Between 2023 and 2029, Yole expects the AR microdisplay market to grow at a faster pace (67% CAGR ) than VR (15%) with AR seen as the ultimate consumer market and VR serving as a pathway for credibility and app development.
Meta, Apple, Huawei, Samsung and Sony are all into AR, VR, and MR (Mixed Reality) and despite y-o-y market falls of 8% and 4% in 2022 and 2023 respectively, there is potential for a resurgence in the market, thinks Yole.
“This optimism stems from the emergence of advanced VR headsets with VST features such as Meta’s Quest 3 and Apple’s Vision Pro, which could facilitate the utilisation of MR applications,” says Yole’s Raphaël Mermet-Lyaudoz, “these devices offer valuable insights into the future of MR and empower developers to push the boundaries of innovation.”
AR and VR products will concentrate on enriching user experiences and broadening the scope of applications, with artificial intelligence playing a central role.
There’s also a promising outlook for AR glasses, which might be rebranded as AI glasses, indicating potential for widespread adoption.
“In the VR realm, performance benchmarks determine the choice of technology, with LCD serving the lower to mid-end segments, while OLED-on-Si dominates the high-end segment, experiencing rapid growth,” says Yole’s Zine Bouhamni..
OLED-on-Si targets specialised markets with limited growth potential, while MEMS technologies such as DLP and LBS encounter challenges in consumer markets but show promise in specific applications.
LCOS provides a balanced compromise and is anticipated to be integrated into the first-generation of products of the tech giants.
Meanwhile, microLED, well-suited for the consumer market, faces obstacles in adoption but foresees substantial growth due to continuous technological advancements and demand from OEMs.