to increase up to about 50% a year on average until 2020.

According to 2014 Annual AMOLED Display Report published by UBI RESEARCH, scale of AMOLED display market will be formed up to about $7 billion in 2014 and about $75 billion through approximately 50% a year on average.

Due to M2 line operated by LG Elec., AMOLED TV market will be formed in 2014 and after 2017 Chinese panel companies supposed to produc products in large quantity, it will surpass smart phone market.

Flexible AMOLED market is also expected to increase dramatically. As flexible AMOLED is predicted to be used for smart phone, tablet PC and smart watch, use of the flexible AMOLED will extremely increase after 2015 and be about 30 million units in 2016.

Since the AMOLED market is expected to grow rapidly, companies in Korea and China will keep investing in the product.

LG Display operates Gen8 M2 line in the second half of this year and investment in Gumi P6 line for flexible AMOLED will be made in the first half of 2014.

Samsung Display is expectedt to make a decision for A3 in 2014.

In China, six companis such ah BOE와 CSOT, Everdisplay, Tianma, Truly, Visionox are currently preparing for producing AMOLED in large quantity and especially, BOE and Everdisplay aim to produce small and medium sized AMOLED panel in the second half of 2014.

The report analyzes sales of AMOLED market in 2013, expects AMOLED market until 2020 and investigates the trend of main panel companies. It also researches trend of devices with AMOLED to help understand the main stream of AMOLED industry and presents business strategies for related comapanies.

White OLED Display market supposed to increase rapidly up to $32.3 billion until 2020

LG Elec. announced 77 inch UHD curved OLED TV and Samsung Elec. showed 55 inch one at IFA after they released 55 inch FHD curved OLED TV in 2013, which means that OLED TV has been enlarged and become high resolution.

Panel types currently applied for OLED TV can be classified under two types, WOLED of LG Elec. and RGB type of Samsung Elec. While RGB type of Samsung Elec. has trouble with being enlarged due to drooping substrate, WOLED of LG Elec. is able to apply for Gen8 원장 evaporation and easy to be enlarged. As companies to develop WOLED type have appeared to realize high resolution for small and medium mobile devices, OLED panel technologies are expected to change RGB into WOLED.

UBI RESEARCH analyzed technology development, investment plan and pattern of white OLED display companies in the world through “2014 White OLED Display Annual Report” and expected the market through simulation. It also presented guild lines for companies involved with rapidly changeable OLED markets by analyzing technology issues and patents of WOLED display.

According to the report, the WOLED display market will be formed $745 million in 2014 and increase up to $31,278 million until 2020, showing about 100% growth. 55 inch products will account for more than 70% market share until 2018 and be expected to be main application.

Mobile products with WOLED display will be expected to be released in 2015 and form roughly a $3,000 million market with 5 inch size.

With the growth of WOLED display, related equipment markets will dramatically increase. A $4,727 WOLED equipment market will be formed in 2017.

In 2014, investment to supplement a-si line into oxide line is expected, new investment will begin in 2015 and investment for Gen10 will start in 2017.

A $4 billion AMOLED manufacturing equipment market formed in 2014.

As smart phones with curved OLED TV and flexible AMOLED panel has released to improve AMOLED industry in 2013, sales of manufacturing companies has increased, which is expected to lead to expansion of AMOLED manufacturing equipment market.

A report on AMOLED equipment market UBI RESEARCH has published shows current state of technologies, investment plans and investment patterns of AMOLED companies in the world and predicts the market through simulation.

According to the report, AMOLED manufacturing equipment market will be expanded as a $4 billion one, focused by not only Samsung Display but also LG Display and BOE.

OLED manufacturing technologies will be changed from RGB type to OLED type. When it comes to wide screen, LG Display has already produced 77” screen. In the light of mobile area, white OLED type will be a main trend as well according to a trend towards high resolution. Following the stream of technologies, 38% 0f the equipment market will be occupied by equipment related to white OLED until 2014 and the market will be expected to increase up to 63%.

While oxide TFT accounts for most of the wide screen LCD industry, AMOLED for TV will be occupied by oxide TFT as well as a core technology. Even though LTPS TFT equipment market in 2014 is expected to be up to US M$ 1,453, equipment market for oxide TFT will be formed up to US M$ 2,334, as a doubled market of LTPS TFT equipment market.

The report also revealed that products with flexible AMOLED panel have increased as applications applied from smart phone to tablet PC and smart watch. Investment for manufacturing equipment related to flexible AMOLED will be climbing as well. In 2014, flexible AMOLED equipment market will be formed up to US M$ 1,093 and will be expanded up to US M$ 2,251 until 2018.

Greater picture quality of curved OLED TV, LG Electronics

As LG Electronics Inc. and Samsung Electronics Co., Ltd has released the same 55” curved OLED TV, products and technologies expected to lead TV markets draw attention within the industrial world and academic world.

LG’s product consists of four pixel WRGB able to show color through color filter with white OLED light while Samsung’s product realizes colors independently, producing RGB pixel respectively.

UBI RESEARCH has published a report to analyze picture quality of both companies’ 55” curved OLED TV and the report is expected forecast the direction of OLED TV products and technologies further. According to the report, the picture quality of OLED TV were analyzed with three different ways: picture quality characteristics based on panel construction, picture quality characteristics according to panel and image processing technology, picture quality characteristics according to image processing. Subcategories were evaluated with 16 features such as contrast ratio, color volume, vies angle, brightness and color temperature for display quality and image quality, and power consumption.

As OLED TV is different from LCD, the primary element to represent high quality display is how to express black color. Both products showed more than 100,000:1 contrast ratio which surpasses the limit of determination by measuring equipment. When it comes to external light (living room lightning: 200lx), LG’s curved OLED TV indicated 254 contrast ratio(ambient contrast ratio) and Samsung’s product showed 130 half numerical value of LG’s TV.

Curved OLED TV might display color changes due to bent side of the TV, color volume is significant according to viewing angle. Samsung’s product showed an excellent viewing angle for white and LG’s products was outstanding for red and blue. In the light of front side, Samsung’s product showed higher color volume feature while LG’s products was superior to Samsung’s TV for color volume according to viewing angle.

The reason Samsung’s curved OLED TV has lower viewing angle, color volume and ambient contrast then LG’s TV is assumed due to straight light by micro cavity applied to improve brightness of OLED TV panel and reflexibility of WAD film to reduce the straight light.

Samsung focused on sharpness for image expression of the TV, which showed great visibility of objects and LG concentrated on the ability to express black color, showing outstanding ability to divide low tone wedge section.

Even though Samsung’s product showed excellent brightness and definition, low picture quality was displayed due to excessive gamma correction to improve brightness with middle tone wedge level.

LG’s OLED TV was analyzed it is able to express an original image produced by producer of the contents with excellent tone wedge continuity.

The report is expected to be used a guideline for companies, research institutions and academic world when it comes to OLED panel industry.

 <Screen of LG Electronics Inc. TV showing excellent tone wedge continuity with black color for expression of characters and objects>