Organic LEDs are a fantastic example of how quickly consumer preferences evolve with technological advancement. Having improved leaps and bounds since the launch of LCDs, technology has enabled production on a massive scale. It has made the OLED displays priced competitively if not less than the traditional LCD.
Using organic materials to produce light, OLED displays contain several types of organic molecules that produce colors. OLED displays do not require backlights and filters, unlike LCDs. The OLED Display Market in the APAC Region is nearing commercialization, and TechNavio studies have forecast that it would grow at a CAGR of 41.7 percent for the 2013-2018 period.
As the market grows, increased demand is anticipated for other applications such as PIDBs, automobile head units, fabric displays, and others. Soon, OLED displays are expected to cannibalize upon the LCD market in APAC region. Currently, OLED displays are generating huge demand from smartphones, but in the future the demand from TVs and PCs is set to rise.
Just like Americas, the OLEDs incorporation in consumer electronic products has emerged as the biggest market driver in APAC. But as recent trends indicate, OLED lighting solutions are also gaining popularity. Various other applications of OLED displays are also gaining prominence here. The Automotive sector too has significantly invested in R&D to make the best use of OLED displays in automobiles.
Market speculation on Apple adopting AMOLED displays for its next-generation iPhones and iPads, has also had a positive impact. As the market progresses, the demand for large-screen OLED display is expected to grow substantially.
TechNavio analysts indicate that the Per SQ Meter cost of OLED displays would reduce further. And manufacturers will be able to reach economies of scale because of mass production of OLED TVs and PIDBs.
Let’s have a look at 4 key market drivers as highlighted by TechNavio analysts, which would set the tone of growth for The OLED display Market in the APAC Region:
Increased Adoption of AMOLED Displays
There has been an increase in the adoption of AMOLED displays in smartphones. AMOLED displays have unique features such as high resolution and ultra-high-clarity, which enhance the user experience. AMOLED displays started gaining popularity when they were first used in the Samsung Galaxy S smartphones in 2010.
Subsequently, AMOLED displays are being used by many manufacturers, including LG, Micromax, Motorola, and Microsoft. Samsung has now developed Super AMOLED, which is less reflective and consumes lesser power than AMOLED. Most smartphones in the future, including Apple, are expected to be rolled out with AMOLED screens, thus driving the growth of the market. Smartphone penetration is increasing in the APAC region, which will in-turn increase the demand for AMOLED displays.
High Vendor Concentration
The APAC region is home to a large number of vendors that are directly or indirectly contributing to the growth of the OLED display market. About 47.1 percent of all vendors involved in the OLED display market are based out of this region. This poses several advantages for the OLED display market in the APAC region. Firstly, the logistics cost is reduced greatly as shipping costs of OLED displays within the APAC region are much lower compared with shipping them outside the APAC region.
Secondly, several economies within the APAC region have FTAs that facilitate the import and export of various commodities including OLED displays. This reduces the tax paid by the manufacturers and facilitates easy trade. All these advantages are ultimately passed on to consumers in terms of reduced prices for OLED display products, which increases the demand for OLED displays.
Multiple Advantages
The high growth rate of the OLED display market in the APAC region can be attributed to a host of benefits the OLED display units carry. OLED displays are thinner, lighter, flexible, and emit brighter colors compared with other existing display technologies.
They do not require a backlight, unlike LCDs or LEDs, and have a high response time of 0.01 milliseconds. OLED displays are flexible, and curved OLED TVs and mobile devices, which make use of this feature, offering better viewing angles to users. Also, they consume less power, as organic material is made up of phosphorescence, which has a better conversion rate than LCDs.
Demand for Eco-friendly Electronic Products
Many global organizations and governments have implemented various industry standards that focus on reducing carbon emissions. To comply with these regulations, manufacturers are focusing on producing goods that have fewer negative effects on the environment. OLEDs are one option for display manufacturers. They consume less power and use organic materials that are eco-friendly.
Raw material consumption for OLED displays is also lower. Further, disposing of an OLED display is less risky and less harmful compared with other display technologies. All these factors are pushing the demand for OLED materials.
