According to Omdia's forecast, OLED material annual revenue (excluding dopant revenue) is expected to exceed $2 billion this year, and will reach $2.6 billion by 2028.
According to the latest report from Omdia, the global OLED material market is about to recover after experiencing a downturn in recent years. Omdia's latest released "Q2 2024 OLED Material Market Tracking Report" indicates that the trajectory of the industry has undergone a significant change. Although the OLED material market continued to grow before 2021 due to the rapid expansion of OLED in the display market, it showed a decline for the first time in 2022. However, Omdia's latest analysis shows that the growth of OLED materials is showing signs of recovery, indicating a bright future for the industry.
Dr. Jimmy Kim, Senior Principal Analyst of Omdia Display, explained, "The decline is mainly due to the weak sales of OLED TVs in the terminal market. Compared with other OLED applications, OLED TVs have a larger unit area, which leads to higher material consumption in the manufacturing process. Although the shipment volume of OLED TVs is relatively low, they account for a large proportion of total OLED material consumption."
The chart shows a significant decrease in revenue for WOLED/QD OLED, while FMM RGB OLED remains relatively stable.
The revenue of OLED materials will slightly increase in 2023, but only reach a level similar to that of 2021. Kim pointed out, "The demand for the OLED TV terminal market has not fully recovered from last year's downturn."
This year, the utilization rate of WOLED factories seems to have increased. According to Omdia's "Q4 2023 OLED and LCD Supply Demand and Equipment Tracking Report", LGD's utilization rate of E4 production line in Paju, South Korea, increased to more than 60% in the first quarter of 2024, after falling to 33% at the end of 2022. The utilization rate of LGD's WOLED production line in Guangzhou, China, also increased to more than 50%. In addition, Samsung Display plans to maintain the operation of its QD OLED factory at more than 70% in the first half of 2024. "Therefore, we expect the OLED material revenue for WOLED/QD OLED to increase significantly this year," said Kim.
In contrast, since 2023, the material revenue of FMM RGB OLED has shown strong growth. This growth is due to the increased demand for materials from the latest iPad models of Apple (AAPL.US), as well as the continuous revenue brought by traditional iPhone displays. In addition, Chinese manufacturers are also increasing their consumption of OLED materials to meet the demand of the local display panel market. This trend is expected to prevent the overall decline in OLED material consumption and drive strong growth in the coming years. According to Omdia's forecast, OLED material annual revenue (excluding dopant revenue) is expected to exceed $2 billion this year, and will reach $2.6 billion by 2028.