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Rising disposable income of end-users and a preference for high-quality products to drive global growth of Organic Electronics Market to 2020

Rising disposable income of end-users and a preference for high-quality products to drive global growth of Organic Electronics Market to 2020

04-Jul-17

Organic electronics is a branch of electronics that deals with design, formulation and application of organic materials that possess electrical properties. The organic materials used are basically organic compounds that exhibit considerable electrical properties like conductivity. These materials are made up of tiny molecules or carbon-based polymers, hence also called polymer electronics or plastic electronics. Organic electronics offer the benefit of low-cost manufacturing as compared to conventional inorganic electronics. Organic electronics is environment-friendly and offers better resource utilization. The different types of materials used in the manufacture of organic electronics include polymers, nanotubes, graphenes, carbon-based molecular structures, and hybrid materials. A commonly known application of organic materials is organic light-emitting diode (OLED), which is widely used in smart phones. Organic solar cells, television displays, and transistors are the other applications of organic electronics. Out of all these segments, organic displays contribute the highest revenue for the organic electronics market. Advantages of organic electronics are - they can be processed in room temperature unlike silicon, which requires temperatures above 1000°C. It can be produced in bulk and at low cost unlike the currently used expensive electronics. Organic electronic materials are flexible, brighter and consumes less power. On the other hand, its disadvantages include- water can damage it, high cost on research &development activity, low electrical conductivity and less life as compared to metallic conductors.

As per Future Market Insights, some of the underlying drivers of the market include the rising disposable income of end-users and a preference for high-quality products, increasing investments of major companies in the organic electronics segment, competition among suppliers for product differentiation and a rise in concern towards environment protection. The consumer electronics segment, comprising smartphones and televisions, is expected to bring about a double-digit growth rate in the organic electronics market incoming six years. On the other hand, low electrical conductivity, complicated fabrication of material and the presence of more competent technologies are some of the restraints behind the development of the organic electronics market.
The organic electronics market is segmented on the basis of material used, application and geography. On the basis of materials used, the market is classified into semiconductors, conductors, substrates and dielectric materials. On the basis of applications, the market is categorised into displays, organic sensors, organic radio frequency identification tags (ORFIDs), photovoltaic systems, batteries, system components and smart applications. On the basis of geography, the market is divided into North America, Latin America, Asia-Pacific, Japan, Western Europe, Eastern Europe and Middle East & Africa. At present, some of the innovative applications of organic electronics include - displays, lighting, photovoltaic and other smart electronic systems. Constant research &development activities are leading to the development of biomedical implants and other biodegradable RFID tags. Other areas of exploration include possible application in memory devices, detectors, micro lenses, batteries, photoconductors, optical fibres and consumer packaging. Ongoing developments in the consumer electronics segment, especially smartphones, offer promising growth in terms of adoption of organic electronics. Technological advancements concerning organic photovoltaics, transistor technology and organic display technology, and developments in organic polymer materials are expected to drive market growth.
Some of the market players are Asahi Kasei Corporation, BASF SE, Bayer MaterialScience AG, Evonik Industries, DuPont, Henkel AG & Company, Optomec, ITRI, Samsung Display and Sony Corporation.The key strategies adopted by these players are product innovation and product differentiation. Organic electronics is an emerging market, hence most companies are focusing on sharing their expertise through partnership and collaboration. Scientific and technological developments by OEMs (original equipment manufacturers) and pure technology solution providers will help the organic electronics market to sustain and grow.

As per Allied Market Research, the Organic Electronics Market is expected to garner US$79.6 bln by 2020, registering a CAGR of 29.5% during the forecast period 2014-2020. Organic electronics market is in its early growth stage. Organics electronics find application in varied industries namely display, ORFID, OLED lighting, photovoltaics and others. Key factors driving the market are the need for reduction of cost, weight and power consumption of electronic goods. It is estimated that by the end of 2015, 130 million TV sets, 400 million PCs, 300 million tablets and 800 million smartphones would be shipped globally. Therefore, demand for flexible TFT would be very high. Similarly, the demand for other flexible electronic goods required in healthcare, government and other sectors would soar, and this would drive the growth of flexible electronics market. Organic display is the largest revenue generating segment for the organic electronics market accounting to nearly 65% - 75% of the overall market revenue. OLED display finds application in laptops, tablets, T.V. sets, and lightings. Asia Pacific generates approximately 65% of the revenue for the global market due to the fact that APAC is home to almost 3/4th of the global electronics manufacturing industry which is the primary application area for organic electronics. The cut-throat competition among the LCD display manufacturers is the key reason for a boost in OLED displays market, just to gain product differentiation and competitive advantage in the market. Irrespective of its expensiveness, OLED displays have gained momentum and the advent of flexible OLEDs have proved to be a revolutionary approach by OLED manufacturers. However, non-compatibility with conventional electronic goods and lack of robustness are the major restraints for the growth of the market. Some of the top companies profiled in the report are Fujifilm Dimatix, Inc., Bayer Materialscience AG, H.C. STARCK, AGC Seimi Chemical Co., Ltd., Sumitomo, Polyic, Heliatek, Novaled, Merck Kgaa, Evonik, BASF Materialscience AG. The key players can look forward for good revenue, as numerous companies across industry verticals are keen to adopt flexible electronics technology. Since this is an emerging market, it is expected that the key players would engage in collaborations and partnership to share expertise, instead of being involved in competition.
Organic RFID (ORFID) holds just about 2% of the global market due to its limited application in the prevailing market conditions. Contrary to the current market scenario, ORFID is anticipated to witness tremendous growth through 2020, and would outpace any other application area. Key factor for such remarkable growth is attributed to its ability to substitute silicon based RFID. ORFID would be a cost effective option for tags, as the materials and manufacturing costs would lower over the period of time. Key findings of Organic Electronics Market include:

  • Global market for organic electronics gaining traction with displays, ORFID and Lighting to provide major growth thrust during the forecast period (2014 - 2020)
  • ORFID segment will grow at a CAGR of 48.1% during the forecast period, fastest among all
  • Europe would be one of the lucrative markets, both in terms of size and growth. Europe would reach US$9.6 bln by 2020, with fastest CAGR of 35.9%
  • Within organic displays, electro luminscent displays would be most lucrative at 48.7% CAGR during forecast period.
  • OPV and DSSC, though, are the fastest growing photovoltaic segments, CIGs would remain segment of focus - at 94.6% market share in 2020 - within organic photovoltaic market
  • System components will compose second largest segment for organic electronics in 2020, much exceeding photovoltaic segment. The system component would generate about 20% of the global OE market revenue in 2020
  • Conductive inks would outrun other system component segments with about 86.5% revenue in 2020

The market growth is strengthened due to government incentives and other favorable policies that promote innovations in organic electronics. As this industry is in its early growth stage, the companies are strategically focusing on new and innovative product development. This specific focus is to achieve product differentiation and thus gain competitive advantage over the competitors. Continuous technological encroachments, specifically in the sector of organic electronics, have led the market to a completely new horizon. A strong and strategic business relation with the OEM manufacturers and the pure technology solution providers is an inevitable requisite to sustain in the competitive market.

As per Grand View Research, application in curved HD TVs, portable solar cells, colored light source and smartphone displays is expected to favorably impact the organic electronics market. Organic electronics represent a highly promising technology that is expected to provide increased functionality in order to overcome power consumption challenges over the forecast period. Potential applications of organic electronics span a broad range of fields including national security, environmental health, biomedical research and IT. Owing to simple processing methods and low material utilization, these devices are expected to become a low-cost alternative to the traditional inorganic electronic applications. Establishment of advanced systems relying on organic semiconductors may demonstrate remarkable technological maturity and competitiveness of these devices over the forecast period. Devices made with organic materials have better interfacing capabilities with biological systems as compared to inorganic materials. Enhanced biocompatibility of organic materials has also led to biomedical applications such as neuron interfacing. Transparent organic transistors can simultaneously sense as well as simulate electrical activities of cultured mammalian neurons which could open unparalleled possibilities for neurophysiology. Rapidly growing consumer electronic goods industry, increasing application areas, favorable government initiatives and improved performance are some the factors expected to drive the organic electronics market. However, potential hurdle for the wider adoption of organic electronics such as lack of robustness and non-compatibility with conventional goods may hamper market growth. The market segmentation on the basis of materials include substrate, dielectric, conductive and semiconductor. On the basis of applications, the market includes system component, organic photovoltaic (OPV), OLED lighting, printed batteries, organic RFID tags and display applications. OLED display finds applications in lightings, T.V. sets, tablets and laptops. Lighting systems and OLED-based displays are expected to remain the dominant segments. However, development of multilayered structures of white-emitting OLEDs and complex fabrication process could affect sub-segment growth through the forecast period. OPV market segment is expected to be driven by increasing adoption of OPV technique due to reduced cost of dye sensitized solar cells (DSSC). Asia Pacific is expected to dominate the market over the next six years.

As per Zion Market Research, organic electronics is a branch of material science which deals with application, design, and formulation of organic materials, which possesses desirable electronic properties such as conductivity. These materials are composed of carbon-based polymers hence known as plastic electronics or polymer electronics. As compared to inorganic electronics, organic electronics offers the benefit of low-cost manufacturing. It is environment-friendly in nature and also offers better resource utilization. Various kinds of materials are used in the manufacturing of organic electronics such as carbon-based molecular structures, polymers, hybrid materials, nanotubes, and graphenes. Most common application of organic materials is an organic light-emitting diode (OLED) which is broadly used in smartphones. Transistors, television displays, and organic solar cells are other applications of organic electronics. Organic electronics are managed in room temperature and can be produced in bulk at a low cost. They are brighter, flexible, and consume less power. Organic electronics are used in various applications such as photovoltaics, OLED lighting, ORFID, and others. It helps in reducing power consumption, cost, and weight of electronic goods thus driving the global organic electronics market. Millions of tablets, TV sets, smartphones, and PCs are being exported globally thus fostering the market growth. Similarly, the demand for other flexible electronic goods may escalate in sectors such as government, healthcare, and other. However, lack of robustness and non-compatibility with conventional electronic goods are factors that restrain the global market growth to some extent. The global organic electronics market is segmented into its application, material used, and geography. Based on the application, the global market is divided into smart applications, organic displays, organic radio frequency identification tags (ORFIDs), system components, organic sensors, batteries, and photovoltaic systems. The organic display is the dominating segment. While, OLED displays are used in lightings, laptops, T.V. sets, and tablets. On the basis of the material used, the global organic electronics market is segregated into dielectric materials, semiconductors, substrates, and conductors. Regionally, the market is diversified into Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa. Asia-Pacific is the largest market for organic electronics, it is considered as the home for almost 3/4th of the global electronics manufacturing industry which is the major reason responsible for the growth of the market. Tough competition among the LCD display manufacturers is the key factor that boosts the OLED displays market in this region. OLED displays have gained momentum across the world regardless of its expensiveness and the arrival of flexible OLED have given a revolutionary attitude to the OLED manufacturers in the Asia Pacific region. Other regions such as North America and Europe are also contributing a good share in the global organic electronics market.

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