Global Thin Film Encapsulation Market – Analysis and Forecast (2018 – 2024)

Industry Insights by Technology (Inorganic Layers (ALD, PECVD and Others) and Organic Layers (Vacuum Thermal Evaporation and Inkjet Printing), by Application (Flexible OLED Lighting, Flexible OLED Display, Thin Film Photovoltaics and Others)

Status : Upcoming
Report Code : VRSME9005
Available Format : PDF
Industry : Semiconductor & Electronics

Industry Overview

The global thin film encapsulation market is predicted to witness a CAGR of 24.8% during the forecast period. The growth of this market is attributed towards excessive implementation of flexible OLED displays for smart wearables and smartphones along with increasing trend pertaining towards utilization of thin film encapsulation along with inkjet printing.

Thin-film encapsulation (TFE) has the prospective to substitute the front glass in an OLED device with the use of a film barrier that is thin. The OLED material is relatively vulnerable to deprivation while unprotected to environmental factors such as air and water. Moreover, mounting investments in the manufacturing amenities and OLED technology is expected to create ample opportunities for the growth of thin film encapsulation market across the globe.

Market Segmentation

Insight by Technology

On the basis of technology, the thin film encapsulation market is segmented into inorganic layers and organic layers. Inorganic layers are further subcategorized into ALD, Pecvd and others whereas organic layers are sub categorized into vacuum thermal evaporation and inkjet printing. Among these two technologies organic layer is expected to contribute larger revenue in 2017 and is expected to witness significant growth during the forecast period in the thin film encapsulation market, globally. The growth of this segment is attributed towards the benefits providing by these layers such as reduced fabrication cost and smooth plastic lasers.

Additionally, according to a recent study it has been predicted that flexible organic layers, advancement in electronic devices and technological advancements are providing enormous benefits to various industries and users in developed economies. This is further expected to contribute effectively towards the growth of the thin film encapsulation market.

Insight by Application

On the basis of application the thin film encapsulation market is segmented into flexible OLED lighting, flexible OLED display, thin film photovoltaics and others. The flexible OLED display market is further sub categorized into smart wearables, smart phone and telephone and signage. OLED display finds largest application in the thin film encapsulation market owing to key players developing encapsulation material for elastic OLED displays. Moreover, the thin-film encapsulation market for OLED lighting applications is expected to witness fastest growth during the forecast period.

Industry Dynamics

Trends

Extensive use of thin film solar cells along with leading OLED display panel suppliers are the major trends observed in the growth of the thin film encapsulation market. The thin film solar cells are comparatively easier while handling and flexible as compared to conventional solar cells.

Growth Drivers

Extensive adoption of flexible OLED displays for smart wearables and smartphones and requirement for thin-film devices in organic as well as flexible devices are the major factors that are driving the growth of the thin-film encapsulation market. Moreover, expansive acceptance of high-efficiency thin film solar cells, increasing production capabilities of OLED lighting and huge amount of investments attributed towards manufacturing units of OLED that is further expected to generate excessive opportunities for the growth of thin film encapsulation market across the globe.

Challenges

The expansion of flexible glass acts as a restraint, whereas the essentiality of practical knowledge and need to protect knowledgeable properties pose major challenges to market players. The newer technologies such as inkjet printing and atomic layer deposition (ALD) are projected to effect the thin film encapsulation market during the forecast period. The cost of the raw material license, cost of equipment, and optimization in various procedures have further directed the thin film encapsulation market.

Industry Ecosystem

Globally industry players in the thin film encapsulation market are leveraging market growth through new product development, mergers & acquisitions, partnerships, increased investments and technological upgradation that is exaggerating the market demand for thin film encapsulation market across the globe.

Geographic Overview

Geographically, Asia-Pacific have contributed largest revenue to the thin film encapsulation market, worldwide. It has been observed that there are several manufacturers of brand and various display panels that are established in Japan, China, Hong Kong, South Korea and Taiwan. Additionally, South Korea is expected to witness fastest growth during the forecast period owing to the existence of key players operating in the thin film encapsulation market of this industry such as LG display and Samsung.

The demand for thin film encapsulation is witnessing significant growth in China owing to expansive adoption of CSOT and BOE technology that enabling the market players in developing OLED panels that are flexible in nature.  Europe is observing second largest growth in the thin film encapsulation market owing to extensive acceptance of OLED solutions of lighting in the automotive domain and increasing investments avenue undertaken by the government authorities for lighting research of OLED.

Competitive Insight

The market for thin film encapsulation is consolidated and the key players in the thin film encapsulation market includes Samsung SDI, Applied Materials, LG Chem, 3M, Universal Display Corp. (UDC), Veeco Instruments, Toray Industries, Aixtron, Kateeva, BASF SE, AMS Technologies, Meyer Burger, Bystronic Glass, and Angstrom Engineering.

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