Smartphones drive OLED display uptake, says IHS iSuppli

Shipments of active matrix organic light-emitting diode (AMOLED) are predicted to increase by nearly a factor of six from 2010 to 2015, according to market reseach by IHS iSuppli.

The big driver will be high-end Android smartphones.

“AMOLEDs are enjoying rising usage in smart phones because of their wider viewing angle, higher refresh rates and thinner formats, compared to conventional liquid crystal displays (LCDs) used in most cell phones,” said Vinita Jakhanwal, principal analyst for small and medium displays at IHS.

According to the market analyst, global unit shipments of AMOLEDs will rise to 271.2 million units in 2015, rising at a 40.6% compound annual growth rate (CAGR) from 49.4 million units in 2010.

AMOLED revenue is set to expand to $3.6bn in 2015, expanding at a CAGR of 31.9% from $892.1m in 2010.

There are issues to be addressed.  AMOLED displays are currently 30 to 60% more expensive to manufacture than equivalent low-temperature polysilicon (LTPS) LCD displays, said IHS.

“While the benefits to AMOLEDs are clear, challenges still remain,” Jakhanwal said. “These challenges include high manufacturing cost, resolution challenges, limited product lifetime, reduced visibility in sunlight and a complex, time-consuming manufacturing process.”

IHS pointed to Samsung’s new 5.5-generation (5.5G) AMOLED line which is due to go into production during the second quarter.

“This will likely bring improved efficiency that will help produce AMOLEDs at an equivalent cost as LCDs,” said IHS.

Another challenge for AMOLED is that screens using the technology suffer from reduced visibility in direct sunlight.

It is still a challenge for AMOLEDs to achieve high resolution comparable to LTPS LCDs. 

The new IHS iSuppli report, entitled: OLED Market: Industry Impact Following Japan’s Recent Disasters.