UK analyst IHS Markit estimates that production of flexible AMOLED panels will increase from 1.5 million square meters in 2016 to 20.1 million by 2020, an increase of 91%.
While rigid panel capacity plateaus, IHS forecast that the demand for flexible panels will increase as more smartphone manufacturers adopt AMOLED technology in their devices.
Charles Annis, Senior Director at IHS Markit said,
“AMOLED displays will offer excellent image quality and form factor advantages in high-end phones. Despite excessive capacity availability, the challenge to faster adoption will be costs. High manufacturing costs for most makers will keep average rigid AMOLED panel prices 40% above equivalent LCD panels, while flexible AMOLED panel prices will remain 100% higher.
Smartphone makers, targeting mid and low-end market segments, may want to buy flexible AMOLED panels, but are likely to be restricted by lingering high prices”.
The increase in flexible AMOLED production capacity is expected to bring costs down over time, but IHS analysts predict a period where the technology will only be available in smartphones targeting high-price purchasers.
IHS estimates that there are 46 new flexible fabs being built.
