Microdisplays Market Forecasts from 2023 to 2028

The microdisplay market was valued at US$2.134 billion in 2021 and is expected to grow at a CAGR of 25.12% over the forecast period to reach US$10.245 billion in 2028.

Microdisplays are mini displays that are made of CMOS chips and require magnifying optics for use. The market is poised to witness rapid growth during the next five years. The major factor supplementing the market growth includes the booming adoption of these displays in various devices such as smartphones, smart bands, cameras, and others on account of higher resolutions and high pixel density. Also, high power efficiency is considered to be a major factor supplementing the demand for these displays across various industries.

Rising Smart Band and Smartwatch Demand

The key factors that are driving the microdisplay market growth throughout the forecast period include a substantial increase in the demand for smartwatches and smart bands, especially in the developed economies of the globe on account of high demand for these products due to higher purchasing power. The market's future potential is evident in the extensive range of products offered by numerous market players, both large and small. The increasing total revenues of Qualcomm in the Internet of Things (IoT) sector, with $1, 390 million in 2022 and $1, 828 million in 2023 for the second quarter, can be closely linked to the growth of rising smart bands and smartwatch demand. As Qualcomm is a prominent provider of mobile chipsets, its revenues reflect the strong market demand for IoT-enabled devices such as smart bands and smartwatches. The surge in smart bands and smartwatch demand, fueled by factors like improved functionalities and consumer preferences for wearable technology, serves as a significant growth driver for the microdisplay market.

Expanding Utility in Automotive Sector

The market growth in this industry is majorly attributed to the increasing focus of automotive manufacturers on improving drivers’ convenience and safety. Further, the rising need for head-mounted microdisplays in the automotive industry is very significant. This technology is often used to prototype vehicle designs. This provides engineers with knowledge such as the precise location of various vehicle pieces. Moreover, due to the growing popularity of rear-seat entertainment systems in cabs, OLED technology production has been a top priority for display makers. For instance, as per the Society of Indian Automotive Manufacturers, the total automobile production in India for 2020-21 was 22.655 million units which increased to 25.931 million in 2022-23.

Advancements in AR and VR Technology

With the advancement of AR technology, automakers are now able to offer consumers a wide range of AR HUD models that are tailored to their needs. Some HUD-equipped modern automobile designs also feature microdisplays or picture generation systems. Panels for car exhibitions are frequently small to medium-sized. They are utilized in indicator clusters, dashboard screens, central control units, multimedia systems, GPS units, and security systems in addition to assisting drivers by providing the necessary information. For instance, Karma Automotive and WayRay declared their partnership in December 2021 with plans to equip a fleet of future Karma vehicles with a cutting-edge new type of augmented reality (AR) head-up display (HUD) technology. The production of virtual images at any distance and on many depths and planes is made possible by the WayRay True Augmented Reality (True AR) and Deep Reality Display technology. An RGB laser beam is used to display images onto a holographic optical element (HOE) using a picture-generating unit.

North America is Expected to Grow Significantly

The North American region is expected to hold a significant share of the microdisplays market. According to the Ecorys report on virtual reality and the state of technology in Europe, the US is leading the AR and VR market and it was predicted that around 83 million Americans were using AR in 2020. AR and VR are generally used in the gaming industry in the USA. Games using augmented reality use sensors like cameras, microphones, microdisplays, and global positioning systems to detect the actual world and then overlay game graphics and sounds on top of it. The US gaming industry recorded the highest revenue in 2021 at US$ 53 billion as compared to US$43.6 billion in 2019. Connecticut and Michigan also became new iGaming markets in 2021, which contributed to the industry's record $3.71 billion in revenue.

Key Market Developments

• The introduction of the Xiaomi Watch S1 Pro in June 2023, features advanced attributes such as Bluetooth 5.0, GPS, NFC, Bluetooth calling, a 1.47-inch touch display, water resistance, heart rate and spo2 monitors, pedometer, sleep monitor, calorie count, step count, and 15-day battery life, contributes significantly to the growing demand for smart bands and smartwatches.
• In April 2022, AUO announced new Micro LED and AmLED components for future smart cockpits. It can be utilized as a central information display (CID) or cluster and benefits from a curved design, outstanding resolution, high brightness, and wide color gamut. AUO also uses a non-silicon Tracking Gate line.
• eMagin Corporation received an order worth US$ 4 million for displays in connection with the Enhance Night Vision Goggle-Binocular (ENVG-B) program of the US Army.

Segmentation:

By Technology

• LCD
• DLP
• LCOS
• OLED

By Application

• Near-To-Eye (NTE)
• Projection

By Industry

• Consumer Electronics
• Healthcare
• Automotive
• Aerospace and Defense
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Indonesia
• Others