AR and VR Display Market Size, Share & Analysis

Updated on : Sep 12, 2024

AR and VR Display Market Size, Share and Growth

[244 Pages Report] AR and VR display market size is valued at USD 1.8 billion in 2023 and is anticipated to USD 8.2 billion by 2028; growing at a CAGR of 35.6% from 2023 to 2028.

Growing popularity of Metaverse, increasing demand for OLED displays in AR and VR devices, growing adoption of AR and VR HMDs in different industries, growing adoption of AR and VR devices in various applications, and adoption of AR and VR devices in gaming industry are key driving factors for the AR and VR display industry.

AR and VR Display Market Forecast to 2028

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AR and VR Display Market Trends & Dynamics

Driver: Increasing demand for OLED displays in AR and VR devices

OLED is an emerging display technology and has become the mainstream display technology in many markets. OLED displays do not require a backlight; thus, they are thinner and more efficient than LCD displays. OLED displays offer high picture quality, bright colors, infinite contrast, fast response rate, and wide viewing angles, making them ideal for AR and VR applications. OLED microdisplays are gaining momentum due to advanced features such as higher contrast, faster response time, lighter weight, compact size, negligible image smearing, and a wider operating temperature range than LCDs. They have outperformed conventional LCD and LCoS microdisplay technologies as they are widely used in EVFs and HMDs. In the consumer sector, OLED microdisplays are used in video and VR glasses and EVFs to facilitate search, navigation, and daily personal activities, while the defense sector targets AR helmets for pilots to resolve communication issues during the battle.

Restraint: Development of widescreen alternatives

Screenless displays are interactive projection technology developed to solve problems related to miniature electronic devices. Devices such as HMDs, HUDs, and AR and VR projectors are small in size; thus, the lack of space on screen-based displays provides an opportunity for the development of screenless displays. The growing advancements in virtual retinal display and holographic display are an imminent threat to AR and VR traditional displays. Projection technology has been evolving for a long time, and its usage has increased in the last decade. Full domes, planetariums, and many other applications utilize projection technology. The increasing adoption of interactive projectors in different verticals and the low cost of interactive projectors, compared with AR and VR devices, are among the factors propelling the growth of the projectors, which hinders the growth of the AR and VR market.

Opportunity: Surging adoption of AR technology for enterprise applications

The opportunities in enterprise applications are huge. Huge investments in AR and VR devices from enterprises for smart manufacturing will be a major driver for the growth of the market. Companies having factories at varied locations can use AR and employ a small number of engineers to manage large setups. Remote collaboration using AR technology to manage machines and other setups remotely would help manage enterprises effectively. Other important applications of AR in the enterprise vertical are with regard to the instructional use for technicians and other workers in enterprises. The use of head-up displays and smart helmets to understand blueprints and instructions to provide real-time data will help workers function efficiently.

Challenge: Developing user-friendly AR/VR systems

AR/VR technology suppliers and developers face the challenge of developing user-friendly AR/VR devices and tracking systems. A user-friendly virtual environment allows a user to easily navigate and interact with objects in the virtual environment. AR/VR systems are a combination of hardware and software components. AR/VR devices track a user’s movements through different sensors and array them on the virtual display. The development of AR/VR software and virtual content is a challenging task for developers as the virtual content displayed must satisfy the user’s needs.

OLED technology to hold a major share of AR and VR display market during the forecast period

OLED displays can be used for various applications, including consumer electronics, gaming, automotive, medical devices, lighting, and transportation. OLED technology is gaining popularity as OLED displays have a simple design, leading to many advantages such as rich color, wide viewing angle, low power consumption, fast response, and true black color. Moreover, the cost of OLED displays is expected to reduce in the coming years; thus, OLED technology is likely to be rapidly adopted in AR and VR devices and gain a major market share during the forecast period.

HMD devises to hold a major share of the AR and VR display market during the forecast period

The AR/VR market is expected to be led by HMDs. Head-mounted devices from companies such as Sony, Oculus, HTC, Samsung, Google, TLC Alcatel, and Osterhout Design Group have already been in use and have received an overwhelming response from users. HMDs are majorly used for gaming and entertainment applications. Gesture-tracking devices have been an integral part of VR HMDs mainly because these are used for consumer applications. The use of gesture-tracking devices provides an enhanced experience of the virtual world to gamers. The increasing number of manufacturers and the growing adoption of HMDs are among the major factors for the high estimated growth of HMDs.

Aerospace & Defense applications to grow at a higher CAGR in the AR and VR display market during the forecast period

The growing adoption of HMDs and HUDs in the aerospace & defense sector would drive the growth of the AR display market. In aerospace & defense applications, AR HUDs are used to display critical navigational, flight, targeting, and mission-related information on the windshield in front of the pilot. Owing to these benefits, new-generation aircraft are equipped with advanced AR HMDs and AR HUDs. Moreover, AR HMDs are intended to provide infantry soldiers with situational awareness, friend-or-foe identification, and night vision, as well as enhanced ability to remotely coordinate small units.

Asia Pacific region to witness the highest growth during the forecast period

Asia Pacific is expected to hold the largest share of the VR display market by 2028. It is expected to grow at the highest CAGR during the forecast period. The growth of the market in Asia Pacific can be attributed to the presence of major AR/VR display manufacturers such as Samsung, Sony, and Epson. With growing consumer demand for VR gear, mainly for gaming and industrial applications, the market growth is expected to propel further. Moreover, the market is expected to grow at a faster pace in the next few years, on account of surging consumer demand for AR and VR devices, mainly for gaming and industrial applications.

AR and VR Display Market by Region

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Key Market Players - AR and VR Display Market

The AR and VR display companies such as Samsung Electronics (South Korea), Sony (Japan), LG Display (South Korea), eMagin Corporation (US), Kopin Corporation (US), AU Optronics (Taiwan), Japan Display (Japan), Barco (Belgium), BOE Technology (China), and Syndiant (US).

Scope of the AR and VR Display Market Report

AR and VR Display Market Highlights

This report categorizes the AR and VR display market based on technology, display technology, device type, application, and region available at the regional and country level.

Recent Developments

• In March 2022, Samsung announced the development of an AR device to utilize novel hologram screen technology, which will run on Android as its operating system.
• In February 2022, Sony announced a collaboration with Niantic to develop and expand its AR hardware portfolio. The collaboration will mainly focus on the development of AR for headphones.
• In January 2022, Kopin Corporation partnered with RealWear by supplying the Golden Pearl display module for RealWear's recently launched RealWear Navigator 500 wearable device. The updated Golden Pearl features a 0.32", 24-bit full-color, high-brightness LCD microdisplay for easy outdoor/sunlight use and comfortable long-term viewing.
• In December 2021, eMagin Corporation showcased a direct patterning (dpd) technique on a widescreen ultra-extended graphics array (WUXGA) (1920x1200 pixels) OLED Microdisplay for monocular and binocular AR headsets at the 2021 Interservice/Industry Training, Simulation and Education Conference (I/ITSEC). The company aims to commercialize WUXGA dPd OLED Microdisplay by 2023. Through this conference, the company aimed to enhance its product portfolio along with its customer base.
• In December 2021, Sony enhanced and developed a PSVR headset to offer a smoother and better user virtual and visual experience with an 8 K VR headset.

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