Back in 2014, the proportion of OLED panels in the smartphone market only accounted for 27 percent of all devices, while traditional TFT-LCD panels made up a sizable 73 percent. Now in 2017, the proportion of OLED panels is expected to increase to 40 percent due to Apple’s adoption in its upcoming iPhone model, reaching 58 percent by 2018. In comparison, traditional TFT-LCDs are expected to reach 42 percent during the same year.

OLED production capacity increases to 14.7 million sq. meters next year

Global annual production capacity for OLED panels in 2014 was 3.6 million square meters. Two years later in 2016, that number increased to 5.3 million square meters and by 2018, capacity is expected to further increase to 14.7 million square meters.

The market is currently dominated by Samsung Display, which plans to ramp up OLED panel production by 35 percent in 2017 to meet surging demand from Chinese smartphone manufacturers. Six other suppliers have stated their intentions to increase or expand production capacity – LG Display, BOE Technology, EverDisplay Optronics, Kunshan Govisionox Optoelectronics, Tianma Micro-electronics, Truly Opto-Electronics, and Taiwan-based AU Optronics.

During its keynote speech at Finetech Japan, LG Display mentioned that in 2016, it had 90 percent of consolidated revenues coming from TFT-LCD panels and just 10 percent from OLED units. Within the next three years, it expects this ratio to change to an even split as it begins to extend OLED production for smartphone and tablet-sized panel orders.