Thin Film Encapsulation Market Analysis | 2022-2028

Market Insights

The Thin Film Encapsulation Market was estimated at US$ 19.3 million in 2021 and is expected to grow at an impressive CAGR of 24.66% during 2022-2028 to reach US$ 91.64 million by 2028.

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What is thin film encapsulation?

Thin Film Encapsulation (TFE) is a technology used to protect the sensitive electronic components of a device, such as organic light-emitting diode (OLED) displays or flexible electronics, from environmental factors such as moisture and oxygen.

TFE involves depositing thin layers of protective materials, such as organic or inorganic compounds, onto the surface of the device. These layers act as a barrier to prevent moisture and other harmful substances from penetrating the device and causing degradation or failure.

COVID-19 Impact Analysis

The outbreak of COVID-19 significantly impacted the materials supply chains, international trade, and manufacturing operations across the world. The production of thin film encapsulation declined amidst the COVID-19 pandemic as the market players had to shut production facilities or operate the facilities below the optimal production capacities to avoid the spread of the coronavirus.

Key Players

The following are the key players operating in the thin film encapsulation market-

• Samsung SDI Co., Ltd. (South Korea)
• LG Chem Ltd. (South Korea)
• Universal Display Corporation (US)
• Applied Materials, Inc. (US)
• 3M (US)
• Veeco Instruments (US)
• Kateeva (US)
• Toray Industries, Inc. (Japan)
• BASF SE (Germany)
• Meyer Burger (Switzerland)
• Aixtron SE (Germany)
• Bystronic Glass (US)
• AMS Technologies AG (Germany)
• Angstrom Engineering (Canada)

Market Dynamics

The market is driven by a host of factors, some of which are noted below:

• OLEDs are becoming increasingly popular in lighting and display applications due to their high brightness, energy efficiency, and thinness.

• Increasing penetration of portable consumer electronics such as television and smartphones across the geographies.

• The growing demand for OLED lights due to their superior performance is likely to create lucrative opportunities for the players operating in the global market.

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Segments Analysis

Type

The market has been bifurcated into organic layers deposition & inorganic layers deposition. Under these, inorganic layers deposition accounted for a significant market share in 2021 & is expected to maintain its dominance during the forecast period. The inorganic layer plays a crucial role in safeguarding against oxygen and moisture, and it is deposited onto the device via PECVD, ALD, and sputtering processes.

The market for TFE is thriving due to major companies such as Applied Materials, Meyer Burger, and Aixtron, who are introducing PECVD technology-based equipment. In addition, ALD is a significant thin-film deposition technology because of its ability to create uniform, pinhole-free films with precise control over film thickness. This makes it possible to manufacture conformal thin films on any shape.

Application Trends

The market has been divided into flexible OLED displays, flexible OLED lighting, thin-film photovoltaic, and others. The flexible OLED display application segment occupied a market share of more than 55% in 2021 & is expected to remain the largest market for thin film encapsulation during the forecast period. The segment growth can be attributed to increasing demand for consumer electronics worldwide.

The rise in popularity of flexible OLED displays in well-known smartphones, including the iPhone 12, 13, and 14 series, Samsung Galaxy Series, and Xiaomi Note Series, as well as the increasing demand for these displays in AR/VR headsets like the Sony PlayStation VR2, Apple AR/VR Headset, and Oculus Quest 2, are projected to fuel the growth of this segment.

Regional Analysis

North America accounted for the largest share in 2021 and is expected to grow at a significant CAGR during the review period. The regional market growth can be attributed to the widespread product adoption rate and the presence of an established end-use industry in the region.

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The market growth in the Asia-Pacific region is expected to grow at the fastest CAGR during the review on account of surging demand for OLED lights and increasing penetration of TVs and smartphones coupled with the rising per capita disposable income of the consumers.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Target Audience

The target audience of the market includes-

• Thin Film Encapsulation Vendors
• Thin Film Encapsulation Manufacturers
• Thin Film Encapsulation Distributors
• Organizations
• Government Bodies

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.