Market Trends of OLED Microdisplay Industry
Consumer Electronics Segment to Hold Major Market Share
- The studied sector is predominantly driven by the increasing demand from the consumer electronics sector and fast-paced technological developments, which pressure OEMs to present unique products continuously in the market. Consumer electronics providers primarily rely on electronic manufacturers that deliver benefits such as cost savings, quality, decreased time-to-market, reduced time-to-volume, and flexibility to provide their products.
- The increasing demand for smartphones is also significantly driving the demand for the market studied. According to Ericsson, smartphone mobile network subscriptions reached nearly 6.4 billion globally in 2022 and are forecasted to exceed 7.7 billion by 2028. China, India, and the United States have the highest smartphone mobile network subscriptions.
- Additionally, the percentage of 5G smartphones is expected to increase by 2023.
- The penetration rate of OLED folding mobile phones will grow as display technology develops. The smartphone penetration rate will increase as brands launch new flagship folding devices regularly, driven by improved specifications and more affordable pricing. A chance exists to breathe new life into a market where inflation has resulted in a downturn in consumer confidence and pushed the adoption of folding mobile phones.
- According to the Consumer Technology Association, in the United States, consumer technology retail revenue is forecast to increase slightly between 2022 and 2024, reaching over USD 500 billion at the end of the period. Hardware is likely to account for most of the revenue, bringing in around USD 345 billion in 2024. The market is also witnessing several OLED microdisplay innovations and manufacturing capacity expansions to cater to consumers' complex and evolving requirements.
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Asia Pacific Expected to Witness Significant Growth in the Market
- The region is considerably investing in the market studied. Increasing adoption of applications in VR/AR and wearables and growing investments in consumer electronics across various countries further propelling demand for OLED microdisplay.
- Additionally, countries such as South Korea, China, and Japan are hubs for consumer electronics manufacturing and innovation. These countries are home to significant technology companies that drive advancements in display technologies, including OLED microdisplay. For instance, in August 2023, KIA launched the VR showroom to showcase new vehicle models to customers.
- OLED microdisplay are being increasingly adopted in various applications ranging from cameras, AR and VR glasses/goggles field, entertainment, industrial applications, and sports. The increasing demand for these products across most countries spurs the market's growth.
- Apart from countries like Japan, South Korea, and China, the growth of the electronics sector across countries such as India and Taiwan is favoring the market’s growth. The rising disposable income among the middle-class population across these countries also creates new opportunities for the market studied.
- The increasing urbanization and technological advancements in display screens create massive potential for OLED microdisplay in Asia-Pacific. According to the World Bank, in 2022, around a third of the total population in India lived in cities. The trend indicates an increase in urbanization by more than 4% in the last decade. Such an increase in population may further create demand for smart wearables and other advanced instruments like AR/VR headsets, and many others may further propel the growth of the market studied. Further, due to the presence of major players across the region, the growing adoption of advanced technology, capital investments, and rapidly growing economies contribute to the growth of the market studied.
- For instance, in August 2023, Sony Semiconductor Solutions Corp. (SSS) intended to release the ECX344A, a large-size, high-definition 1.3-type OLED Microdisplay with 4K resolution in the coming months, which would contribute to more realistic recreations of spaces. The new OLED Microdisplay mainly targets virtual reality (VR) and augmented reality (AR) head-mounted display applications. It delivers 4K resolution with a 1.3-type large-size display by employing miniaturization processes that SSS has achieved while developing camera electronic viewfinders (EVFs) and their pixel drive circuits.
- The constant innovation in OLED technology, leading to improved power efficiency and response times, has also contributed to the growing acceptance of OLED microdisplay in various regional sectors. In November 2023, Chinese panel supplier BOE Technology Group announced to build a CNY 63 billion (USD 8.84 billion) production facility to make OLED screens using advanced technology. The factory, planned for Chengdu, will turn out organic light-emitting diode substrates using 8.6-generation technology.
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