The OLED materials market will grow 40% this year to be worth US$1.754 billion in 2021, according to market research firm Omdia.
This is substantially higher than the 16% growth rate in 2020.
Omdia’s data combines materials used for white OLED made by LG Display, quantum dot (QD)-OLED made by Samsung Display and RGB OLED used in smartphones.
The research firm said high demand for OLED smartphones, increase in OLED TV shipment, the production of QD-OLED and increased application of OLED for PCs will fuel the growth in the OLED materials market this year.
Demand from OLED smartphone will benefit from the expansion of 5G into budget models and the expanded production of Gen 6 OLED factories in China, which were delayed from the COVID-19 pandemic last year.
LG Display is expected manufacture 7 million units to 8 million units of large-sized OLED panels, which is up to 80% higher than its shipment of 4.5 million units in 2020.
Samsung Display is developing QD-OLED technology so that it can begin commercial production next year.
Materials sued in small-sized RGB OLED will account for 70% of the total OLED materials market this year. This sector will grow 29% this year.
Those for large-sized OLEDs, like white OLED and QD-OLED, will grow 69% to be worth US$541 million this year. Large-sized OLED material will account for around 30% of the total OLED materials market this year.
Material demand for white OLED and QD-OLED were quickly rising, Omdia said.
The increase in efficiency of the blue OLED material will the most important challenge to overcome in the sector.