The global market for optical films measurably experienced moderate growth during the COVID-19 pandemic. This low growth is the result of complete lockdown and closing down of manufacturing facilities. Also, disruption in the supply chain affected the global optical film market by delaying delivery, production, and other sales.
However, certain key vendors operating in optical films, such as Samsung Electronics Co. Ltd and LG Electronics Inc., are adopting certain strategies for staying upfront in the competitive environment. For example, Samsung Electronics Co. Ltd. and LG Electronics Inc., are focusing on reducing the operational cost of products to increase their profits. Along with this, consumers’ attitude has changed as they are spending more on essential items than fancy items. All such factors are predicted to moderately impact the global optical film market amid the pandemic.
Global Optical Films Market Analysis
The enormous growth of the global optical film market is mainly attributed to the increasing adoption of laptops and smartphones among the tech-savvy population. The main function of optical films in electronics is to change the properties of light and to enhance the image quality. Moreover, increasing work from home during the pandemic has further fueled the market for smartphones and laptops across the globe. Therefore, increasing demand for such electronic items will ultimately accelerate the market for optical films. Furthermore, laptops have wide applications in different areas starting from business, entertainment, and education; this will drive the adoption of electrical devices and finally the global optical films market. These types of aspects and elements are fueling the optical film market growth.
The investment cost of the optical film business is high as it needs high technology. Along with this, to start the business of optical films, the company needs approval from the government. Such key issues may create a negative impact on the market during the forecast period.
The increasing adoption of LED displays may create huge opportunities for the market in the future. Nowadays, LED displays are mostly used in advertising as video walls, which is one of the biggest driving factors of LED displays and ultimately optical films, which is expected to raise the demand for optical films.
Furthermore, the companies involved in global optical films are following effective strategies and launch of innovative products to grow in the market. For instance, in January 2020, LG Display announced that they have launched the latest technologies and displays in Las Vegas; the company introduced an OLED display that is 65-inch Ultra HD (UHD) and fully bendable along with a Full HD (FHD) Transparent OLED display that is 55 inches. Such technological advancements may further lead to lucrative market opportunities in the market in the upcoming years.
Global Optical Films Market, Segmentation
The global optical film market is segmented based on type, application, and region.
The type segment is further classified into polarizing film, ITO film, and backlight unit film. Among these, the polarizing film type sub-segment is anticipated to have the fastest growth as well as dominant share and surpass $19,015.60 million by 2030, with an increase from $9,462.40 million in 2021.
The market growth can be attributed to properties associated with polarizing films such as it allows the display screen to control the amount of light and it shows a clear image.
The application segment is further divided into television, smartphones & tablets, desktop monitors & laptops, large format displays, and others. The smartphones & tablets sub-segment is expected to be the fastest-growing sub-segment in the global market and register a revenue of $8,512.40 million during the analysis timeframe.
This growth is projected to increase owing to people’s preferences towards the craze of smartphones among the working population along with the growing penetration of the internet penetration. Moreover, rising marketing activities by key players in smartphones and the ongoing craze of social media are some of the key factors driving the global market of the optical films industry. These aspects may aid in the generation of lucrative revenue for the market throughout the forecast period.
The optical films market in the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $8,093.80 million in 2021 and is further projected to reach up to $16,646.20 million by 2030.
The demand for optical films is surging in the Asia-Pacific region specifically because of factors such as the increasing prevalence of smartphones and laptops in the region. Moreover, the strong presence of leading optical film providers and manufacturers present in China, Japan, and India will be one of the key factors for the growth of the market in the region. For instance, in 2019, Zeon Corporation, a Japan-based company, announced that they would expand their production capacity of optical film products along with expanding their business in Japan because of the high demand for optical films. Furthermore, Mitsubishi Chemical Corporation, a Japan-based company, in March 2018, revealed that it planned to expand its business by opening a new plant in Thailand for multilayer display films. All such factors are anticipated to boost the market in the Asia-Pacific region.
Key Players in the Global Optical Films Market
Some of the leading global optical films market players are
- LG Chem, Ltd.
- Samsung SDI
- Sumitomo Chemical Co., Ltd.
- Zeon Corporation
- Kolon Industries Inc.
- Nitto Denko Corporation
- Toray Industries Inc.
- Sanritz Co., Ltd.
- Hyosung Chemical