June 10, 2014…ElectroniCast Consultants announced their market forecast of the worldwide consumption of organic light emitting diodes (OLEDs) in General Lighting applications. According to ElectroniCast, the worldwide consumption value of General Lighting OLEDs reached $46.6 million in 2013. ElectroniCast predicts that consumption value will increase at an average annual growth rate of 39.6 percent to $247.4 million in 2018. The company forecasts that from 2018-2023, the total consumption value of General Lighting OLEDs will increase 93.6 percent per year, reaching nearly $6.7 billion in the year 2023. The use of OLEDs in displays and vehicles is not included in ElectroniCast’s market forecast.
“The average selling prices (ASPs) are based on the price of the OLED at the initial factory level and/or internal adjustments for R&D use and captive manufacturing. In this market forecast study, we quantify the average selling price in terms of the square meters (m2) of OLED use in General Lighting. The worldwide average selling price in 2013 was 42% lower than in 2012,” said Stephen Montgomery, principal analyst- LED Practice at ElectroniCast.
In the forecast period’s early years, a large percentage of OLEDs used in General Lighting are associated with Research and Development (R&D). R&D costs are non-capitalized labor, which is used for research, design engineering, manufacturing development, and start-up, costs of new production lines. It does not include capital equipment and associated setup costs, marketing support, or normal production support; however it does include expense incurred while prototyping and developing a new process or production line. ElectroniCast anticipates that the consumption of General Lighting OLED panels in the Residential/Other user-group will trend to premium (high-price) lighting fixtures and specialty applications (niche applications), which may not necessarily be adequately served by other lighting solutions. Therefore, ElectroniCast says that until these “niche” general lighting OLED panel solutions develop in the Residential marketplace, consumption will remain minor.
“OLED lighting is environmentally friendly, mercury-free, and ideal as next-generation lighting. Because of their extreme thinness, lightness, low electric power consumption, and use as a surface light source, OLEDs enjoy a wide range of potential applications,” Montgomery added.