Taiwan – The global organic LED or OLED lighting market is forecast to reach $14 billion by 2020, according to projections by the Taiwan-based Industrial Technology Research Institute’s (ITRI) Industrial Economics and Knowledge (IEK) Center.
The product line, set to enter mass production in 2011, will be driven by breakthrough applications in specialized lighting, such as for exhibits. Other promising applications predicted to fuel OLED lighting are from the general, automotive and indicator lighting and backlighting segments.
ITRI-IEK reports that there are 56 OLED lighting suppliers in the market currently, 27 of which are engaged in OLED materials supply.
Major conventional lighting products makers Osram, Philips and GE are working closely with Taiwan suppliers in component R&D and intellectual property (IP) sharing to develop new lighting products.
Taiwan banks on strong supply chain
The strong manufacturing supply chain of electronic components puts Taiwan in a strong position to become a prime sourcing center in the OLED-making industry.
The island’s expertise in OLED lighting technology allows manufacturers to implement cost-effective manufacturing processes, earning them wider profit margins.
Although most Taiwan manufacturers have experience in OLED lighting technology, very few are engaged in OLED conventional light bulb production. Taiwan-based suppliers RiTdisplay Corp. and Chi Mei El Corp. are more focused in OLED display panel manufacturing.
OLED lighting offers Taiwan makers a great opportunity to diversify their product lines. Nevertheless, many challenges still lie ahead. For instance, there is no standard yet as to the luminance required for various lighting applications. OLED lighting requires at least 1,000 cd/m2.
Another issue that needs to be addressed is the life expectancy of OLED lights. Products should last more than 10,000 hours, especially for general-purpose lighting.
Under present global economic conditions, the high production cost of OLED lighting will be the main obstacle that Taiwan makers need to hurdle.
OLED lighting a hot item
The potential market for OLED lighting presents a great business opportunity for Taiwan makers. According to ITRI analyst Bor-Feng Jiang, OLED lighting is fast becoming a hot technology in most Western countries.
OLED lighting is preferred for its potentially high performance, wider light source coverage and fast switch-on. It is also energy-efficient and recyclable, making it a suitable choice for “green” buildings and architectures.
Aesthetically, OLED lighting offers various design options, as it comes in multiple colors, paper-thin construction and mirror-like finish.
However, the product line is still an emerging concept for makers on the island.To take advantage of the booming demand for OLED lighting, Taiwan makers have signed agreements with leading conventional light bulb manufacturers Philips and Osram to share the two makers’ patented OLED lighting product designs.
OLED lighting manufacturing has many aspects similar with OLED display panel making, said Jiang. Taiwan OLED display panel makers should not find it too difficult to transition into OLED lighting because of their wide experience and expertise in OLED technology.
