OLED-on-Silicon Market Size, Share and Growth

Updated on : October 22, 2024

OLED-on-Silicon Market Size & Growth

The OLED-on-Silicon (OLEDoS) market size is projected to reach USD 2,352 million by 2029 from USD 534 million in 2024, growing at a CAGR of 34.5% between 2024 to 2029.

Growing adoption of OLEDoS in AR/VR devices, increasing demand for high resolution microdisplays, and increasing investment in the OLEDoS ecosystem are some of the major factors driving the market growth globally. Moreover, opportunities such as growing consumer electronics industry, advancement in OLED material technology, expanding applications across various industries to drive the growth of OLED-on-Silicon (OLEDoS) market.  Consumer electronics such as smart glasses, AR/VR HMDs are undergoing significant adoption, hence creating huge new revenue streams for OLEDoS displays. These high pixel density and low power consumption make them ideal for immersive experiences and real-time information display in wearables.

OLED-on-Silicon (OLEDoS) Market Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

OLED-on-Silicon Market Trends:

Impact of AI/Gen AI on OLED-on-Silicon market

Artificial intelligence (AI) is expected to significantly transform the OLEDoS display ecosystem. The integration of AI with displays and related software offers a wide range of capabilities ranging from the enhancement of videos and images in real-time to facilitating personalized content being displayed in commercial and retail settings. Furthermore, the integration of AI also facilitates the enhancement of smart display features, integration of displays with other smart home devices such as intelligent voice assistants, and development of advanced features tailor-made for augmented and virtual reality (AR and VR) solutions and wearable devices. Furthermore, in the industrial setting, the integration of AI enables predictive maintenance of display hardware, thereby significantly reducing downtime and maintenance costs.

OLED-on-Silicon (OLEDoS) Market Dynamics

Driver: Growing adoption of OLEDoS in AR/VR displays

The AR and VR markets are expanding rapidly, with increasing interest from both consumers and businesses. OLED-on-Silicon displays are becoming increasingly popular for augmented reality/virtual reality HMDs since they have high pixel density, low power consumption, and compact size, enhancing comfort and efficiency. Some notable improvements include Qualcomm's 2020 reference design, which is powered by a 0.49-inch OLEDoS display from SeeYa Technology. Another is LG Display's "Firefly Project," which manages to pack an astonishing 4,175 pixels per inch. On top of this growing integration, Apple also mentioned in 2022 that the XR Headset would use Sony's OLEDoS displays. This gowing adoption of OLEDoS displays signifies the need for micro-sized, high-quality displays. The growth of these displays will increase as AR and VR start to move into areas like education and healthcare. OLEDoS technology positions itself in a very strong position for exponential market growth.

Restraint: High initial capital investment

High producing costs are a major restraint to the OLED-on-Silicon market; it involves complex techniques that integrate OLED materials with silicon backplanes. Specialized equipment and cleanroom environments are required in the process. The yield rates for OLEDoS are lower compared to traditional displays such as LCD and LCoS since defects in the layers render displays useless. Stringent quality control adds to the expense.

Technical challenges also raise the costs. A high pixel density and control over pixels demand very sophisticated fabrication methods. The processes of depositing OLED materials onto the silicon substrate are critical, calling for some consistency in laying down. Moreover, advanced encapsulation techniques are required to protect the OLEDs from moisture and oxygen. These make OLEDoS displays quite expensive and therefore unexploited in price-sensitive markets, despite their superior features.

Opportunity: Expanding applications across various industries

OLED-on-Silicon (OLEDoS) displays have a strong history in specialized sectors such as defense and aerospace, where the values of its high resolution and superior contrast ratio were first realized. Adopted first in electronic viewfinders and military optics, this technology was developed by Sony and MICROOLED. In 2009, Sony began working on OLED microdisplays, and by 2011 they were used in camera viewfinders, paving the way for further applications.

More recently, significant events in consumer electronics, especially in AR and VR devices, are happening with OLEDoS technology. For example, Apple Integrates OLEDoS displays in new XR devices, trying to create high pixel density within the compact form. This technology further finds applications in wearable tech, such as smart glasses. The joint work by MICROOLED with Julbo on the EVAD-1 digital sports glasses folds out OLEDoS's capability for showing real-time data to athletes. Other applications in connected safety glasses and medical imaging equipment further underline the growing role OLEDoS displays will play in industry.

Challenge: Complexities associated with next-generation batteries

Supply chain issues strongly affect the OLED-on-Silicon (OLEDoS) market. Production of OLEDoS displays requires a sophisticated supply chain that involves several high-precision components. Specialized materials and advanced manufacturing equipment go into the making of an OLEDOS display. Any kind of disturbance in this delicate supply chain, for instance, a shortage of some critical raw materials or delay of component deliveries, causes production bottlenecks, and consequently, it increases costs. As an example, geopolitical tensions and trade restrictions can hit the availability of key materials, and logistical problems can further enlarge the delays. These disruptions affect not only the timeliness of product launches but are also likely to increase the total cost of production, thereby impacting the ability of the market to scale efficiently.

OLED-on-Silicon (OLEDoS) Market Ecosystem

The major players in the OLED-on-Silicon (OLEDoS) companies with a significant global presence include Sony Semiconductor Solutions (Japan), Seiko Epson Corporation (Japan), eMagin (US), BOE Technology Group Co., Ltd. (China),  SeeYA Technology (China). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint.

OLED-on-Silicon Market Segmentation

Consumer vertical to register highest CAGR during the forecast period.

It is expected that the consumer segment will be the fastest-growing in the OLED-on-Silicon market. This could be due to the increasing adoption of OLEDoS displays in consumer electronics, primarily in next-generation computing AR/VR headsets, smart glasses, and other wearable devices. Unique selling propositions of the OLEDoS technology in enhancing user experience. OLEDoS displays offer better image quality, higher pixel density, low power consumption, and compact form factor, which makes OLEDoS displays suitable for consumer vertical. It is predicted that the consumer electronics segment will majorly drive the market growth for OLEDoS displays with the ever-growing demand for more immersive and quality visuals.

Less than 1” OLEDoS display to account for the second largest share of OLED-on-Silicon (OLEDoS) market during the forecast period.

Less than 1" OLEDoS displays are expected to account for the second largest market share within the OLEDoS segment, driven by the increasing usage in electronic viewfinders, medical devices, thermal scopes, and AR smart glasses. The small displays have high pixel densities, leading to improved image quality and low power consumption, qualities the advanced applications require. It provides product demand for precision and reliable visual output for EVFs and medical devices while the popularity of its application in AR smart glasses and thermal scopes is on the rise, hence accelerating the adoption of less than 1" OLEDoS displays at a rapid pace.

OLED-on-Silicon Industry Regional Analysis

North America to account for the largest share during the forecast period.

North America is expected to account for the largest share of the OLED-on-Silicon (OLEDoS) industry due to the presence of established AR/HMD manufacturers like Apple and Meta.  These players are spending significantly in procurement for OLEDoS displays in order to bring enhanced image quality to HMD devices. In addition, the region benefits from leading OLEDoS display providers such as eMagin and Kopin Corporation, which are US-based but have huge operations and partnerships in Asia. Therefore, a potent combination of robust local demand from top AR/HMD manufacturers and availability of advanced OLEDoS display providers supports rapid market growth in the Asia Pacific region.

OLED-on-Silicon (OLEDoS) Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Top OLED-on-Silicon Companies - Key Market Players

The major players in the OLED-on-Silicon (OLEDoS) companies with a significant global presence include

• Sony Semiconductor Solutions Corporation (Japan), 
• Seiko Epson Corporation (Japan), 
• eMagin (US), 
• BOE Technology Group Co., Ltd. (China),  
• SeeYA Technology (China)

These players have adopted various organic and inorganic growth strategies such as service launches and developments, partnerships, collaborations, acquisitions, and joint ventures to strengthen their position in the OLED-on-Silicon (OLEDoS) market.

Want to explore hidden markets that can drive new revenue in OLED-on-Silicon (OLEDoS) Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

OLED-on-Silicon (OLEDoS) Market Highlights

The study segments the OLED-on-Silicon (OLEDoS) market based on product type, display size, vertical, and market type at the regional and global level.

Recent Developments

• In August 2023, Sony Semiconductor Solutions has announced a high-definition 1.3” 4K OLED microdisplay targeting enhancement of the experiential value for VR and AR head-mounted display devices. This new OLED microdisplay realizes 4K resolution with a large-size 1.3” display, by adopting miniaturization processes.
• In May 2023, BOE rolled out innovative display for AR/VR products, gaining eyeballs across the metaverse landscape. Its new 1.3” 4K4K Micro OLED VR Display provides users with vivid and highly immersive gaming and viewing experiences at a resolution of over 4000.
• In May 2023, eMagin launched more advanced version of its WUXGA microdisplay with a resolution of 1920x1200 pixels, brightness of 15,000 cd/m² in full color. Applications of this new high-brightness, high-contrast, high-resolution OLED-on-Silicon micro display include consumer, industrial, medical, and military.
• In June 2023, Kopin Corporation has launched the world's first ultra-high brightness (>35 000 nits), HDR green Organic Light Emitting Diode (OLED) microdisplay. This innovation HDR 1” diagonal SXGA 1280 x 1024 resolution OLED microdisplay is a breakthrough display technology designed to power the latest AR applications.

Frequently Asked Questions (FAQs):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst