- Revenue growth of nine percent expected in 2025, down nearly 10 percentage points from September 2024
- Research and development innovation is driving optimism amid market uncertainty
The Organic and Printed Electronics Association (OE-A) Business Climate Survey outlook released earlier this year found for the flexible, organic and printed electronics industry has weakened compared to previous surveys
Growth expectations for 2025 have dropped significantly, according to Dr. Alain Schumacher, OE-A Chairman and CTO of IEE, with association members now forecasting a nine percent increase in revenues, dropping from the 17 percent growth expected in the previous survey.
“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. Schumacher in a statement with the survey’s release.
2025 Projections
The 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.
“Although the growth forecast for 2025 has softened, companies are taking a strategic approach, emphasizing innovation and long-term investment to overcome economic uncertainties,” said Schumacher. “This forward-looking mindset is reflected in a more optimistic outlook for 2026, with projected growth rebounding to 13 per cent.”
Factors Impacting the Market
The international political and economic situation, particularly the crisis in the automotive industry, and the policies of the Trump Administration are cited as the decline as well as concerns about the political leadership in Germany.
In the survey, 51 percent of respondents plan to reduce investment in production over the next six months, a significant change from 37 percent from the previous survey in September 2024. In terms of employment, 89 percent of members plan to hold current staffing levels, and 10 percent plan to increase their workforce.
A bright spot pointed to by industry analysis is that 60 percent 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 prioritize efficiency and long-term stability while managing potential risks in the current economic environment, according to OE-A officials.
Industry Growth Expected
The economic and politics uncertainty notwithstanding, 77 percent of responding OE-A members expect the printed electronics industry to grow in 2025, up 19 percentage points from the last survey.
Despite the survey results show about the economic concerns, Schumacher noted growth continues as the 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,” he said. “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.”