The market for organic materials used to manufacture organic light-emitting diode (OLED) display panels jumped during the second half of 2017, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. The market, as measured by revenue, was estimated to be $355 million in the second half of 2017, up 20 percent from the first half of the year.

According to the OLED Materials Market Tracker by IHS Markit, in 2016 and the first half of 2017, the OLED materials market seemed saturated, posting revenues at almost the same level. However, the sudden spike in growth was observed in the second half of 2017.

“The growth of OLED materials demand has been offset by price reduction, resulting in the market saturation until mid-2017.” said Jimmy Kim, Ph.D. and senior principal analyst at IHS Markit. “However, the launch of the iPhone X as well as the expansion of OLED panel manufacturing capacity boosted the demand in the second half.”

The iPhone X, Apple’s first OLED panel-using smartphone, was launched in the third quarter of 2017 and it brought a huge additional demand for OLED materials. At the same time, LG Display has set up a new E4-2 fab for OLED TV panels.

“Apple is expected to apply OLED panels to more of its products and OLED TV is also one of the most emerging products in the TV market,” Kim said. “Considering demand growth and current investment plans regarding OLED manufacturing capacities, the OLED materials market is expected to continue to grow until 2020, reaching $824 million by the second half of 2020.

The OLED Material Market Tracker by IHS Markit includes market analysis and forecasts for organic light-emitting materials, consumption of the materials by AMOLED panel makers, and the status of organic light-emitting materials suppliers.