Global Thin-Film Encapsulation (TFE) Market Size, Share Analysis Report, 2023-2032
Global Thin-Film Encapsulation (TFE) Market Size, Share Analysis Report, 2023-2032

Thin-Film Encapsulation (TFE) Market Share, Size, Trends, Industry Analysis Report, By Deposition Type (Inorganic Layer Deposition and Organic Layer Deposition); By Application; By Vertical; By Region; Segment Forecast, 2023-2032

  • Published Date:Jun-2023
  • Pages: 116
  • Format: PDF
  • Report ID: PM3325
  • Base Year: 2022
  • Historical Data: 2019-2021

Report Outlook

The global thin-film encapsulation (TFE) market was valued at USD 91 million in 2022 and is expected to grow at a CAGR of 15.6% during the forecast period. The growing implementation of flexible OLED displays for smartphones and wearable devices and emerging trends associated with the use of thin-film encapsulation in inkjet printing along with the increase in investment in research & development activities to innovate more improved OLED technology and enhance the manufacturing facilities, are primary factors influencing the demand and growth of the global market. With the sure in the demand for renewable sources of energy and falling prices of solar panels globally, thin-film encapsulation is being widely used in photovoltaic cells to protect them from environment and enhancing their efficiency, that will lead the market growth in the near future. For instance, in September 2022, LG developed the OLED on silicon & color filter. This display is made up of 2.5 mm thick, that is enough to prevent light to leak out and also prevent colors of light from getting mixed.

Thin-Film Encapsulation (TFE) Market Size

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Moreover, the rapid increase in industrialization and addition in the number of end-user industries especially in the emerging economies like China, India, Taiwan, and Indonesia coupled with the surging solar panel manufacturing and installations in these countries have paved the way for higher growth of the market. The rising prevalence for electronic components and display panels from the automotive industry, which is likely to fuel the demand for semiconductors and display units will directly affect the market for thin-film encapsulation.

However, the high cost associated with the raw material licensing, equipment, and optimization of several processes required in the manufacturing activities are key factors hampering the global market growth. The emergence of the deadly virus has disrupted the supply chains and influenced the consumer purchasing decisions and spending behavior of various end-use industries. The pandemic also halted the production and other operations in the manufacturing sector due to imposed lockdowns and other movement restrictions by government bodies, thereby global market has had negative impact on the market.

Thin-Film Encapsulation (TFE) Market 2023 Report

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Industry Dynamics

Growth Drivers
Rising adoption of flexible OLED displays for wide range of consumer devices including smart wearables and smartphones coupled with the surge in the prevalence for microelectronics and requirement of thin-film encapsulation in numerous organic as well as flexible devices are influencing the market growth. Additionally, thin-film solar cells have gained immerse popularity globally, as it is easy to handle and flexible as compared to traditional solar cells, that is contributing towards the market growth in a positive way. The widespread acceptance of improved and highly-efficient solar cells worldwide because of growing investments in building OLED business facilities and roll-to-roll manufacturing of OLED lighting, are further creating lucrative growth opportunities for the global thin-film encapsulation (TFE) market over the coming years.

Report Segmentation

The market is primarily segmented based on deposition type, application, vertical, and region.

By Deposition Type

By Application

By Vertical

By Region

  • Inorganic Layer Deposition
  • Organic Layer Deposition
  • Flexible OLED Display
  • Flexible OLED Lighting
  • Thin-Film Photovoltaics
  • Others
  • Consumer Electronics
  • Automotive
  • Sports & Entertainment
  • Transportation
  • Retail, Hospitality, and BFSI
  • Education
  • Healthcare
  • Aerospace
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Inorganic layer deposition segment is expected to witness highest growth during forthcoming years

The inorganic layer deposition segment is expected to grow at a higher CAGR during the anticipated period, which is largely attributed to ability to provide barrier capabilities against oxygen and moisture. In addition, major companies operating in the market is introducing equipment based on the PECVD technology including applied materials, meyer burger, and aixtron along with this, these types of layer deposition would naturally have pinhole defects, allowing oxygen and water in long run, that positively affecting the market growth.

The organic layer deposition segment led the industry market in 2022, mainly due to wide range of benefits offered by these kinds of layers such as reduced fabrication cost and smooth plastic lasers. In addition, the wide use of these layers in inkjet printing and rising demand for inkjet printing in numerous sectors like commercial, education, and many others are also expected to fuel the segment market growth.

Flexible OLED display segment accounted for the largest market share during projected timeframe

The flexible OLED display segment accounted for major global market share in 2022, and is likely to retain its market position throughout the projected period. The growth of the segment market can be highly attributed to rapid increase in the adoption of these OLED displays in several branded smartphones including iPhone 12, 13, and 14 series among many others. Moreover, rising prevalence for flexible OLED displays in AR/VR headset and oculus Quest 2 across the globe and especially in high-income countries like US and Canada, are anticipated to create huge demand for the market. For instance, in October 2022, Apple, announced the company is expected to launch its new iPad Pro models soon with upgraded internals and potentially a new design. It comes with a hybrid OLED panel that uses glass substrate and the thin-film encapsulation of flexible OLED panels.

Consumer electronics segment held the significant market revenue share in 2022

The consumer electronics segment held the highest and significant market revenue share in 2022, which is mainly driven by extensive growth in the technological advancements in consumer devices and economic growth across the globe coupled with the rise in the sales of mobile displays globally due to new product launches and improved supply and demand environment for large panels. Moreover, the continuous surge in the internet penetration and easy access to fast internet facilities that led to emergence of various online shopping platforms and channels, have further boosted the demand for consumer electronics at significant pace in the recent years.

Asia Pacific region dominated the global market & Witnessed to maintain its dominance during forecast period

The Asia Pacific region dominated the global market with maximum market share, and is projected to maintain its dominance over the course of study period. The region is the world’s largest consumer and manufacturer of TFE equipment and materials and various large manufacturing plants related to TFE and flexible electronic device are based in countries like China, Japan, Taiwan, and South Korea. In addition, the drastic increase in the demand and production of solar cells in various APAC countries and mainly in China and high penetration for TFE materials for OLED displays in South Korea are other factors likely to have a positive impact on the regional market growth.

Europe region is also expected to witness considerable growth rate during the forecast period, owing to robust presence of large number of manufacturers of the OLED lighting panels, solar cells, batteries, & the architectural materials along with the substantial growth in the automotive and manufacturing industries in countries like Germany, France, UK, and Spain.

Competitive Insight

Some of the major players operating in the global thin-film encapsulation (TFE) market include Samsung SDI, LG Chem, Toppan, Ergis Group, Veeco Instruments, Applied Materials, Universal Display, Toray Industries, Ajinomoto Fine-Techno, Borealis, Meyer Burger Technology, Aixtron, Bystronic Glass, AMS Technologies, Angstrom Engineering, Kateeva, and BASF.

Recent Developments

  • In December 2021, Beneq, announced the expansion and broaden of its product portfolio with two new distinct solutions including Transform 300 & Prodigy. The Transform 300 is mainly designed to meet the rising need of semiconductor applications at 300 mm for the devices like CMOS image sensors, power devices, micro-OLED, & advanced packaging, that requires high degree versatility.
  • In August 2021, Ergis, introduced new OLED encapsulation film platform named Ergis noDiffusion. Company is highly focusing on testing its film solutions at the customer sites in Asia, EU, and the US and is further expanding the platform for the protection of quantum dot films utilized in several lighting applications and displays.

Thin-Film Encapsulation (TFE) Market Report Scope

Report Attributes


Market size value in 2023

USD 100.27 million

Revenue forecast in 2032

USD 369.69 million


15.60% from 2023– 2032

Base year


Historical data

2019– 2021

Forecast period

2023 – 2032

Quantitative units

Revenue in USD million and CAGR from 2023 to 2032

Segments covered

By Deposition Type, By Application, By Vertical, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

Samsung SDI Co. Ltd., LG Chem, Toppan Inc., Ergis Group, Veeco Instruments Inc., Applied Materials Inc., Universal Display Corporation, Toray Industries Inc., Ajinomoto Fine-Techno Co. Inc., Borealis AG, Meyer Burger Technology Ltd., Aixtron SE, Bystronic Glass, AMS Technologies AG, Angstrom Engineering Inc., Kateeva, and BASF.


key segments in the thin-film encapsulation (TFE) market are Samsung SDI, LG Chem, Toppan, Ergis Group, Veeco Instruments, Applied Materials, Universal Display, Toray Industries.

Thin-Film Encapsulation (TFE) Market Size Worth $369.69 Million By 2032.

The global thin-film encapsulation (TFE) market expected to grow at a CAGR of 15.60% during the forecast period.

Asia Pacific is leading the global market.

key driving factors in thin-film encapsulation (TFE) market are rising adoption of flexible OLED displays for wide range of consumer devices