According to Richard Son, principal analyst at IHS Markit, the AMOLED market continues to grow in the overall display market. After shipments accounted for 11% in 2016, AMOLED shipments are expected to climb to 22% in 2020. Benefiting from this, 2016 AMOLED packaging materials are expected to increase by 76% year-on-year, and sales will reach $111 million. AMOLED packaging technology is extremely important for the lifetime and reliability of OLED smart phones, OLED TVs and other AMOLED devices. The AMOLED encapsulation layer protects the organic light-emitting layer from moisture and oxidation, and also protects against physical impact. IHS Markit estimates that the AMOLED packaging area will reach 4 million square meters in 2016, a year-on-year increase of 62%. In 2020, the packaging area is expected to grow rapidly to 13 million square meters. At present, there are three main packaging technologies for AMOLED. Glass packaging technology is mainly used for smart phones and other small display panels, and glass packaging technology will also dominate the 2016 AMOLED packaging market. Metal packaging technology: In the early days of AMOLED development, metal packaging technology was also applied to AMOLED display panels for smart phones. Currently it is mainly used in AMOLED TV panels. Thin Film Packaging Technology (TFE): At present, the use of thin film packaging technology is becoming more and more popular in applications such as wearable devices and smart phones that use flexible display screens. IHS Markit estimates that sales in the glass packaging market will reach $62 million in 2016, accounting for 56% of the overall packaging market. However, with the increasing demand for AMOLED TVs, its area ratio will increase rapidly. Benefiting from this, the revenue share of metal packaging technology will exceed the glass packaging technology in 2017, reaching 53%.
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