Kodak and GE to Challenge 3M in BEF Film
(Dec 1, 2005) The market for prism Brightness Enhancement Film (BEF), now dominated by 3M, is forecasted to shift to a competitive fight as Kodak and GE gear up to challenge 3M. According to Senior Partner Carl Cobb of the McLaughlin Consulting Group (MCG) of Menlo Park, California (www.mcgweb.com), 3M’s key patent for BEF has expired. Competitors are also introducing advanced backlight technologies using precision-molded light guides. These reverse prism products will further erode 3M’s BEF film share.
The MCG forecasts, based on an industry survey, predict that from 2004 to 2009, the area of brightness enhancement products will more than double, rising 19.8% annually. During this period, MCG forecasts that 3M’s share of the BEF market (including competitive equivalents) will shrink to less than 50%.
Competitive suppliers are forecasted to enjoy annual growth of 68% per year. This opportunity has attracted a number of suppliers. Large companies such as Kodak, GE, Mitsubishi Rayon, Kuraray (Japan) and SKC (Korea) have entered or are considering entry.
But there is a bright spot in the market for 3M’s polarization recycling film product, DBEF. 3M has an opportunity to shift customers away from the competitive prism films to polarization recycling films. Polarization recycling film is a more recent technology where 3M holds a strong intellectual property (IP) position. DBEF is particularly valued in the fast-growing LCD TV market. How to price to maintain double digit volume growth and profit margins while holding on to share in BEF products is 3M’s challenge.
The MCG study Brightness Enhancement and Polarization Recycling: Opportunity Analysis and Forecast 2005 is based on interviews with LCD, backlight and film manufacturers in Japan, Korea and Taiwan as well as LCD branders in the US, Japan and Taiwan. The study consists of over 130 pages of data, forecasts, and analysis of the BEF/DBEF market as it is, and as it is expected to be. Also included are 55 pages of product specifications of 3M and other announced competitors. The study’s authors are MCG senior partners Steve Marsland and Carl Cobb.
To see the table of contents go to www.mcgweb.com/reports/bef2005toc.htm. For a more detailed description of the study go to www.mcgweb.com/reports/bef2005.htm. The study price is US$ 7,500 from MCG and includes both printed and electronic copies and a site license.
About MCG: The McLaughlin Consulting Group is a leading strategic business and market services company, focusing on providing decision support for the display industry. Founded by display industry veteran Charles McLaughlin, MCG provides forecasts, product evaluations, competitive research, and strategic opportunity analyses to decision makers worldwide.
The MCG team consists of seasoned display professionals with a broad background in technology, marketing, and business development Specific areas of market product focus include projection, personal, 3D displays, microdisplays, and outside-the-glass display materials and technologies. MCG is an expert resource for venture investment and M&A professionals. For further information, see www.mcgweb.com.