Indium Gallium Zinc Oxide Market

Market Overview

The global indium gallium zinc oxide market size was valued at USD 2.01 billion in 2022. It is estimated to reach USD 5.62 billion by 2031, growing at a CAGR of 12.11% during the forecast period (2023–2031). The advancements in high-resolution technologies owing to the surging demand for connected devices are anticipated to spur market growth. The demand for energy-saving technologies further augments the global market growth.

Indium gallium zinc oxide (IGZO) is a compound semiconductor material including the chemical elements indium, gallium, zinc, and oxygen (O). The TFT backplane of flat-panel displays (FPDs)contains IGZO thin-film transistors (TFT). The electron mobility of IGZO-TFT is 20–50 times that of amorphous silicon, which is commonly used in liquid-crystal displays (LCDs) and e-papers. Thus, IGZO-TFT can enhance flat-panel display speed, resolution, and dimensions. It is currently used as the thin-film transistor in organic light-emitting diode (OLED) television displays.

IGZO exhibits superior carrier mobility compared to zinc oxide while also possessing the distinct benefit of being capable of homogenous amorphous phase deposition. The potential of a completely transparent transistor is made possible because although the transistors are slightly photosensitive, the effect only really becomes noticeable in the deep violet to ultra-violet (photon energy above 3 eV) region.

Market Dynamics

Market Drivers

Advancements in High-Resolution Technologies

The soaring trend of smart homes and buildings and the growing demand for connected technologies are significant factors driving the adoption of lower consumption and high-end displays across the consumer electronics sector. With many viewers consuming media from OTT platforms such as Netflix and Amazon, the need to store data effectively is becoming vital. According to Bitmovin, the market is moving toward a new generation of video codecs that provide 30% to 70% better compression than H.264.

Several players made strategic investments in advancing high-resolution display products in the market. For instance, in March 2021, Samsung Electronics launched its lineup of high-resolution monitors, intending to make the most of the work-from-home norms in many nations owing to the COVID-19 pandemic. The company released 12 different monitors across three series—the S8, S7, and S6—all models offering more than 1 billion colors, a 178-degree wide viewing angle, and enhanced high resolution and dynamic range ten technology. Consequently, these advancements are expected to boost market growth.

Emphasis on Energy-Saving Technologies

The IGZO displays consume less power for backlighting or illumination in LED panels than amorphous silicon(a-Si). The display is designed with numerous IGZO TFTs that continuously switch on and off depending on the contents being displayed on the screen. The expansion in cloud-based virtual personal assistant service for most wearable devices, including innovative features, is expected to drive real-time features across a connected environment.

Developments in the operating systems integrating with medical hardware in the smartwatch and AI-based behavioral analytics are expected to boost innovations in personal assistance technologies. This drives manufacturers to design wearable displays with IGZO thin-film transistors, as power usage can be minimized with state retention in IGZO TFTs. Thus, using IGZOs offers low refresh rates, which yields reduced power consumption of up to 50%, thereby boosting market expansion.

Market Restraints

Competitors Such as Low-Temperature Polycrystalline Silicon (LTPs)

Various limiting factors for using IGZO instead of LTPS or a-Si: H are still under consideration. In contrast to LTPS, the mobility of a-Si: H is limited; still, LTPS is the better option for the majority of AMOLED or AMLCD screens. Some factors, such as p-channel TFTs, are not available using IGZO. Compared to LTPS, IGZO has a lower electron mobility. It does not seem easy to design a backchannel etch method like the one now utilized in sophisticated a-Si: H TFT manufacture due to the extreme sensitivity of IGZO surfaces. Thus, these limiting factors of IGZO are anticipated to restrain market expansion.

Market Opportunities

Increasing Investment and R&D by Key Players

Increasing investment in IGZO by key players is anticipated to generate potential market opportunities. For instance, in July 2021, Samsung Display and LG Display will invest more than KRW 7 trillion in tiny and medium-sized organic light-emitting diode (OLED) production lines. This is done to prepare for the rise in demand for small and medium-sized OLEDs, bringing attention to revitalizing downstream industries such as OLED "materials, parts, and equipment."

Increased R&D activities in the IGZO industry are leading to product innovation being witnessed by the market. For instance, BOE developed a new technology in February 2022 that resulted in the construction of the world's first 500Hz gaming monitor, shortly providing players with a more fluent gaming experience. A growing emphasis on increasing production capacity among key participants is anticipated to create significant growth opportunities. China Star Optoelectronics Technology (CSOT), a China-based display panel manufacturer belonging to the TCL Group, will build up an 8.6G oxide TFT-LCD production line in December 2021, with production slated to commence in early 2022.

Regional Analysis

Based on region, the global indium gallium zinc oxide market is bifurcated into North America, Europe, Asia-Pacific, and the Rest of the World. 

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global indium gallium zinc oxide market shareholder and is estimated to exhibit a CAGR of 12.42% during the forecast period. The region witnesses the fastest growth because of the increased penetration of consumer electronic devices, such as wearables, smartphones, televisions, laptops, etc. IGZO-TFT and its applications are patented by JST (Japan Science and Technology Agency) and are licensed to Sharp. Japanese company Sharp was the first to begin manufacturing LCD panels with IGZO-TFT. Sharp's adoption of IGZO-TFT in 32" LCDs, tablets, and smartphones effectively dominates the market.

In addition, advancements in networking, computing, and telecom industries increase the need for small and robust semiconductor devices in this region. This impacted the demand for fabrication materials to develop high-performance semiconductor components, driving the IGZO demand. Due to the advantageous governmental policies pertaining to foreign direct investment (FDI), multinational corporations frequently provide high-quality televisions at competitive price points. For instance, in February 2018, Xiaomi, a Chinese firm, launched its 55-inch LED TV, which had a high demand among consumers and increased demand for display panels, thereby fostering the growth of the indium gallium zinc oxide market.

North America is estimated to exhibit a CAGR of 11.49% over the forecast period. The demand for consumer electronics is on the rise in the region. With increasing health consciousness, wearables, such as smartwatches, have increased recently and are expected to continue during the forecast period. Moreover, Google stated that it sees a massive opportunity in introducing made-by-google wearable devices and will invest more in wearable technology. For instance, in January 2021, Google completed the acquisition of Fitbit for USD 2.1 billion. The company's acquisition of Fitbit will strengthen its presence in the wearables market. The acquisition came after a separate deal in which they agreed to purchase Fossil Group's intellectual property related to smartwatch technology. Such investments also provide opportunities for IGZO displays.

In addition, IGZO displays are currently reserved for premium electronics due to their high costs. However, rising disposable income and rapid urbanization are expected to increase the demand for premium products and drive the growth of IGZO displays.

Europe witnessed increasing demand for television. According to Statista Advertising and Media Outlook, the penetration of TVs in Europe is expected to reach 84.9% by 2025. This is expected to provide more opportunities for IGZO manufacturers. Automotive players also partner with the smartwatch vendors in the market to use users' health data and create a better driving experience. For instance, as part of their Fit & Healthy project, Garmin partnered with automaker Daimler AG to integrate wearable technology into Mercedes-Benz vehicles. Such developments are expected to expedite market growth. Governments also use smartwatch capabilities to monitor citizens' health data, especially since the Covid-19 pandemic. For instance, in April 2020, Germany enlisted Fitbit Wearables and Smartwatches. The country's Center for Disease Control advised people with fitness bands and smartwatches to share their health information to help track the coronavirus's spread. Such government initiatives drive opportunities for IGZO manufacturers.

The rest of the world primarily comprises Latin America and the Middle East and Africa, with countries like Mexico, Brazil, and the United Arab Emirates. The segment is expected to provide significant opportunities for IGZO manufacturers. The geriatric population suffering from numerous diseases creates a shift from in-home care to a more precision-based personal care model. The Middle East and African aging population may require increasingly constant monitoring, thus driving the demand for new health tracking devices during the forecast. In addition, fashion and functionality are major aspects driving the smart wearables segment in the United Arab Emirates. Consumers increasingly seek sleek designs and trendy interfaces. The next wave of growth for smart wearables is expected to rise from adoption by value-seeking consumers and existing fitness band owners enhancing their smartwatches. Thus, this trend increases opportunities for IGZO display manufacturers.

Segmental Analysis

The global indium gallium zinc oxide market is segmented by application and end-user.

Based on application, the global indium gallium zinc oxide market is bifurcated into smartphones, wearable devices, wall-mounted displays, televisions, tablets, notebooks, and laptops, and other applications. 

The smartphone segment dominates the global market and is projected to exhibit a CAGR of 11.14% over the forecast period. IGZO displays can provide customers with better multitasking capabilities on mobile devices. In the case of smartphones, IGZO displays can drain less battery while multitasking and extend the battery's longevity. Various researchers have been working on making flexible IGZO displays for about two decades. In 2012, Bill Liu and some Stanford engineering graduates set out to commercialize IGZO flexible displays by launching Royole Corp., the first commercial smartphone with a bendable FlexPai display that folds closed with the screen still visible on the outside.

Furthermore, IGZO displays are expected to provide future growth opportunities to smartphone manufacturers. The use of these IGZO displays smartphones is likely to witness augmented growth if the manufacturers can lower the cost of producing the components of these devices, such as IGZO OLEDs, chips, sensors, and batteries specifically designed for these devices.

Retailers strive to update the user-interactive screens in real-time to reflect the current trends in in-store age or gender demographics to promote specific items or remove sold-out products from the screen. This is further driving the studied market. In addition, most millennial shoppers visit retail stores for an interactive experience. Most global retailers maintain over 1,000 stores, increasing the demand for wall-mounted displays. Universities in North America are also leveraging the application of wall-mounted digital displays on campus. For instance, the Rotman School of Management, Canada, doubled its size by investing over USD 93 million; with this expansion, the school is interested in installing engaging and effective navigation on the campus to keep visitors well-versed with information. These developments and growth are boosting the market studied.

Based on the end-user, the global indium gallium zinc oxide market is segmented into automotive, consumer electronics, healthcare, industrial, and other end-user industries. 

The consumer electronics segment owns the highest market share and is estimated to exhibit a CAGR of 10.89% during the forecast period. Smartphones, laptops, desktops, televisions, and smartwatches are the major segments in the market driving consumer electronics. With the surging internet penetration across the globe, the advent of 5G technology for network modernization and vitalizations, and mobile and online gaming have increased the demand for display panels with high refresh rates. In addition, the implementation of IGZO panels in notebooks, tablets, and monitors started in 2013 when Sharp started its product line of IGZO LCD panels for such consumer products. IGZO allows a tablet maker to offer a pixel-dense display that is easier on battery life than standard "amorphous" TFT LCDs. Thus, these panels are extensively used in some of the best laptops, including the Dell XPS 13 and the Razer Book 13.

IGZO panels are installed in modern automotive vehicles' navigation, media, and entertainment interfaces. The smart interface to pair with smartphones and the internet has driven the demand for graphical interfaces in such systems, thus driving the growth of IGZO TFT panels. Several market leaders are working on commercializing this new technology owing to its power consumption benefits and high electron mobility rate. Companies such as Sharp Corporation developed a high mobility top gate IGZO-TFT for automotive OLED display panels. IGZO-TFT also shows high mobility with an enhanced threshold voltage. As a result, the company fabricated a prototype 12.3" ultrawide OLED display with high brightness uniformity.

Recent Developments

• August 2022- Sharp Electronics Corporation Device Division (SECD) announced that its new 5.0-inch Class (diagonal) Reflective IGZO (R-IGZO) display for handheld applications is now available with backlighting. This update adds flexibility for achieving excellent sunlight readability with exceptionally low power consumption.