Compared with LCD, OLED has the characteristics of flexibility, wide viewing angle, soft color, fast response speed, energy saving, etc. These inherent characteristics make the trend of OLED replacing LCD more and more obvious, and OLED is expected to bring about a display revolution. OLED panels have huge room for growth in the future. On the one hand, LCD itself is a market space worth hundreds of billions of dollars, and the existing market space for OLED to replace LCD is large enough; on the other hand, virtual reality (VR), wearable devices, etc. provide continued incremental space for OLED. According to information from DisplayResearch, the global OLED market size was approximately US$13 billion in 2015 and will grow to US$33 billion in 2020, with an average annual growth rate of approximately 20%.
There are unlimited opportunities in the upstream materials field
The rapid development of OLED will drive the rapid expansion of the entire OLED industry chain, including manufacturing equipment, materials, assembly and other industrial chains, which will create huge opportunities. Most OLED materials are not compatible with LCDs, so there are greater market opportunities in the field of OLED upstream materials. OLED upstream materials mainly include cathodes, anodes, transmission layer materials, and light-emitting layer materials. Due to high technical barriers, small market competition, and high profitability in the field of OLED upstream materials, the profitability of OLED upstream materials is expected to remain at a high level in the future. Among them, the transmission layer material and the light-emitting layer material are different from the materials in LCD. They are new additions and will have more opportunities in the future.
Domestic intermediates and crude monomer manufacturers benefit
Domestic companies mainly provide intermediates and crude monomers of OLED organic materials for international OLED material manufacturers. With the explosion of demand for OLED panels, the sales volume of domestic intermediates and crude monomers is expected to increase significantly. The key factors in the OLED intermediate industry are product quality and R&D response speed. Due to the high technical threshold, the industry currently has a good competition pattern and high profit levels. We believe that the current leading companies are expected to continue to grow and develop following the rise of the entire industry chain. Wanrun Co., Ltd., Xi’an Ruilian, Jilin Aolaide, Beijing Aglaiya, etc. are expected to accelerate their growth along with the industrial chain, and have the opportunity to follow domestic companies in achieving overtaking in corners.
Pay attention to the material companies that have entered the supply chains of Samsung and LG
In the short term, the strong position of Samsung and LG in the OLED field will still be difficult to shake. According to online reports, Apple signed a large OLED order with Samsung, which further demonstrates Samsung’s dominance in the OLED field. Companies entering the supply chains of Samsung and LG will continue to To benefit, we should focus on those companies that have entered the supply chain systems of Samsung and LG.
