Organic Electronic Market

Market Overview

The global organic electronic market size was valued at USD 81.29 billion in 2022. It is projected to reach USD 445.28 billion by 2031, growing with a CAGR of 20.8% during the forecast period (2023–2031).

Organic electronics, as opposed to conventional inorganic semiconductors, are built with organic (carbon-based) polymers or molecules and artificial technology developed in organic and polymer chemistry. Organic electronics are constructed from various materials, including semiconductor materials, conducting materials, dielectric materials, and substrate materials. In addition, these materials are utilized in various applications, including displays, lighting, batteries, conductive ink, and others, which increases the demand for organic electronics.

An increase in demand due to the adoption of technologies supporting sustainable development, demand for various applications, and the need for organic electronics in the latest technologies are the factors that drive the organic electronics market growth. In contrast, the degradation of the efficiency of organic electronics after a time period and technical in-compatibility hampers the organic electronics market growth. However, the increase in R&D activities for various applications is expected to create an organic electronics market opportunity.

Market Dynamics

What are the factors driving the market growth?

Increase in Demand due to Adoption of Technologies Supporting Sustainable Development

Over the years, the development of environment-friendly electronics and their adoption has picked up the rate of its penetration. The use of clean energy, such as organic batteries use of biodegradable materials for technological developments, such as OLEDs, increases the market demand for organic electronics. As organic devices are easier to dispose of in the environment and so also are promoted by governments across the world. Further, organic electronics operate on low energy, thereby providing energy-saving solutions.

The Demand for Various Applications

The need for organic films in display screens for enhanced performance in terms of color, brightness, contrast, and refresh rates raises the market demand. Modern-day lighting and display technologies are major sectors of application for organic electronics. Organic semiconductors are also in demand for smart textiles. Smart textiles can sense and respond to various environmental conditions, such as mechanical and thermal, and have the ability to share & exchange information with other devices. These textiles are used in applications such as healthcare, military & security, and entertainment. In the healthcare sector, organic semiconductors have applications in skin cancer treatment. Therefore, increasing applications in various end-use demands the use of organic electronics.

What are the factors restraining the market growth?

Degradation of Efficiency of Organic Electronics After a Period and Technical In-compatibility

Organic electronics, however, have a few disadvantages; one among them is their efficiency degradation over time. For instance, OLED TVs, over a defined period of time, start to lose the quality of display output, that is, in terms of brightness and vibrant colors. Although organic electronics manufacturing is cost-effective compared to conventional technologies, the technology is new in the market and, therefore, requires skilled engineers, scientists, and developers to develop organic electronics, which increases the overall cost to the user. Furthermore, it is difficult to integrate organic electronics technology with the conventional technologies used in the semiconductor industry. Therefore, the above factors hamper the organic electronics market growth.

What are the future opportunities for organic electronics?

The Increase in R&D Activities for Various Applications

The rise in R&D activities has produced opportunities for organic electronics in various applications in consumer electronics, automotive, and healthcare, among others. The technology can be used for developing flexible LED displays and PCBs that can be rolled up and down in the pocket of the user and change shape and form when any sort of external pressure is applied. Organic electronics is a fast-growing multidisciplinary field of science and technology, which is based on the unique electrical and optical properties of conjugated organic small oligomers, polymers, and molecules. Therefore, R&D of organic electronics for utilization in newer applications is paving the way for various opportunities for applications in electronics and optoelectronic devices.

Regional Analysis

The market for organic electronics is segmented into four regions: North America, Europe, Asia Pacific, and LAMEA.

Asia Pacific dominates the organic electronics market and is growing with a CAGR of 21.9%. The region has industries such as semiconductors, electronics, automotive, IT & software, among others. These industries utilize organic electronics and, therefore, increase demand in the market. The region includes nations with high population density, such as China and India, thereby holding a larger scope for the organic electronic market penetration. The developed and developing countries in the region witness increasing income of the people, which provides them the ability to purchase the latest market offerings. Further, a rise in awareness for sustainable development and the use of low-power consumption systems and machines pave the way for greater market opportunities.

The North American market for organic electronics is growing at a CAGR of 20.6%. North America is one of the most developed regions. The major industries in the region comprise IT & software, consumer electronics, and automotive, among others. The industries demand various applications for organic electronics, thereby increasing the market demand. The U.S. and Canada are developed nations that witness higher penetration of the latest technologies, enhanced adoption of sustainable development technologies, higher disposable income, and higher penetration of the latest display technologies drive the market for organic electronics in the region. Mexico is a developing region with higher economic growth and strengthening industries. Furthermore, the innovation of OLED and AMOLED displays has increased the demand for premium display devices with organic films. Therefore, increasing the market demand.

The European market for organic electronics is growing with a CAGR of 20.5%. Europe has developed and technologically advanced countries. Automotive, biotechnology, electrical & electronic industries are some of the major industries in the region that demand the utilization of organic electronics. The region witnesses a high penetration rate of sustainable technology, and the awareness among people toward organic electronics regarding low power consumption is one other factor for the growth of organic electronics market demand. Further, higher-income of people in the region prefers the latest and premium technology products. Therefore, organic batteries, organic display monitors, smartphones, and TVs possess demand in the European market. Furthermore, the adoption of organic displays in the automotive electronic market further creates lucrative opportunities. Moreover, organic batteries for futuristic electric vehicles pave the way for future demand.

The LAMEA region comprises mostly developing nations and underdeveloped countries, creating a wide opportunity for market players to invest. The region has automotive manufacturing, IT, electronics & communication, among others, as its major industries. These industries utilize organic electronics in various applications in consumer electronics such as OLED TVs, AMOLED smartphones & laptops, and others. The region seeks high investments from market players for technological development, which is expected to create market opportunities.

Segmental Analysis

The market for organic electronics is segmented based on material and application.

The material segment is categorized into semiconductor, conductive, and dielectric & substrate.

The semiconductor segment dominates the market, registering a CAGR of 21.4%. Organic semiconductors are non-metallic materials that offer semiconducting properties. These semiconductors have several advantages in comparison to inorganic semiconductors, such as mechanical flexibility, lightweight, and low cost, thereby offering the opportunity to develop devices using low-cost fabrication techniques. Due to the rise in awareness for sustainable development and as organic semiconductors are biodegradable, they are preferred over its counterpart. Organic semiconductors are easy to reform using structural modifications by changing the installation of various functional groups or shape, which in turn offer more photo-luminescent conductivity, and enhances their performance to gain more efficient new-generation electronic device designs that pave the way for new opportunities which are not possible with inorganic materials in the electronics industry.

The application segment is classified into displays, lighting, battery, conductive ink, and others.

The display segment dominates the market and is growing with a CAGR of 21.6%. Displays are digital screens that provide pictorial outputs to the users in the form of visuals such as videos. The sector of organic electronics uses Organic-LEDs (OLEDs) among the latest and most advanced display technologies. OLED displays are used in mobile phones and laptops, most prominently in televisions and other display panel electronic devices. The OLED display offers numerous benefits to its users, including improved image quality in terms of contrast, brightness, viewing angle, color range, and refresh rates, as well as lower power consumption and much faster refresh rates. The advantages have also allowed the displays to be ultra-thin, flexible, foldable, and transparent. The latest OLED technology, known as Active Matrix OLED, has further enhanced the conventional OLED display performance.

The lighting segment is growing with a CAGR of 21.5%. The lighting sector offers consumer laminating technologies that provide better illumination with minimal power usage. Lights have major applications in infrastructure development. Further, their market demand is expected to rise with the adoption of smart and sustainable technologies.

Recent Developments

• May 2022- InnovationLab GmbH acquired the TAeTTOOz® materials technology for printable rechargeable batteries from Evonik. The InnovationLab specializes in the development of organic electronics and provides custom-tailored solutions from the initial concept sketch to industrial production.
• August 2022- Researchers from the Chalmers University of Technology identified a simple modification that could double the efficiency of organic electronics. OLED displays, plastic-based solar cells, and bioelectronics are a few of the technologies that could benefit from their discovery concerning "double-doped" polymers.