Thin-Film Encapsulation (TFE) Market Report

OLEDs are suitable for smartphone applications due to their long-lasting, lightweight, flexible, thin and consume less power. Using a flexible plastic material can make OLED devices bendable, foldable, stretchy and even rollable. As a result, demand for flexible OLED display displays for high-definition applications such as smartphone displays and HD televisions is increasing, which is boosting demand for TFE technology nowadays and in the future. Furthermore, the use of TFE materials in OLED display panels is increasing since water can easily damage OLEDs. The growing demand for innovative smartphones and wearable devices is expected to play a significant role in the expansion of the flexible display market.

Furthermore, the latest technologies, such as inkjet printing and atomic layer deposition (ALD) are expected to have an impact on the market during the forecasting period. With the recent popularity of foldable devices, multiple businesses are stepping up R&D efforts to further improve the technology. For instance, Samsung displayed a prototype of their Flex G OLED display on the exhibition center. For a more compact mobile device, this flexible OLED panel can fold inwards twice. The firm also showcased its Flex S OLED display prototype, which can fold inward and outward. In a ground breaking new study, researchers at the University of Minnesota Twin Cities developed a customised printer to fully 3D print a flexible organic light-emitting diode (OLED) display. The discovery might lead to low-cost OLED displays that can be mass-produced using 3D printers in the future.

The high cost of equipment for depositing thin encapsulant films poses a significant challenge. OLED panel and thin film photovoltaic manufacturers face the need for substantial investments in R&D to address this issue. To enhance the quality and functionality of thin encapsulant films, they must focus on reducing film geometries, refining complex device architectures, and optimizing multiple application and process steps. Additionally, exploring and integrating novel materials is crucial. Such advancements are essential for improving the technical performance and overall efficiency of encapsulation technologies, ultimately justifying the high capital expenditure and driving innovation in these high-tech industries.

Additionally, scaling up production for advanced thin-film encapsulation (TFE) materials presents several distinct challenges. Precision in deposition processes must be maintained across larger production scales, demanding exacting control over film thickness and uniformity. Achieving consistency in material properties, such as barrier effectiveness and mechanical strength, becomes increasingly complex as production volumes rise. Moreover, maintaining the integrity of intricate, high-resolution structures during mass manufacturing can be problematic. Integration of novel materials introduces variability that requires rigorous testing and optimization. These factors collectively complicate the transition from lab-scale to full-scale production, impacting both cost-efficiency and product reliability.

To overcome production challenges for advanced TFE materials, strategic development must focus on enhancing deposition technologies for uniformity and precision. Innovations should include automation improvements to reduce human error and advanced monitoring systems for real-time quality control. Investing in R&D for novel materials that offer better performance and scalability is crucial. Additionally, developing scalable processes that integrate seamlessly with existing manufacturing infrastructure will be key to achieving consistent, high-quality output in larger volumes. For instance, in May 2023, Merck, a leading science and technology company introduced new barrier materials that offer superior flexibility, higher reliability, and longer lifetime in flexible OLED devices compared to existing solutions. Last week, the innovative ALD material won the Display Component of The Year 2023 award from SID, the world’s biggest display society. In addition, in April 2024, und Wasserstoff-Forschung Baden-Württemberg (ZSW) and First Solar, Inc. announced a strategic research partner-ship focused on advancing thin film photovoltaics (PV). The partnership will not only focus on performance, but also on the po-tential to develop and optimize all-thin-film tandem technologies on a gigawatt scale.

Asia-Pacific is expected to have a sizable market share in thin-film encapsulation. The expansion of the regional market may be attributed to the development of the electronics and semiconductor sectors, particularly in China. The established electronics manufacturing hubs in South Korea, China, and Taiwan increased demand for thin film encapsulation technology. However, in a region with tight regulations on FDI across the industry, the electronics-manufacturing area is more open to FDI when compared to the national averages for all the merged sectors. Government policies, particularly in recent years, have encouraged the development of a robust electronics sector in the region, which is likely to generate a favourable market condition for the thin film encapsulation industry.  Industrialization and the expansion of end-user industries in developing economies such as China and India have generated several untapped opportunities. Moreover, due to increased solar panel production and installation, China, Indonesia, Japan, South Korea and Taiwan have led the thin-film encapsulation market growth. According to the International Energy Agency (IEA), China currently manufactures and provides over 80% of the globe's solar photovoltaic (PV) panels.