Hole Transport Layer Material Market - Forecasts from 2023 to 2028

The hole transport layer material market is estimated to grow at a CAGR of 9.81% during the forecast period.

Hole transport layer material refers to a type of layer with increased electron mobility and high electron affinity, which is used to optimize the stability and performance of electronic devices. It is a high-quality film, insoluble in the solvent used for emitting polymer. It allows holes to be transmitted from the anode to the organic layers by acting as a conductor between anodes and cathodes. The hole transport layer material market can be classified in the following ways: by type, application, and geographic region. The major drivers for the growth of this market include increased demand in several booming industries, such as automotive and semiconductors.

Market Drivers:

• Growth of the semiconductor industry.

Organic polymeric semiconductors are used in solar cells as hole transport layers, with additive or buffer layers depending on the requirements. Thus, hole transport layer materials are extensively utilized in the semiconductor industry. As semiconductor demand grows, the hole transport layer material market size will also increase. For example, the revenues of NXP Semiconductors N.V. posted annual revenues of US$13,205 million in the fiscal year 2022, an increase of over 16% from their revenues in 2021. Therefore, the growth of the semiconductor market will lead to a proportionate increase in the hole transport layer material market.

• Demand from the LED industry.

Hole transport layer material is used for light-emitting diodes (LEDs) used in modern lamps and screens because of their superior efficiency compared to conventional lamps and better lighting quality. The lifespan of bulbs is greatly extended due to the components of the LED and their light generation, which is expected to grow the hole transport layer material market size. For instance, the functional colorants segment of Hodogaya Chemical Group, which deals in the OLED materials business, increased revenue by over 5% from 2021 to 2022 and produced total revenues of roughly ¥17.5 billion in 2022.

High costs remain a key challenge.

A significant challenge faced by this industry relates to the high costs of LEDs per lumen, which hinders the industry's growth as it negatively impacts profitability. This acts as a major barrier during the initial stages of the business. LEDs are also temperature dependent, which affects their performance in the absence of optimal operating environments. Thus, these complexities and investment requirements hinder the growth of the hole transport layer material industry size.

Market Developments:

• In August 2022, Merck, a global leader in technology and life sciences, announced the acquisition of Mecaro Co. Ltd., based out of South Korea, as part of their “Level Up” growth plans. The acquired company is involved in manufacturing and supplying chemical precursors and heater blocks for semiconductors. This acquisition is expected to expand the regional as well as global capacities of the business of its electronics business and strengthen its footing in the semiconductor sector by expanding its portfolio in the semiconductor solutions segment.
• In January 2022, Researchers from Yachay Tech University conducted studies that found that inorganic and nanocarbon-based materials show suitable functionalities that make them ideal for usage as hole transporting layers for organics solar cells. This research is important because there is a need for organic solar cells due to an increase in global energy demand and a need for renewable energy sources to meet this demand. Therefore, these materials will facilitate the usage of organic solar cells.

Low cost of production of Organic Material.

The hole transport layer material market can be classified by type: organic material and inorganic material. Organic material refers to a kind of hole transport layer material made of organic molecules placed in semiconductor devices between the anode and active layer to allow for the flow of current in the device. Organic material constitutes a significant part of the hole transport layer material market share due to its low cost of production and flexibility in adjusting it to specific requirements.

Increasing demand for Inorganic hole transport layer materials

Inorganic hole transport layer materials include metal oxides, especially those containing transition metals such as molybdenum trioxide, tungsten oxide, etc., because of their higher hole mobilities. These materials are commonly used in organic light-emitting diodes as electron transport layers and find applications in other devices such as solar cells, light-emitting field-effect transistors, and light-emitting electrochemical cells. The demand for these inorganic materials is expected to increase due to an increase in the market for OLED screens. For example, Universal Display, a global leader in OLED manufacturing, posted revenues of US$169 million in Q4 2022 compared to US$146.2 million in Q4 2021.

The Asia Pacific region is expected to hold a significant share of the hole transport layer material market.

Asia Pacific is expected to constitute a significant share of the hole transport layer material industry, and similar trends are expected to be followed in the forecast period. This market share is owed to the growth in the industrial and automotive sectors in the region's major economies, such as Japan, China, and India, as well as the well-established electronics industries in countries like China, South Korea, and Japan.

Major players in the region.

China holds one of the world's largest electronics production bases and has the second-largest population after India. These are two key factors that will continue to increase the demand for hole transport layer material as the rising population raises the need for electronic devices in Chinese markets. In India, the focus on self-reliance has led to increased industrial growth nationwide, driving the demand for hole transport layer material being used in semiconductor and electronic applications. Large semiconductor manufacturers in South Korea, Taiwan, etc., are also boosting the regional market share.

Forecast on European and North American markets.

European and North American markets are expected to experience moderate growth too. The need for hole transport layer material in the United States is expected to see a surge in demand due to its demand from major semiconductor manufacturers such as Qualcomm, NXP Semiconductors, etc., as well as the presence of some of the biggest LED manufacturers such as Universal Display. These large manufacturers and several smaller industrial units will help grow the hole transport layer industry size.

Market Segmentation:

By Type

• Organic Material
• Inorganic Material

By Application

• Electronic Components
• Semiconductors
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others