OE-A Business Climate Survey: 2024 slowdown, 2025 set to shine
A revenue forecast of plus 19% for 2025 shows a positive outlook for the printed electronics industry in the future.
"While the printed electronics industry faces near-term challenges due to global economic uncertainties and a cooling automotive sector, we remain optimistic about the future. The reduced growth forecast for 2024 reflects a cautious wait-and-see attitude, but with strong signals for a rebound in 2025," said Dr. Klaus Hecker, OE-A Managing Director, commenting on the results of the latest business climate survey. The biannual survey is conducted by the OE-A (Organic and Printed Electronics Association), a working group within VDMA, headquartered in Frankfurt am Main, Germany. The survey predicts revenue growth of 7% for 2024, a significant decrease from the previous survey (March 2024: 13%).
However, optimism remains high for 2025, with a forecast growth of 19%. "It is encouraging to see that companies are prioritising innovation, as evidenced by the increased focus on R&D and employment growth. We believe that by focusing on key sectors such as consumer electronics, automotive and medical, the industry is well positioned for sustainable long-term development," emphasises Klaus Hecker.
OE-A predicts 19% sales growth in 2025 compared to 2024
The revenue forecast of plus 19% for 2025 shows a positive outlook for the printed electronics industry in the future. However, for 2024, the growth rates for both revenue forecast and order intake are significantly reduced compared to the results of the March 2024 survey.
The industry is facing headwinds from global economic and geopolitical hurdles, as well as a slowdown in the automotive sector, especially EV, resulting in reduced and delayed orders. Only 6Percentof companies plan to increase production investment over the next six months (down from 53% in March 2024), although a majority (57%) will maintain investment levels.
Bright prospects for 2025
As the printed electronics industry navigates these turbulent waters, the signs for 2025 point to a promising horizon of opportunities for growth and progress. Encouraging signs are emerging in both employment and research and development (R&D). The latest results indicate a significant shift in the employment landscape, with 46% of companies planning to increase their workforce over the next six months. This is a turnaround from March 2024, when only 7% of firms expressed intentions to hire more staff.
In addition, there is a notable increase in R&D activity, with 46% indicating plans to expand their R&D efforts. "This commitment to innovation underscores the industry's determination to remain competitive and adapt to changing market conditions. By prioritising R&D, companies are positioning themselves to take advantage of emerging trends and opportunities, ensuring long-term growth. This innovative strength will be on display at electronica next month and at LOPEC 2025," concludes Klaus Hecker.
The OE-A (Organic and Printed Electronics Association)
The OE-A (Organic and Printed Electronics Association) was founded in December 2004 and is the leading international industry association for flexible, organic and printed electronics. The OE-A represents the entire value chain of this emerging industry. Members include world-class global companies and institutions, ranging from R&D institutes, mechanical engineering companies and material suppliers to producers and end-users. Well over 200 companies from Europe, Asia, North America and Africa are working together to promote the establishment of a competitive production infrastructure for organic and printed electronics. The vision of the OE-A is to build a bridge between the scientific, technological and application communities. The OE-A is a working group within the VDMA (German Engineering Federation). More than 3,600 member companies from the engineering industry make VDMA the largest industry association in Europe.
Source: OE-A