OE-A Business Climate Survey 2025: Cautious growth and strategic investment in printed electronics
"While flexible and printed electronics companies are approaching 2025 with caution, there is evident confidence in long-term growth, particularly in key end-user industries such as consumer electronics, automotive and healthcare," said Dr. Alain Schumacher, OE-A Chairman and CTO of IEE in Luxembourg, commenting on the results of the OE-A Business Climate Survey at the LOPEC Press conference on 26 February in Munich, Germany.
The outlook for the flexible, organic and printed electronics industry has weakened compared to previous surveys. Growth expectations for 2025 have dropped significantly, with association members now forecasting a 9% increase in revenues - down from the 17% growth expected in the previous survey. "Although the growth forecast for 2025 has softened, companies are taking a strategic approach, emphasising innovation and long-term investment to overcome economic uncertainties. This forward-looking mindset is reflected in a more optimistic outlook for 2026, with projected growth rebounding to 13%," Schumacher added.
The bi-annual OE-A Business Climate Survey gathers insights from OE-A members across the value chain, including R&D institutes, material suppliers, manufacturers and end users. It provides qualitative data on industry trends, sales growth and market outlook, providing a snapshot of the current state and future direction of the industry. The survey is conducted by OE-A, an international working group within VDMA.
Wait-and-see situation
The international political and economic situation, particularly the crisis in the automotive industry, and the impact of the new administration in the US prevent better results. More uncertainties are caused by the pending formation of the government in Germany. In the survey, 51% of respondents said they planned to reduce investment in production over the next six months, a significant change from 37% in September. In terms of employment, 89% of members plan to hold current staffing levels, and 10% plan to increase their workforce. An encouraging trend is that 60% of respondents plan to increase their R&D efforts, up from the previous period. This cautious approach reflects the industry's adaptation to changing market conditions, as companies prioritise efficiency and long-term stability while managing potential risks in the current economic environment.
OE-A expects revenue growth of 13% by 2026
There are mixed signals for 2025, but 77% of responding OE-A members expect the printed electronics industry to grow in 2025 (Sept 2024: 58%). "These survey results show that the general economic trend has impact on the PE industry. Nevertheless, it continues to grow. Our industry makes strategic adjustments and invests in areas that will drive long-term growth. Sensor applications, whether for automotive, medical, sports or building technology, will play an important role in this. The increased activities in R&D and the stability of employment levels signal that companies are not only managing the current uncertainties but also preparing for a bright and innovative future in a rapidly evolving global market," summarised Alain Schumacher.
Organic and Printed Electronics Association (OE-A)
The OE-A (Organic and Printed Electronics Association) is the leading international industry association for flexible, organic, and printed electronics. The OE-A represents the entire value chain of this emerging industry. Its members are world-class global companies and institutions, ranging from R&D institutes, mechanical engineering companie and material suppliers to producers and end-users. 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 science, technology and application. The OE-A is a working group within VDMA. More than 3,600 member companies from the engineering industry make VDMA the largest industry association in Europe.
Caption: The OE-A business climate survey forecasts an 9 % increase in turnover for the industry this year. For 2026 a plus of 13 % is expected. (Image source: OE-A)
Source: OE-A
www.oe-a.org