Yole: Hope for AR/VR/MR Displays

Between 2023 and 2029, the AR microdisplay market is projected to experience rapid growth at a rate of 67% CAGR, outpacing the VR market, which is expected to grow at a slower pace of 15%. This trend highlights the increasing significance of AR technology in the consumer market, while VR continues to serve as a platform for credibility and app development.

Major players in the tech industry, including Meta, Apple, Huawei, Samsung, and Sony, have all shown a keen interest in AR, VR, and Mixed Reality (MR) technologies. Despite experiencing year-on-year market declines of 8% and 4% in 2022 and 2023, respectively, industry experts believe that there is potential for a resurgence in the market in the coming years.

According to Raphaël Mermet-Lyaudoz from Yole, the optimism surrounding the AR and VR market is fueled by the emergence of advanced VR headsets equipped with Virtual Spatial Technology (VST) features. Devices like Meta's Quest 3 and Apple's Vision Pro are paving the way for the utilization of MR applications, providing valuable insights into the future of mixed reality and empowering developers to drive innovation.

The focus of AR and VR product development is shifting towards enhancing user experiences and expanding the range of applications, with artificial intelligence playing a pivotal role in shaping the future of these technologies. Additionally, there is growing anticipation for the adoption of AR glasses, which may undergo a rebranding as AI glasses, signaling a potential surge in their widespread use.

When it comes to the technological landscape of VR, the choice of display technology is crucial in determining performance benchmarks. LCD technology caters to the lower to mid-end market segments, while OLED-on-Silicon (Si) dominates the high-end segment, experiencing rapid growth. Yole's Zine Bouhamni notes that OLED-on-Si targets specialized markets with limited growth potential, while MEMS technologies like Digital Light Processing (DLP) and Laser Beam Scanning (LBS) face challenges in consumer markets but show promise in specific applications.