One billion dollars worth of OLED-TV sets were sold last year, seven times the sales in 2014, according to a recent IHS report. Ninety percent of that market belonged to LG, but Shin Hyun-jun, an analyst with LIG Investment & Securities Co., expects Samsung to enter the OLED-TV market in late 2017, according to a story to a late-February story from South Korea’s Yonhap News Agency.
This increase in TV sales drove a 12% increase in light-emitting OLED materials last year for a yearly total of 26,000 tons, according to the latest issue of IHS’s “OLED Materials Market Tracker. Revenues from these materials were $465 million, and IHS expects them to reach $1.8 billion in 2018.
Kihyun Kim, IHS Technology’s senior analysis for chemic materials research, said “The market for small and mediium OLED displays is stable, and OLED TV shipments are increasing, which is supporting OLED light-emitting materials market growth. Shipments of organic light-emitting materials for WOLED are expected to increase with along with WOLED TV shipments, as more manufacturers are planning to adopt the technology. WOLED materials are expected to outstrip final-metal-mask red-green-blue (FMM RGB) materials in 2017 for the first time.”
That means that for the first time OLED-TV will be the primary driver of OLED materials sales, not cell phones and tablets, and that change will be remarkably rapid — after years of not being rapid at all. FMM RGB materials took 82% of the market last year; WOLED will take 51% of shipments in 2017 and 55% in 2018, predicts IHS. Revenue growth for WOLED materials will be greater than shipment growth because WOLED materials remain more expensive than FMM RGB materials for now.
Samsung’s initial foray into OLED-TV was forced by LG’s agressive leap into WOLED-TV sets. LG used ists FMM RGB technology, and quickly withdrew from the market, saying the technology was not yet ready for commercial involvement. In the last year, Samsung has ramped up its OLED-TV develop program significantly. Initial reports indicated that Samsung was pursuing a WOLED approach generally similar to LG’s. More recently, “remorts” (more than a rumor but not quite a report) have indicated a parallel development program for FMM RGB TV panels, which could use some kind of hybrid approach.
OLED-TV is also riding one of the overall TV market’s bright spots: 4K TV. (All of LG’s 2016 OLED-TVs are 4K). Half of 55-inch-and-larger TV shipments were 4K, and even at screen sizes of 48 to 50 inches, the 4K share was 30%, according to the latest IHS “TV Sets Market Tracker.”
For 2016, LG announced that their OLED-TV offerings will consist of a number of sets in several families, rather than only. This marks the evolution of OLED-TV into a product line-up appealing to a wider range of consumers at a wider range of price points. The strategy is being supported by the construction of a new advanced-generation panel fabrication facility.
At CES, LG’s top-of-the-line 4K UHD Premium sets were clearly “best in show.” With improving panel yields and significantly increased manufacturing capability, and with competition from Samsung just over the horizon, prices will continue to decline and will drive significantly increasing material, panel, and TV-set sales. Finally, OLED-TV as a premium mass-market product is within sight. OLED-TV is Real.
The post OLED-TV Is Real: Sales Reached $1 Billion Dollars in 2015 appeared first on HDTVexpert.
Posted by Ken Werner, March 9, 2016 2:10 PM
About Ken WernerKenneth I. Werner is the founder and Principal of Nutmeg Consultants, which specializes in the display industry, display technology, display manufacturing, and display applications. He serves as Marketing Consultant for Tannas Electronic Displays (Orange, California) and Senior Analyst for Insight Media. He is a founding co-editor of and regular contributor to Display Daily, and is a regular contributor to HDTVexpert.com and HDTV Magazine. He was the Editor of Information Display Magazine from 1987 to 2005.