OLED (organic light-emitting diode) lighting panels are becoming increasingly popular for a good number of technical reasons, and according to the "2016 OLED Lighting Annual Report" recently published by UBI Research, the global OLED lighting panel market should continue to grow year-on-year and become a business worth US$1.6 billion by the end of 2020. And with demand for OLED lighting panels on the rise, UBI Research expects LG Display to become the dominant global supplier of OLED lighting technology, covering roughly 53% of the market before 2020.
Earlier this year, LG Display has announced the opening of a new OLED lighting panel factory in the city of Gumi in South Korea. The plant was built for the purpose of expanding LG Display's business beyond the smartphone market, and to allow the Korean tech giant to compete in the growing OLED light panel industry. LG Display announced that its OLED products will be used for high-end retail stores and luxury hotels, as well as the automotive market. As yet, 15% of the global OLED lighting panel segment is covered by LG Display, but according to UBI Research's 2016 OLED Lighting Annual Report, LG Display is estimated to take the lion's share by 2020, covering 53% of the global OLED lighting market. The annual report reveals that the global OLED lighting market's value in 2016 will amount to $144 million, and will likely grow at an annual rate of 66% between years 2017 and 2025. By the year 2020, UBI Research estimates that the global OLED lighting market will reach a value of $1.6 billion, and given LG Display's 53% estimated market share at that time, roughly $850 million will be attributed to the South Korean OLED panel manufacturer.
OLED lighting panels are expected to replace more conventional technology in a number of fields and market segments, including the automotive market where LG Display is also working on becoming a major supplier. Additionally, harsher regulations regarding the use of incandescent light bulbs by companies, businesses, and product manufacturers will likely contribute to an increase in OLED lighting panel usage and production, especially since OLED technology is much more power efficient than conventional light sources. According to UBI Research estimates, by the year 2025 the automotive OLED lighting panel market will be valued at $ 2.78 billion, whereas the OLED downlight segment will top $ 3.4 billion.