OLED displays find success in mobile phones with Q2’09 revenue at $192mn

AUSTIN, USA: In its latest Quarterly OLED Shipment and Forecast Report, DisplaySearch reported that worldwide OLED revenue has set a new record, with $192 million in revenue for Q2’09, up 32 percent Q/Q and 22 percent Y/Y.

DisplaySearch forecasts the total OLED display market will grow to $6.2 billion by 2016 from $0.6 billion in 2008, with a CAGR of 33 percent. Mobile phone main displays will be the leading application with revenues of about $3 billion in 2016; OLED TV will be the second largest application, with revenues of about $2 billion in 2016.

Fig. 1: OLED Display Revenue ForecastSource:DisplaySearch Q3’09 Quarterly OLED Shipment and Forecast Report.

AMOLED shipments grew due to strong mobile phone main display shipments. This is due to promotion of AMOLED mobile phones by Samsung Electronics, Nokia and Sony Ericsson in the first half of 2009. More than 15 mobile phone models with AMOLED main displays were released in 2009.

PMOLED maintained its unit shipment leadership in the OLED display market. After a weak Q1’09, PMOLED shipments stabilized in Q2’09 due to growth in mobile phone sub-display applications.

Samsung Mobile Display (SMD) had a strong Q2’09, and as a result, it maintained the #1 position in shipment with 38 percent market share, followed by RiTdisplay at #2.

“AMOLED displays have become an important differentiating feature for high end electronic products,” noted Jennifer Colegrove, PhD, Director of Display Technologies at DisplaySearch.

“This technology is not only used for mobile phone main displays, but has also penetrated the market for portable media players, digital still cameras and other applications. There will be about 20 new or upgraded AMOLED production lines installed or upgraded worldwide in the next three years,” Colegrove added.

OLED manufacturers are planning to make TV panels larger than 11” in 2009. LG Display is mass-producing small-size AMOLED, and has announced that it will mass-produce 15” AMOLED panels for TV application at the end of 2009. LG Electronics will commercialize 15” OLED TV sets for the holiday season, while Sony’s 20”+ OLED TV announced in 2008 will not reach the market in 2009.

With technology improvements, DisplaySearch forecasts AMOLED will enter more medium- and large-size applications (Fig. 2).

Fig. 2: AMOLED Display RoadmapSource:DisplaySearch Q3’09 Quarterly OLED Shipment and Forecast Report.

Notebooks are an attractive area starting in mid 2010, with mini-notes (netbooks) expected to be in production by end of 2010. 20-29” OLED TVs will enter market by the end of 2010, with 30” and larger TVs forecast to enter the market in late 2011.

LED backlight penetration in LCD TVs to grow to 40pc in 2013

AUSTIN, USA: The LED backlight market has rapidly emerged in the TFT LCD industry and is expected to continue growing for the next five years, according to DisplaySearch’s latest Quarterly LED & CCFL Backlight Report.

Specifically, DisplaySearch forecasts the penetration rate of LED backlights for LCD TVs to grow from less than 3 percent in 2009 to 40 percent in 2013 and surpass CCFL backlights in 2014 with more than 50 percent penetration rate.

Meanwhile, large-area LED backlight shipments for all applications will grow from 84.9 million units in 2009 to 434.8 million units in 2013, when LED backlights will be used in 54.3 percent of 10”+ TFT LCD panels. Thus, LED backlights will become mainstream in the TFT LCD industry.

While LED backlights for LCD TVs are growing rapidly, notebook PCs are the leading application for large-area LED backlight units. DisplaySearch forecasts that 100 percent of all new notebook models will have LED backlights by 2012. Fig. 1 shows the large-area LED backlight penetration in each application.

Fig. 1: Large Area LED Backlight Unit Penetration Rate by ApplicationSource: DisplaySearch Q2’09 Quarterly LED & CCFL Backlight Report

Backlight units for LCD TV are expected to be the next growth opportunity for the LED industry, with leading brands such as Samsung, LG, Sharp and Philips all expected to mass produce LED backlit LCD TVs in 2010. As a result, LED backlight units for TVs will grow to 3.6 million units in 2009 and 15.1 million units in 2010.

Companies like Samsung are focusing on the development of edge-lit LED backlights, which can reduce the bill of materials by 30-40 percent compared to direct-lit models. “Edge-lit LED backlight units for LCD TV are a temporary solution to drive costs down to open market acceptance for ‘LED TV’ as short-term marketing strategy,” noted Luke Yao, DisplaySearch Research Director.

“Consumers want a low-cost solution with acceptable picture quality, but aren’t always willing to pay a higher premium—making edge-lit LEDs an ideal near-term solution.”

For the monitor segment, cost and performance remain bottlenecks for panel manufacturers creating LED backlit monitors. Taiwanese panel makers like AUO and Innolux have been the most aggressive in developing LED monitor panels.

Since LED monitor panel sizes (18.5”W, 21.5”W, 23.6”W and 24”W) are also used for TV, DisplaySearch refreshed its forecasted penetration rate for LED monitor backlight units to 21 percent in 2013.

Currently panel makers are putting efforts into shrinking the LED backlight premium to $3-5 for 18.5”W panels. From 2010, we expect that LED backlight monitors will be developed and supported by brand name makers.

Global OLED revenues to reach $7.1 billion by 2016

AUSTIN, USA: In its latest Quarterly OLED Shipment and Forecast Report, DisplaySearch forecasts the total OLED display market will grow to $7.1 billion by 2016, from $0.6 billion in 2008, with a CAGR of 36 percent.

DisplaySearch also reported that in Q1’09 worldwide active matrix (AM) OLED revenue surpassed passive matrix (PM) OLED for the first time. AMOLED revenue is increasing strongly due to strong mobile phone main display shipments, as Nokia, Samsung Electronics, and Sony Ericsson heavily promoted AMOLED mobile phones in first half of 2009. More than 10 mobile phone models with AMOLED main displays have been released in 2009.

PMOLED has been the revenue leader in the OLED display market, driven by high unit shipments. However, in Q1'09, PMOLED shipments were down significantly due to weakness in MP3 and mobile phone sub-display applications.

“AMOLED displays have become an important differentiating feature for high end electronic products,” noted Jennifer Colegrove, PhD, Director of Display Technologies at DisplaySearch.

“As we forecasted, AMOLED revenue surpassed PMOLED revenue in Q1’09, and AMOLED is likely to pass PMOLEDs in terms of unit shipments in 2010. There will be about 20 new or upgraded AMOLED production lines installed or upgraded worldwide in the next three years,” Colegrove added.

Fig. 1: OLED Display Revenue ForecastSource: DisplaySearch Q2’09 Quarterly OLED Shipment and Forecast Report

The company also reported that worldwide OLED display revenue in Q1’09 was $143 million, down 8 percent Q/Q. AMOLED revenues were up 17 percent Q/Q.

Samsung Mobile Display (SMD), created from Samsung SDI’s OLED business and Samsung Electronics’ mobile display business, started operation in January 2009. SMD had a strong Q1’09, and as a result, it kept the #1 position in shipments with 37 percent market share, followed by RiTdisplay at #2.

OLED manufacturers are planning to make TV panels larger than 11” in 2009; LG Display is mass-producing small-size AMOLED currently, and has announced it will mass-produce 15” AMOLED panel for TV application at the end of 2009. LG Electronics announced that it will commercialize 15” OLED TV for the holiday season (Table 1).

Table 1: AMOLED TVs Planned for the 2009-2010 Holiday SeasonSource: DisplaySearch

LEDs’ bright green future!

AUSTIN, USA: Light emitting diodes (LEDs) have been a hot topic in the TFT LCD market due to their rapid adoption in notebook PC displays and the high potential in LCD TV panels.

As consumers and businesses across the globe look for greener alternatives, five key applications are adopting LEDs within LCD backlight applications: small/medium, notebook PC, desktop monitors, industrial applications, and most notably TV.

The newly released Display LEDs: Lighting Up the Display World report covers:
* LED development roadmaps.
* LED manufacturing technology.
* Supply chain relationships and application information.
* LED market forecasts of price and demand by application.
* Detailed forecasts of shipments of LED backlights by application, size and LED type through 2012.
* Analysis of LED backlight value chain by panel maker.

This unique report is the most comprehensive way to learn about LED technology and access the latest market outlook for LEDs by application, making it a key guide for branded vendors, panel buyers, LED application product planners, and LED makers.

34 billion LEDs for TFT LCD backlights in 2012

AUSTIN, USA: Light emitting diodes (LEDs) have been a hot topic in the TFT LCD market due to their rapid adoption in notebook PC displays and the high potential in LCD TV panels.

In 2012, 34 billion LEDs will be used in TFT LCD backlights, in sizes ranging from 1” to more than 70”, up more than 300 percent from 8 billion in 2008, according to the new DisplaySearch report Display LEDs: Lighting Up the Display World.

A total of 70.8 billion LEDs were shipped in 2008 (see Table 1). There are two categories of LEDs used in display applications; active outdoor displays, which used 11 billion LEDs or 15 percent of the total in 2008, and LCD backlights, which consumed 8 billion or 11 percent of the total. Within LCD backlight applications, five key types are adopting LEDs: small/medium, notebook PC, desktop monitors, industrial applications, and most notably TV.

Table 1: LED Demand by Application (Millions of Units)Source: DisplaySearch Display LEDs: Lighting Up the Display World

With the fast growth in LED outdoor displays and backlights, DisplaySearch forecasts that display LEDs, including 24 billion for active outdoor display and 34 billion for LCD backlights, will have a 34.7 percent share of the global 167 billion unit LED market in 2012, making display LEDs the largest market segment.

Low-current LEDs will be the mainstream type used in large-area LCD backlights, due to cost, thermal management and luminance efficiency requirements. High-power LEDs, with a driving current higher than 350 mA (more than 1W), are not well-suited for LCD backlights due to thermal issues, and will mainly be used in general lighting applications that require high brightness.

Shipments of LED backlights for large-size (10”+) TFT LCDs will exceed 368 million in 2012, an amazing 25 times 2008 shipments (Fig. 1). For LCD backlights, side-view LEDs enable slim design, and dominate small/medium LCD backlights.

Large-size (10”+) LCD backlights typically use top-view LEDs, and with the increased penetration of LED backlights in notebook PCs and increasingly TVs, top-view LED shipments will pass side-view in 2010.

Fig. 1: Large Size (10”+) LED Backlight Shipments by Application (Thousands)Source: DisplaySearch Display LEDs: Lighting Up the Display World

The penetration rate of LED backlights in notebook PCs will reach 52 percent in 2009, and DisplaySearch forecasts penetration will grow rapidly to 81 percent in 2010.

In LCD TV, the penetration rate will ramp up from 3% with 3.6 million units in 2009 to 10 percent with 15 million units in 2010. Leading LCD TV brands including Samsung, Philips, Sharp, Sony, Toshiba, Vizio and LG are planning increased use of LED backlights starting in the second half of 2009.

A driving factor is the change in LED backlight structure from direct to edge light type, which reduces the cost premium over CCFL backlights. Finally, LED backlights in desktop monitors are expected to reach 31 million units in 2012.

Eyeing the growing LED needs for their panels, nearly all panel makers are participating in the LED business through new LED companies or investments in existing manufacturers.

DisplaySearch analysis indicates that Nichia and Toyota Gosei will continue to dominate the market for blue and white LEDs for LCD backlights over the next three years, due to their strong patent portfolios and customer relationships.

However, Samsung LED, Stanley, Citizen, Showa Denko, Seoul Semiconductor and OSRAM are targeting growth in LED backlights for LCD TVs. Finally, Taiwanese makers like Lite-On, Chi-Mei Lighting, Lighthouse and Everlight are entering the backlight market with low cost structures.

The DisplaySearch Display LEDs: Lighting Up the Display World report also reveals that LED revenues for outdoor displays will reach $1 billion in 2009 and are expected to grow to $1.5 billion in 2012. The use of LED outdoor displays in the 2008 Beijing Olympics provided international visibility, and such events will be a driving force for growth in LED outdoor displays in the coming years.

“LEDs will create new growth for the TFT LCD industry due to characteristics such as lowering power consumption, meeting green requirements, adding dimming capability, improving color performance and enabling slim and light form factors for LCD panels and applications,” noted Yoshio Tamura, Vice President of DisplaySearch and the component research team leader. “On the other hand, TFT LCDs also provide new vigor to the LED industry, as they open up broader applications requiring higher quality and more advanced technology.”

Tamura concluded, “The interaction between the LCD and LED industries can be viewed as a key development in electronics in the coming decades.