Emphasis on Type (Inorganic Layer, and Organic Layer); Application (Flexible OLED Display, Flexible OLED Lightning, Thin-Film Photovoltaic, and Others); Region/Country.
The Thin-Film Encapsulation market was valued at USD 121.3 Million in 2023 and is expected to grow at a strong CAGR of around 15.7% during the forecast period (2024-2032) owing to rising usage in Consumer Electronics and Solar companies.
The Thin-Film Encapsulation (TFE) market is vital in the evolution of the next generation, flexible electronics including OLED display, organic photovoltaics (OPVs), and wearable electronics. TFE technology means that thin flexible layers can be used to shield vulnerable portions of electronics from moisture and oxygen which improves their mean time between failures and their output. The market is mainly driven by the higher demand of flexible OLED display, which is widely used for smart phones, tablet PC, foldable apparatus and other electronic products. The obvious advancement in flexible electronics and wearable electronics, and especially in the emerging regions of North America, Asia-Pacific and Europe has increased the necessitation for better encapsulation solutions. Moreover, dynamic development of multilayer deposition technologies and an increasing popularity of smart products contribute to the market growth of TFE solutions.
Future projections of TFE market’s growth The Asia Pacific region specifically, China and Japan are expected to be key players in the TFE market because of their leading position in the OLED display industry. Thus, government strategies such as China’s Made in China 2025 are promoting the investment in OLED and flexible electronics production and, consequently, increasing the need for TFE. Moreover, India launched the Production-Linked Incentive (PLI) scheme in 2021 for Semiconductor and Display manufacturing industries the country is likely to become an ideal location for TFE industries. Such governmental factors coupled with greater demand for next generation electronics are believed to drive the TFE market with APAC dominating the market.
This section discusses the key market trends that are influencing the various segments of the Thin-Film Encapsulation market as identified by our team of research experts.
Rising Demand for Flexible OLED Displays
The use of flexible OLED displays is gradually expanding across practically all categories of consumer electronics, including smartphones, tablets, foldable devices, and wearable technology. The need for OLED displays is a result of the better display quality, efficiency, and the possibility to produce more slender devices than conventional LCD screens. However, OLED materials have very high sensitivity to moisture and oxygen which costs the OLED performance and shortened its life span. Thin-Film Encapsulation is a safeguard that has the capability of shield OLED displays from all the harsh factors in the environment, and therefore can be regarded as having high importance as far as the durability and performance of the devices is concerned. These issues are particularly important from the increasing use of flexible OLEDs for mobile devices that can be used anywhere, making the requirement for adequate encapsulation rapidly expanding as more manufacturers integrate flexible OLEDs into their products.
Example: One of the smartphones that utilize the flexibility of OLED displays is Samsung Galaxy Fold, a smartphone with a folding solution. As for these displays, it can be noted that they are rather responsive to moisture and oxygen kinds. Thin-Film Encapsulation has a significant purpose of shielding the super thin OLED layer from the undesirable effects of the environment which makes the device flexible, durable, and provides a high-quality display.
Growth in Wearable Technology
Smartwatches, fitness trackers, and health monitoring devices are among the most sought after wearable devices that has grown to become a lucrative market in the international market. Due to the physical construction of such devices and the manner in which they are used, these require displays that are light, thin, and robust. Thin-Film Encapsulation has a critical role in the manufacturing of wearables because it secures flexibility electronic parts from the adverse effects of moisture, sweat, flexibility, and mechanical pressure – which are typical characteristics of wearables. Ongoing innovation and implementation of wearable devices particularly in healthcare and fitness sectors are the key reasons that are increasing the need for more enhanced encapsulation techniques that are very vital in ensuring device durability and effectiveness.
Example: Smart Watch Apple is another technological innovation from Apple, and this one is a smartwatch which uses flexible OLED displays for its compactness. Many of these wearable devices are in contact with moisture, sweat and mechanical stress during the wearing process. TFE is employed to sealing off the OLED screen and the inside electronics against the intrusion of water and oxygen hence enhancing the durability and functionality of the device. The encapsulation is thus important in providing the Apple Watch the water proofing and functionality required under these different usage conditions that are important before fitness and health tracking can occur.
Increased Adoption of Thin-Film Photovoltaics
Thin-film photovoltaics or TFPV are gradually emerging as popular options owing to their relatively low cost and light weight compared to the conventional silicon solar panels. These solar cells are applied in BIPV systems, portable charger solar systems and in solar energy systems. Nevertheless, thin-film solar cells have some robust disadvantage which includes sensitivity to moisture, oxygen and UV light which do affect the efficiency and the durability of the cell. Thin-Film Encapsulation proposes a protection layer which improves durability and functionality of these solar cells under severe environmental conditions. Since the renewable energy segment is a rapidly expanding one especially in the light of the integration of sustainable policies across the globe, the use of TFE in thin-film photovoltaics is expected to increase exponentially in the future.
Example: First Solar, a manufacturer of thin-film solar panel, employs the CdTe technology to provide high efficiency and low cost solar modules. Thin-Film Encapsulation is most appropriate as it shields these photovoltaic cells from moisture and oxygen that is destructive to the cells. In encapsulating the solar cells First Solar can guarantee that its thin-film modules will work optimally in almost any locations and weather conditions since heat can be fatal for a solar cell module and moisture affects the performance of the solar panel in large energy project.
APAC is Expected to Grow with Significant CAGR During Forecast Period
The Thin-Film Encapsulation (TFE) market in the Asia-Pacific (APAC) is rapidly growing with China and Japan leading the region because of the growing investment in OLED technology and the booming electronics manufacturing industry. China, especially having invested heavily into OLED production and having domestic demands for flexible displays that are widely used in smartphones and TVs. Japan still remains as one of the leading nations in the field of R&D and innovations in various industries particularly OLED industry and its application to consumer electronics and the automotive industry. India is also emerging as a pivotal market due to its shifting focus on domestic manufacturing through its ‘Make in India’ program that can also support the manufacturing of OLED displays and other flexible electronics.
The Thin-Film Encapsulation market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market include Samsung SDI, LG Chem, Universal Display Corp. (UDC), Applied Materials Inc., Veeco Instruments Inc., 3M, Toray Industries Inc., Kateeva, BASF AG, and Meyer Burger Technology Limited.
Microdisplay manufacturer microOLED has received inkjet equipment for Sidtek from the inkjet printing firm of Unijet. The equipment is planned to be employed in the microOLED displays production by the Chinese company.
In April 2023, LG Display began developing a new etching technology for OLED panels that will be supplied to Apple. The technology is being prepared by the company to launch a so-called hybrid OLED panel, which uses a glass substrate like a rigid OLED panel but uses thin-film encapsulation (TFE) like that of a flexible OLED panel. Conventional rigid OLED panels used two glass substrates but in a hybrid OLED panel the top glass substrate is replaced with TFE.
The global Thin-Film Encapsulation market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Thin-Film Encapsulation Market Revenue (USD MN), 2022-2032F
7. Market Insights by Type
8. Market Insights by Application
9. Market Insights by Region
10. Value Chain Analysis
11. Competitive Landscape
12. Company Profiled
13. Acronyms & Assumption
14. Annexure
Analyzing the historical market, estimating the current market, and forecasting the future market of global Thin-Film Encapsulation were the three major steps undertaken to create and explore the adoption of Thin-Film Encapsulation in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the global Thin-Film Encapsulation market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of Thin-Film Encapsulation through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of Thin-Film Encapsulation, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. Major segments are included in the report, such as Type and Application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Thin-Film Encapsulation. Further, we conducted factor analysis using dependent and independent variables such as Type and Application of Thin-Film Encapsulation market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Thin-Film Encapsulation sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Thin-Film Encapsulation market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Thin-Film Encapsulation across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Thin-Film Encapsulation market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Thin-Film Encapsulation market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Type and Application in the global Thin-Film Encapsulation market.
The current & future market trends of the global Thin-Film Encapsulation market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the current market size and growth potential of the Thin-Film Encapsulation market?
Q2: What are the driving factors for the growth of the Thin-Film Encapsulation market?
Q3: Which segment has the largest share in the Thin-Film Encapsulation market by Application?
Q4: What are the emerging technologies and trends in the Thin-Film Encapsulation market?
Q5: Which region will dominate in the Thin-Film Encapsulation market?
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