(iTers News) - Growth in the OLED industry is slower than expected due to very few breakthroughs in AMOLED displays and manufacturing costs that are still higher than those for LCD screens. According to market research firm NPD DisplaySearch, due to ongoing delays in OLED TV shipments, OLED material revenues are expected to reach just US$795 million in 2014, a decline from previous forecasts of just over US$1 billion. 

Among the various OLED technologies, AMOLED is getting more attention from display manufacturers, as the flat panel display (FPD) market matures and revenue growth slows. AMOLED displays have been adopted mainly in mobile phones, but the AMOLED industry is now attempting to penetrate into televisions, tablet PCs, and other large-area display markets, and OLED material is expected to be one of key factors for this transition.

“The OLED material industry and related investors are justifiably worried about where the OLED material market is headed in the near future,” said Jimmy Kim, senior analyst for display materials and LED for NPD DisplaySearch. “If OLED TV shipments increase, the larger average unit area and lower yield rate will increase the overall consumption of raw materials for OLED TV panel manufacturing.”

Figure 1: OLED Materials Revenue Forecast by Material Type

Source: NPD DisplaySearch Quarterly OLED Materials Report

(Credit: NPD DisplaySearch)