Status : Published Published On : Jun, 2021 Report Code : VRSME9005 Industry : Semiconductor & Electronics Available Format : Page : 157

Global Thin Film Encapsulation Market – Analysis and Forecast (2021 – 2027)

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)

Industry Overview

The thin-film encapsulation market was valued at USD 22.1 million in 2019 and is anticipated to reach USD 110.2 million by 2027, growing at a CAGR of 25.1% during the forecast period 2021-2027. The thin-film encapsulation (TFE) is an emerging and evolving form of technology and the growth of this market is characterized by the implementation of flexible OLED displays for wearable devices and smartphones, as well as the rising trends related to the use of thin-film encapsulation combined with inkjet printing.

Thin-Film Encapsulation (TFE) can use thin-film barriers to replace the front glass in OLED devices. The nature of OLED material is highly susceptible to degradation and is unprotected by environmental factors such as air and water. In addition, increasing investment in OLED technology and manufacturing facilities is projected to create many opportunities for the growth of the global thin-film encapsulation market.

Thin Film Encapsulation Market Highlights

The outbreak of the COVID-19 pandemic has led to a decline in the growth rate of the thin-film encapsulation market, owing to the reduced manufacturing of products that use these batteries. Additionally, the COVID-19 pandemic has also disrupted the supply chain of the battery industry, thereby hindering the manufacturing and distribution of thin-film encapsulation market.

Market Segmentation

Insight by Technology

Based on technology, the thin-film encapsulation market is bifurcated into inorganic layers and organic layers. Inorganic layers are further sub-segmented into ALD, PECVD, and others whereas organic layers are sub-categorized into vacuum thermal evaporation (VTE) and inkjet printing. Of these two technologies, the organic layer is anticipated to dominate the market during the forecast period in the thin-film encapsulation market, globally. The growth of this market segment is attributed to the benefits provided by these layers such as reduced fabrication cost and smooth plastic lasers. In addition, a recent study predicts that flexible organic layers, development in electronic devices, and technological developments are providing huge benefits to various industries and users in developed economies.

Moreover, the wide use of thin-film encapsulation in inkjet printing and the rising demand for inkjet printing in various sectors such as commercial, education, etc. have contributed effectively to the growth of the thin-film encapsulation market 

Insight by Application

Based on application the thin-film encapsulation market is divided into flexible OLED lighting, flexible OLED display, thin-film photovoltaics, and others. The flexible OLED display market is further sub-segmented into smart wearables, smartphones and telephones and signage. The flexible OLED display finds largest application in the thin-film encapsulation market as key players are developing encapsulation material for elastic OLED displays. Furthermore, the thin-film encapsulation market for OLED lighting applications is anticipated to experience fastest growth during the forecast period owing to the adoption of OLED lightings in automotive applications.

Industry Dynamics

Trends

The increasing use of thin-film solar cells, rising investment in the OLED manufacturing facilities and research activities along with major OLED display panel suppliers are the main trends in the growth of the thin-film packaging market. In comparison to traditional solar cells, thin-film solar cells are easier to handle and flexible.

Growth Drivers

The increasing adoption of flexible OLED displays for smart wearables and smartphones, rise in demand for microelectronics and consumer electronics products, thin-film encapsulation using inkjet printing technology, and requirement for thin-film devices in organic as well as flexible devices are the major factors that drive the growth of the thin-film encapsulation market.

Opportunities

The widespread acceptance of high-efficiency, thin-film solar cells has increased due to the massive investment in building OLED business facilities and roll-to-roll production of OLED lighting, thus creating lucrative opportunities for the growth of the global thin-film encapsulation market. 

Challenges

The augmented growth of flexible glass acts as a restraint, whereas the essentiality of practical knowledge and the need to protect knowledgeable properties pose major challenges to market players. The emergence of new technologies such as inkjet printing and atomic layer deposition (ALD) have intensified the research activities related to flexible organic devices and will affect the thin-film encapsulation market over the projected period. The raw material license cost, equipment cost, and optimization of various processes have further affected the thin-film encapsulation market. 

Industry Ecosystem

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

Geographic Overview

Geographically, Asia-Pacific accounts for the largest revenue to the thin-film encapsulation market, worldwide. The major display panel and brand product manufacturers are established in Japan, China, Hong Kong, South Korea, and Taiwan. Additionally, South Korea is anticipated to have the fastest growth during the forecast period due to the presence of key players such as Samsung and LG operating in the thin-film encapsulation market. The demand for thin-film encapsulation is witnessing substantial growth in China owing to the widespread adoption of CSOT and BOE technology that provides the market players in developing flexible OLED panels. 

Europe is experiencing the second-largest growth in the thin-film encapsulation market due to the increasing investment by the government for OLED lighting research and widespread acceptance of OLED lighting solutions in the automotive industry.

Competitive Insight

The market for thin-film encapsulation is consolidated and the major players operating in the thin-film encapsulation market include 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.

LG Chem and Idemitsu Kosan collaborated to share patents relating to OLED technology. The firms pool their OLED materials, technology, and knowledge, and collaborate on the development of novel materials and material testing. They also employ their evaluation and production facilities in tandem.

Tianma Micro-electronics Co. Ltd., a prominent leader in AMOLED technology and a small- and medium-sized display panel producer in China, inked an OLED Technology License Agreement and Supplemental Material Purchase Agreement with Universal Display Corp. It's a five-year deal that will assist Tianma to grow its commercial OLED product pipeline by combining UDC's unique OLED technology and materials with Tianma's commercial OLED product pipeline. Universal Display offered Tianma non-exclusive licensing rights for different patents owned or controlled by the firm to manufacture and sell OLED displays under the terms of the license agreement.

Thin Film Encapsulation Market Size and Market Analysis

Source: VynZ Research

Frequently Asked Questions

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.
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.
On the basis of technology, 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 global thin film encapsulation market is predicted to witness a CAGR of 25.1% during the forecast period.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Thin Film Encapsulation Market