Microdisplay Market Size, Share, Trends

Updated on : October 23, 2024

Microdisplay Market Size & Share

[244 Pages Report] The global microdisplay market size is projected to grow from USD 1.3 billion in 2024 to USD 3.0 billion by 2029, growing at a CAGR of 18.2% during the forecast period from 2024 to 2029. The increasing demand of microdisplays in wearable devices and near-to-eye devices, growing deployment of head-mounted displays in automotive application, rising adoption of head-mounted displays (HMDs) in various sectors, and growing demand for advanced microdisplays such as MicroLED and OLEDoS are the major factors propelling the growth of the microdisplay market. MicroLEDs can propel the microdisplay business by providing higher brightness, contrast, and energy efficiency than standard display technologies. Their ability to provide high resolution and endurance makes them suitable for use in AR/VR headsets, wearables, and automotive head-up displays, pushing the limits of performance and user experience.

Impact of AI/Gen AI on microdisplay market

The major use cases of AI/Gen AI in the microdisplay market size include content creation, image processing and quality, user interaction, and personalized recommendations. AI-generated content can enhance the immersive experience and provide highly detailed virtual environments in head-mounted displays by enabling adaptive storytelling and real-time rendering. AI-driven content creation for HMDs enables the construction of immersive and highly detailed virtual environments, which improves applications in gaming, training, and virtual tourism. Image processing and quality enhancement utilize AI algorithms to provide clearer, more colorful graphics, which are critical for compact, high-resolution displays. Furthermore, AI improves user engagement by creating intuitive, responsive interfaces that adapt to user habits and preferences in smartwatches and wearables. Personalized recommendations employ AI to evaluate user data and provide tailored content and suggestions, resulting in increased satisfaction and engagement across various cutting-edge devices.

Attractive opportunities in the microdisplay market

Microdisplay Market Forecast to 2028

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Micodisplay Market Trends & Dynamics:

Driver: Growing demand for micro displays in wearable devices

Wearable devices are IoT-enabled devices used for data transfer. Increased global demand for these devices has led to the development of improved and efficient microdisplays for use in them to increase their consumer traction. For instance, in early 2023, Samsung Display initiated a new project to create microLED wearable displays. The company intended to supply these displays to leading wearable manufacturers like Apple and Samsung Electronics. Concurrently, Samsung Electronics has begun developing a microLED-powered Galaxy Watch device, with an anticipated launch targeted for 2025.

Display manufacturers worldwide are also focusing on developing and launching displays for wearable devices such as AR/VR, owing to their growing demand. For instance, in April 2023, AUO Corporation announced its plan to transform its LCD 5A fab located in Taiwan's Longtan District into a microLED production facility. This initiative aims to commence microLED manufacturing by 2025 or 2026, focusing on applications such as wearable displays, automotive displays, TVs, and signage displays.

Restraint: High capital investment and manufacturing costs

Though microdisplays have better performance and utility than conventional direct-view displays such as LCD or OLEDs, there are still multiple manufacturing challenges that require to be addressed to enable cost-effective and high-volume manufacturing of microdisplays. These displays require high-quality components and expensive equipment that increase the manufacturing costs of microdisplays. Though LCD and LCoS microdisplays are economical, OLED and high-end microdisplays are still expensive. The complexity of manufacturing high-quality microdisplays results in significant production costs. For example, the cost of producing Micro-LED displays, a promising microdisplay technology, is currently 10 times higher than that of traditional LED displays, limiting mass-market adoption.

Opportunity: Advancements in Micro LED technology

Advancements in Micro-LED technology represent a significant opportunity for the microdisplay market share , presenting significant opportunities across diverse industries. Microdisplays utilize advanced silicon backplanes, and microLED microdisplays can be manufactured using a monolithic process. This method allows LEDs to be directly fabricated on the silicon wafer or transferred to it, which is simpler compared to the TFT-glass transfer process. Micro-LEDs, known for their small size and individual light-emitting diodes, offer superior display characteristics such as enhanced brightness, energy efficiency, faster response times, and extended lifespans compared to traditional LCDs and OLEDs. These attributes position Micro-LEDs as ideal solutions for applications requiring high-resolution displays in compact formats, including augmented reality (AR) glasses, virtual reality (VR) headsets, smartwatches, and automotive displays.

Challenge: Reduction in display latency

One of the primary challenges for manufacturers of NTE (Near-To-Eye) devices and applications lies in delivering displays with low latency. Latency-induced errors often result in image lag, which significantly impacts user experience. In gaming, high input lag can make gameplay feel sluggish and unresponsive. Lower input lag levels are crucial for enabling gamers to enjoy seamless control experiences where screen movements respond instantly to commands. This challenge is particularly critical in sectors like healthcare, aerospace, and defense, where delayed responses can have serious consequences. Despite efforts, all microdisplay-equipped devices inherently face latency thresholds influenced by factors such as content frame rate, display refresh rate, and input lag.

Microdisplay Market Ecosystem

Key companies in this market include well-established, financially stable providers of microdisplay products. These companies have been operating in the market for several years and possess a diversified portfolio of microdisplay which caters to a wide range of applications. Prominent companies in this market include Seiko Epson Corporation (Japan), SeeYA Technology (China), Sony Group Corporation (Japan), Kopin Corporation (US), Himax Technologies, Inc. (Taiwan), and HOLOEYE Photonics AG (Germany) among others.

Microdisplay Market Segmentation

By Offering, Software segment likely to exhibit the highest CAGR during the forecast period

Advances in technology and the subsequent use of technologies such as the internet of things (IoT), the growing demand for real-time content management, and the expanding use of smart signage have all contributed significantly to the global rise of the microdisplay software market. The advantages of microdisplay software have resulted in a significant growth in its adoption in recent years. Furthermore, the development and popularity of system-on-chip displays has boosted the demand for microdisplay software. Regular software license purchases and updates are expected to have a significant impact on the growth of the microdisplay software industry.

By Application, commercial application is expected to account for largest share between 2024 and 2029.

Microdisplays displays are commonly used in the retail industry due to their capacity to attract customers and improve the customer experience in businesses. Kiosks, video walls, menu boards, automated teller machines (ATMs), billboards, interactive displays, and system-on-chip displays are all examples of digital signage utilized in retail, healthcare, business, broadcasting, hotel, and government sectors. Microdisplay: displays are used in the healthcare sector to display health-related information and stimulate patient participation via interactive kiosks. Wayfinding screens in hospitals and other business settings can also assist reduce hallway traffic. Furthermore, interactive displays are becoming increasingly popular in the retail industry due to the growing demand for enhanced consumer involvement. Furthermore, interactive displays are useful for information distribution and navigation.

By technology, OLED microdisplays to account for the largest market share during the forecast period

The OLED segment of the microdisplay market size is predicted to grow significantly throughout the forecasted period. The segment's rise can be ascribed to the rapid acceptance of these displays with enhanced capabilities and their application in HMDS. OLED microdisplays are rapidly being employed in AR-HMDs due to its higher power, faster response times, and wider color palette. Several manufacturers of microdisplays, including Kopin Corporation (US), Samsung Electronics (South Korea), and Yunnan OLIGHTEK Opto-Electronic Technology Co. Ltd. (China), have introduced OLED microdisplays for HMDs.

Higher FHD segment is projected to grow at higher CAGR during forecast period 

Higher FHD segment is projected to expand at the highest CAGR during the estimated period. Displays with typical FHD resolution have a horizontal resolution of 1920 pixels and a vertical resolution of 1080 pixels. Fraunhofer-FEP demonstrated a curved OLED microdisplay panel at the 2018 US Society for Information Display (SID). This 1-inch-diameter curved OLED microdisplay has a resolution of 1200 x 1920. The panel was constructed as part of the EU-funded LOMID project.

NTE Devices to register growth at higher CAGR

NTE devices are projected to expand at the highest CAGR between 2024 and 2029. OLED-based microdisplays are increasingly being used in NTE devices because to their higher power efficiency, faster response times, and wider color range. The eMagin Corporation's SVGA+-Rev3-OLED XL- microdisplay is a power-efficient OLED-microdisplay solution for near-eye personal view applications. Because of the presence of major EVF vendors in Japan, Asia-Pacific is expected to continue to have the highest demand for microdisplays for usage in NTE devices during the estimated period.

Microdisplay Market Regional Analysis

Asia Pacific likely to hold the largest share of microdisplay market during forecast period

Asia Pacific is expected to dominate the microdisplay market share from 2024 to 2029. In addition to the fact that Japan is home to several prominent EVF vendors, Asia Pacific is expected to continue to have the highest demand for microdisplays for usage in NTE devices during the forecast period. The vast majority of camera manufacturers are concentrated in Asia Pacific. Canon Inc., Nikon Corporation, and Sony Group Corporation together account for more than 90% of the camera market. As a result, Japan's demand for microdisplays soars, propelling expansion in the microdisplay sector across the region.  Furthermore, Asia Pacific is predicted to account for the majority of the LCD microdisplay market from 2024 to 2029. LCD microdisplays are in high demand in cameras/EVFs and projectors, and the majority of vendors are located in this region.

Microdisplay Market Size by Region

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Top Microdisplay Companies: Key Market Players

• Sony Group Corporation (Japan),
• Seiko Epson Corporation (Japan),
• Kopin Corporation (US),
• Himax Technologies, Inc.,(Taiwan),
• SeeYA Technology (China)  are some of the key players in the microdisplay companies.

Microdisplay Report Scope:

Microdisplay Market Highlights

Recent Developments in Microdisplay Industry : 

• In April 2024, Kopin Corporation increased its customer base by winning the third production order for their Organic Light-Emitting Diode (OLED) microdisplays. These screens will be used in the Indian Army's mounted and handheld thermal imaging vision systems. According to the terms of the most recent production order, which comprises approximately 1,200 units, deliveries will take place over a six-month period.
• In February 2024, -Kopin Corporation received a new Small Business Innovation Research (SBIR) contract from the Naval Air Warfare Center. Under this contract, Kopin will use its over 30-years of experience in US-based microdisplay research to produce superior microdisplays for lens less computational imaging.
• In August 2023, Sony Semiconductor Solutions Corporation (SSS) launched the ECX344A, high-definition 1.3-type OLED microdisplay with 4K resolution that is intended to give more realistic space recreations which are designed specifically for AR/VR applications.
• In January 2023, Seiko Epson and Universal Display entered into an agreement for researching OLEDs. Universal Display will provide Epson with its unique phosphorescent OLED materials and technology for AR/VR (augmented reality/virtual reality) display applications under the terms of the agreement.

Frequently Asked Questions (FAQ’s):

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