Solution Process OLED to be released from 2016

The possibility to mass produce AMOLED panel in RGB structure by solution process was confirmed after the appearance of the solution process 4K OLED TV by Panasonic in 2013 and as AUO unveils the 65-inch FHD AMOLED panel at SID 2104 which uses hybrid process of employing inkjet printing method and deposition method simultaneously.

According to the Solution Process OLED Report 2014 issued by the UBI Research on the 26th, it is expected to release AMOLED panel by solution process by 2016 considering the stages of the process equipment and materials developments up to now.

The solution process is producing OLED by printing the material of liquid condition. The efficiency of the material usage in case of the existing RGB deposition method is as low as about 10%, requiring complicated processes and it is difficult to apply to the large area substrate.

The efficiency is theoretically 100% for the solution process, resulting cost saving and even the process of RGB method without cutting the substrate at the 8thgeneration line is possible.

However, there are remaining issues to be resolved as the material property is low compared to the deposition material and it is unavailable to produce high resolution panel.

The personnel from the UBI Research reported that the analysis shows the probability to produce from 8.4-inch FHD panel to 8K high resolution panel over 30 inches in RGB method for it is possible to print up to 300ppi as the printing error reduces. The present OLED panel for tablet PC has a resolution of about 262ppi because it was produced in PenTile method. Now, the large area panel as well as the RGB OLED panel for tablet PC are mass produces as a result of the solution process allowing up to 300ppi.

[Figure : The scope of panel available for the solution peocess]

Also the property of emitting material was improved. Assumed from the analysis of properties announced so far, the efficiencies of red and green among other emitting materials for the solution process are developed close to the deposition material. Especially for the green, the small molecular material for the solution process appears to be more efficient than the polymer material for the deposition.

“Considering the development level of the material and process equipment for the solution process, the AMOLED panel produced in the solution process will be released actively from 2016, and in view of the current line conditions of panel companies, the investment ability, and technical situations, it is expected to produce the AMOLED panel for the tablet PC at first” said the personnel from the UBI Research.

In addition, the AMOLED panel market for the solution process will be the size of $380 million with the average annual growth rate of 141% by 2017 as the material for the solution process is anticipated to have the full competitiveness by the same year.

What is the optimal encapsulation technology for the Flexible AMOLED?

Currently mass-producing flexible AMOLED panels are taking PI substrate, backplane, and RGB deposition method, and the existing encapsulation technologies for A2 line of Samsung Display is TFE (thin film encapsulation) and hybrid encapsulation for LG Display.

But for the flexible AMOLED exclusive A3 line which is newly invested by the Samsung Display, advanced the orders not in the TFE but in the hybrid encapsulation method which is laminating the film after resin coating process on the passivation structure of inorganic layer and organic layer, similar to the method that the LG Display takes.

The reason for the change of encapsulation technology at the A3 of Samsung Display was analyzed in the “2014 Flexible OLED Report” issued by the UBI Research including the latest trends and issues such as the flexible AMOLED related issues and processes, market forecast of the flexible AMOLED panel and flexible OLED lighting, flexible AMOLED technologies comparison of Samsung Display and LG Display, etc.

According to this report, the flexible AMOLED panel market is forecasted to show a compound annual growth rate of about 60% through to 2020, reaching $ 17,600 million where the primary applications are expected to be for the flexible AMOLED panel of tablet pc.


<Flexible AMOLED panel Market Forecast>

OLED TV cost saving, the alternative is co-planar structure

Current AMOLED panel market is mainly led by either Samsung Display or LG Display, mass producing the LTPS backplane for mobiles and Oxide backplane for TVs.

Though the AMOLED panel market for mobiles has established stable position in the business beyond LCD panel market, the market for TV is having difficulties in settling for its high price compared to the LCD/LED TV, requiring pressing technological development to lower the cost.

As a counterplan for this, the LG Display received a considerable attention at the SID 2014 by exhibiting 65-inch curved UHD OLED TV applying not the existing etch stopper layer (ESL) structure but the co-planar structure.

According to the UBI Research, it was analyzed that there is a difference in the investment expenses by about $ 80 million when making the additional investment in oxide TFT AMOLED line of co-planar for a-Si LCD line against the supplementary investment in oxide TFT AMOLED for LCD line. (For Gen 8) It was also suggested that the co-planar structure is appropriate for the oxide TFT structure which can make the best use of the backplane and color filter equipment of the previous a-Si LCD line as the mask can be used under 6 layers.

In addition, the core issue of the AMOLED industry which is a technological concern over the flexible LTPS applied to the flexible display was examined along with the latest technology trend analysis of LTPS, oxide, and organic TFT in the “2014 AMOLED Backplane Technical Report”.

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.