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Development status and challenge tendency of OLED, the next generation display technology

From: southern daily

Since OLED TVcalled “the next generation display technology” was launched in domestic marketmore than one year ago, promotion and popularization is not smooth due tolimitation of great technical difficulties, high cost and high price ofterminal products. But it is hopeful to convert the situation. 

Recently, the datapublicized by Display Search, the global professional panel display researchand consultation institute says that the market share of OLED TV panel willincreases two times in 2015. Insiders also predict that OLED TV and plasticOLED for intelligent wearable devices will experience quick development. Thispushes that the overall OLED market scale will exceed 300 million pieces in2015.  

Status: marketpopularization of OLED held back

OLED is recognizedas the representative of the next generation display technology.

It is understoodthat OLED breaks the limitation of picture and design of LCD TV completely andachieves innovation of TV display technology including highlight of OLED suchas flexible screen, super thin thickness, higher color gamut and contrastratio. For example, for ductility of OLED panel, no external force is requiredto deform it. Therefore, no addition production cost is caused. Manufacturersmay determine production output of curved TV according to preference ofcustomers.   

As it is also inline with customer’s requirements for health and environmental protection, LGDisplay, a Korean panel enterprise and the “main pushing hand” of OLEDtechnology, calls the Chinese name of OLED as “organic TV”. But the developmentof OLED TV is not always smooth. LG Display took the leadin developing 55″OLED TV panel earliest in 2011 and put it into massiveproduction in the next year. LG and Samsung launched OLED TC products inthe beginning of 2013 successively and marketed it in China in September of thesame year. Domestic color TV enterprises that are very sensitive to the newround of technical innovation follow up quickly. Domestic brands such asSkyworth, TCL, Changhong, Haier and Konka display their OLED brand on 2014Customer Electronics Show. 

But, recent marketinterview of journalists finds although a number of manufacturers exhibit OLEDTV products at terminal outlets, they still mainly sell LG and Skyworthactually. Lu Renbo, the deputy secretary general of China Electronic Chamber ofCommerce analyzes that promotion of OLED TV is not smooth because of greattechnical difficulties, low rate of qualified products resulting in high cost,small output and high price.

In fact, the priceof OLED TV is lowered obviously at present compared with that of 2013 when itwas launched on the market initially. According to understanding of thejournalists, take LG 55″curved surface product as an example, its price was59999 Yuan when it was launched to the market initially. But journalists findthat the sale price is about 18888 Yuan at Gome EShop and Jingdong Mall. Foranother model of LGF 55″ OLED product, the present price 19999 Yuan is reducedobviously compared with 29999 Yuan on “May Day” of last year. Despite this, itis far higher than that of LED products with the same size. The main price tierof 4K TV product of the same size is between 4999 and 7999 Yuan.

Some manufacturersspeak to the journalists directly that manufacturer’s promotion for OLED TV ismore for occupying the leading position in technology and not for short-termsales volume.

Risk: high-end LCDdisplay challenges.

Although theprospect is expectable, OLED TV Industry still faces risk and challenge.Foreign media points out that the biggest risk of OLED for TV at present isthat OLED TV has a small market. According to data from Display Search, marketscale of OLED around the globe is about 0.6 million sets this year, onlyaccounting for 0.3% in the whole TV market.

Previously,Samsung ever carried volume production for TV OLED panel and had a plan forlarge-scale investment. Kim Hyun-suk, the responsible person of Samsung TVbusiness indicated externally at the end of last year that Samsung would notissue new OLED TV and would shift the focus on LCD TV with quantum dotbacklight Technology in the future. At present, LG Display is the only strongenterprise in the field of OLED panel. Although OLED panel production line inErdos of BOE and that of China Star Optoelectronics Technology in Wuhan is putinto production and under construction respectively, they manufactures mediumand small size and for the field of mobile equipment. If domestic manufacturersare to develop OLED TV, they need make cooperation with LG Display. Insidesmake analysis that although domestic color TV brand carry out layout of OLEDproducts, problems such as lack of needed technology for panel of the upstream,product line not rich still restrict the follow-up speed of domestic brands.

Meanwhile, LCDdisplay technology evolves constantly. High-end display technology including 4KUltra HD will also form challenge for development. The most typical one is therecently hot quantum dot technology. Domestic panel manufacturer such as BOEand China Star Optoelectronics Technology began to import massive production ofquantum dot technology. At the end of last year, TCL took the lead in issuingTV product of quantum dot. Numerous domestic manufacturers including Samsungand Sony launched quantum dots TV on Customer Electronics Show this year. HaoYi, multi media CEO of TCL introduced that quantum dot TV can provide picturequality and color rendition ability comparable to OLED TV. It is even betterthan OLED. The key factor is that the price is 40% lower than OLED TV of thesame size.

The points of viewof the Industry think that if quantum dot technology can overcome limitationand development bottle neck in the aspect of color conversion, curvemanufacturing, thickness design, etc, it may bring powerful challenge to OLEDin the future.

All ViewConsulting predicts that the status of OLED technology parallel with currentmainstream TFT-LCD technology will emerge in two to three years to come. OLEDcannot replace LCD TV in a short period of time.

Prospect: TVbecomes core motive force for growth

Display Search, amarket research institution, publishes the panel display market report thatprovides confidence to OLED TV Industry. The report shows that marketconfiguration of OLED panel is changing. OLED TV will take the place of mobilephone OLED panel and become the core motive force for growth of OLED market.The total amount of OLED TV panel market will reach 1.43 billion Yuan. It isnear triple over that of 500 million U.S. dollars of 2014. 

Data indicatesthat mobile phone OLED panel market reached the peak in the whole OLED marketwith the proportion of 96.7% and the market share of 9.9 billion U.S. dollarsin 2013. However, mobile phone OLED panel stops growth in 2014 and theoccupation ration reduced to 85%. It also affected the overall marketperformance of OLED at the same time. The total amount ofoverall OLED market was 10.3 billion U.S. dollars and that was 9.8 billionU.S. dollars in 2014. Negative growth occurred.

Zhang Bing, thechief research officer of Display Search in China region, predicts that marketoccupation of OLED TV will exceed 10% and reach 12.5% in 2015. The occupationratio in overall OLED market will reach 37.6% in 2021, showing an explosivegrowth. 

For this purpose,manufacturers of the Industry will make preparation. The journalist gets toknow from LG Display that they put the second production line into productionat the end of last year. It is predicted that OLED production capacity willreach 26,000 pieces per month at the end of this year. The figure will reach34,000 pieces in 2017. Competition among OLED display technology will promoteZOLED to penetrate and popularize in the market in the future. 



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