GCC AND LEVANT LED AND OLED LIGHTNING PRODUCTS AND DISPLAYS MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

Increasing deployment of FPDs in various sectors is expected to drive growth of the GCC and Levant LED & OLED lighting products and displays market during the forecast period. In the Middle East, various sectors such as travel & tourism, retail, and hospitality are increasingly adopting FPDs, which in turn, is expected to witness massive demand for LED and OLED products. In restaurants, customers are encouraged to select food from menus on tablet devices. In hospitals, doctors monitor patients’ health through interactive display screens. 3D presentations and conferencing solutions are rapidly becoming popular with corporates. For instance, in 2013, at Gitex Technology Week, Sharp Middle East FZE showcased a gesture-controlled interactive wall display and a mirror-like monitor display for application in the retail sector.

Constant technology development in monitor display is expected to propel the GCC and Levant LED & OLED lighting products and displays market growth over the forecast period. Major companies in electronic industry are focused on technological advancements in monitor display technology for laptops and PCs. There has been increased popularity for touchscreen displays and Ultra HD displays. Introduction of touchscreen laptops and monitors by major market players such as Dell and Lenovo, 4K Ultra HD displays by Dell, Asus, and Samsung and MacBook Pro Laptop with retina display by Apple Inc. is expected to propel the GCC and Levant LED & OLED lighting products and displays market growth in the near future.

Market Opportunities

OLEDs offer various unique properties such as transparency, surface light source, and flexibility. Certain major players and start-ups operating in the LED products market have started manufacturing and offering OLED lighting products. There are significant growth opportunities for other key players in OLED lighting products. However, efficiency of these lighting systems is comparatively low at present, but substantial investment in OLED technology development is expected to enable key players to introduce more energy- and cost-efficient lighting products in the near future.

Growing implementation of flexible displays can provide lucrative growth opportunities. Demands for a thin and light display that can increase mobility and endure shock such as flexible displays (displays that can be bent or folded) can create potential revenue opportunities for players in the LED and OLED displays market. In light of such developments, major players have flexible displays or prototypes using flexible display technology. For Instance, in 2014, Sharp introduced a free-form display device that can be used to customize LCDs into any shape required.

Market Dynamics- Restraints

High initial cost of LED displays for fixed installations is expected to hamper growth of the GCC and Levant LED & OLED lighting products and displays market during the forecast period. Average cost of a commonly used 3x2 meter LED display varies between US$ 15,000 and US$ 25,000. This is significantly higher as compared to conventional advertisement media such as textual banners and printed hoardings. High initial costs of outdoor LED displays for fixed installations deter customers from purchasing these outright. They instead opt to rent such displays. 

Rapid transition towards superior display technologies is expected to hinder the GCC and Levant LED & OLED lighting products and displays market growth over the forecast period. Since the global LCD market is highly saturated with the presence of major manufacturers such as Panasonic, Samsung, and LG. However, the introduction of more advanced technologies such as LED and OLED has led to a massive transition from conventional display to the aforementioned energy-efficient and high contrast displays. Most flat panel display (FPD) manufacturers of LCD panels are shifting towards flexible LED displays, in order to gain a competitive advantage in the market.