The OLED display market is the primary target market for Noctiluca. It is estimated at over $30 billion (2020) and growing at the rate of 26% annually in the next 4 years (Source: Display Supply Chain Consultants).
The OLED display market is very concentrated due to the high barriers of entry caused by two main factors:
- the OLED display device is costly due to the use of the PVD method of OLED manufacturing (right now over 90% of the market); PVD production infrastructure costs several billions EUR,
- the low availability of chemical compounds to develop and produce OLEDs, which is especially an issue for small players – OLEDs consist of multiple thin layers (OLED stack); some of these layers require using of highly sophisticated chemical compounds; each OLED producer has a unique composition of the layers, so most of them require:
- for the product development process highly trained and adept chemists who can design needed compounds for the unique OLED stack,
- custom synthesis cooperation with a third party or own lab to custom synthesize these compounds for testing,
- an expensive production line for chemical compounds at an industry scale once the target chemical composition of the OLED stack is chosen.
There are two international players considered as direct Noctiluca competitors in the market of 3rd and 4th generation of OLED emitters and products made of them – Cynora and Kyulux.
Of the two, only Kyulux is able to deliver a commercially accessible emitter (with yellow emission color). However, in the PVD application method only. They have no commercially validated success in inkjet applications. Cynora (despite having raised over USD 60m) have not reached any commercial milestone yet.
Noctiluca has developed a proprietary emitter family, out of which comes an emitter (green emission) and host. The sample is used by our German client and in the next 6 months will be a part of a commercially available OLED panel made in the inkjet printing technology, Noctiluca is taking a step further into cementing its technological leadership in the inkjet segment by introduction of the new standard – a use of a base ink with TADF emitters, that will be compatible with leading inkjet printers on the market. The above proves our technological disruptiveness and excellence at the global level.
Moreover, even if a new player enters, Tier 1 clients (e.g. Samsung, LG, BOE, Lenovo, Apple, etc.) want to maintain a healthy balance of their suppliers and avoid a “vendor lock-in”, so there will be enough room for all the competitors, especially from outside of Asia. Due to that, there is an urgency for new emitter generation and new emitter producers.
To summarize, Noctiluca is providing a breakthrough product in the cutting-edge state-of-the-art generation of emitter technology, that has a potential to create whole new markets.
Noctiluca’s business model will be based on three core revenue streams:
- Revenue from custom synthesis of high-purity compounds,
- Revenue from sale of our own proprietary OLED materials to smaller OLED manufacturers, who don’t have their own production capacities,
- Revenue from licensing of our own proprietary IP to Tier 1 players.