DSCC sees OLED microdisplays shipments rising from <1 million in 2020 to over 19 million in 2026

DSCC says that the AR and VR markets are set for quick growth, and display sales for AR and VR devices will grow at a CAGR of 52% between 2020 and 2026, to reach $4.2 billion in sales (up from $347 million in 2020). This forecast does not include military applications.

AR and VR display revenue forecast (2020-2026, DSCC)

DSCC says that new technologies, specifically designed components and strong push by consumer electronic giants like Sony and Apple will drive this fast growth in VR and AR adoption. As you can see in the chart above actual see-through AR will remain a relatively small market even in 2026. The main problem with AR will remain display brightness, and DSCC see microLED technologies providing a breakthrough in this market.

OLED production will grow 94% in Q2 2021, as demand for OLED panels increases

DSCC says that OLED production will grow 94% in the Q2 2021, fueled by strong demand for OLED in smartphones, TVs and other devices - coupled with a recovery from the pandemic. Growth in OLED input area for small & medium displays is expected to grow 68%, while grow in OLED TV input area will grow by 134% over last year.

OLED and LCD production capacity (2019-2021, DSCC)

The chart above shows the total OLED (and mobile LCD) industry capacity. As you can see, flexible OLED capacity is growing - mainly from expansions by CSoT, Tianma and Visionox. There's also growth in rigid OLED capacity - from Everdisplay and JOLED.

DSCC sees a large spike in foldable OLED shipments towards the end of 2021

DSCC says that foldable smartphone shipments will rise sharply starting in August 2021 - and total foldable OLED smartphone shipments in Q4 2021 will be higher than the whole period from Q1 2020 to Q2 2021 - combined.

Foldable OLED shipments (Q1 2020 to Q4 2021 estimate, DSCC)

There are several reasons for this high increase in projected shipments. First of all, Samsung is expected to release several new foldable smartphones in Q3 2021 - three models in fact, including an "aggressively priced" clamshell foldable.

DSCC: production costs of miniLED TVs to be higher than OLED TVs

DSCC published an interesting post that details the production costs of both WOLED and miniLED TV panels. So first of all, it details LG's current costs for producing OLED TVs, as you can see in the chart below. The costs of producing larger 77-inch and 8-3inch panels are significantly larger than the costs of 65-inch and smaller TV panels:

2021 WOLED TV production cost by size (DSCC)

Interestingly, DSCC says that in 2020, the production costs in LG's Guangzhou fab was higher than the costs in LG's Korean OLED TV fab as the yields in Korea are higher - but this will change in 2021 as China has lower costs for depreciation, personnel and more. DSCC estimates that production costs for a 55-inch or 65-inch WOLED panel will be 14% lower in China than in Korea.

DSCC posts its latest outlook for the OLED materials market

DSCC posted an interesting post with its latest views and forecasts on the OLED material market. The company expects AMOLED stack material sales to grow at a 18% CAGR in the next five years, from $294 million in 2019 to $2.46 billion in 2024. Compared to its previous estimate, DSCC sees higher sales as demand for OLED TVs and OLEDs in the IT market (tablets and notebooks) is increasing.

AMOLED material revenues by application (2019-2025, DSCC)

DSCC also posted an analysis of LGD's new evo OLED material stack. Compared to LGD's "standard" WOLED stack, the evo adds an emitting green layer to improve the brightness by 20%. This of course adds an extra material cost to the panel price.

DSCC details the OLED smartwatch panel market in 2020

DSCC posted an interesting chart that details OLED smartwatch shipments by supplier. This is an interesting market as there are almost 10 suppliers with no dominant player:

OLED smartwatch shipments by supplier (DSCC, 2017-2020)

In fact DSCC says that there are five different OLED panel makers (BOE, SDC, LGD, EDO and Truly) that each has a market share over 10% in 2020.

DSCC sees the foldable OLED display market growing to 94 million units by 2025

DSCC estimates that foldable OLED panel shipments will reach 3.1 million units in 2020, an increase of 454% from 2019. Revenues in 2020 will reach $462 million. DSCC decreased its estimates following the US restrictions on Huawei which prevented the launch of the Mate X2. The market will grow to 94 million panels by 2025 (a CAGR of 97% from 2018).

Foldable OLED panel shipments by application (DSCC, 2018-2025)

Samsung is clearly the leading foldable OLED device brand, with a market share of over 80% in the 2020. The two best selling smartphones in 2020 are the Samsung Galaxy Z Flip and the Z Fold 2.

DSCC sees OLED revenues reaching $31.9 in 2020, Q4 will be an all-time-high

DSCC says that OLED panel revenues will reach almost $12 billion in Q4 2020 - reaching an all-time high (up 46% from Q4 2019) as all the major OLED markets, smartphones, TVs and smartwatches, saw increased demand.

OLED panel revenue 2016-2020 (DSCC, December 2020)

One of the major drivers for the increased Q4 demand was Apple's later-than-usual release date which pushed orders into Q4 from Q3, and an earlier Samsung S21 release which meant SDC started producing panels for Samsung Electronics's upcoming flagship as early as November. DSCC estimates that Apple will account for 57% of all OLED smartphone panel revenues in the quarter.

DSCC: The high cost of MicroLED TV production will limit adoption in the next 6 years

DSCC says that the high costs of microLED production will limit the adoption of microLED TVs, which are highly expensive, and the technology will remain in the niche of ultra large displays. The market is set to grow from around $25 million in 2020 to $228 million by 2026.

MicroLED TV revenue forecast (2020-2026, DSCC)

Just for comparison, six years after being commercialization, in 2019 OLED TV revenues were estimated at $2.5 billion.

DSCC increases its 2020-2023 OLED production equipment spending estimate

DSCC estimates that it has increased its OLED equipment spending estimate for 2020-2023 by 11% compared to its previous outlook. DSCC now sees total OLED equipment spending reaching $45 billion. The increase was due to increased demand for LGD's mobile OLEDs and plans to increase capacity and CSoT's new $6.8 billion IJP OLED fab plans.

Interestingly DSCC also increased its LCD equipment spending estimate by 37% following three recently announced smaller expansion plans. In total for both LCDs and OLEDs, display equipment spending for 2020-2023 was upgraded by 9% vs. DSCC's last estimate to $38B.

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