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Yole analysts predict explosive growth for AR headset microdisplay market

They predict 110% CAGR through 2025

Experts of the analytical company Yole Développement studied the microdisplay market and prepared a forecast for its development in the coming years. In their opinion, this market will grow steadily in the foreseeable future. More precisely, it is expected to grow at a CAGR of 17% through 2025. If this forecast comes true, the microdisplay market will reach $ 4.2 billion in 2025. For comparison: this year it is estimated at $ 1.9 billion. At the same time, sales of microdisplays for augmented reality (AR) headsets will grow especially fast – on average by 110% per year, and in 2025 they will reach $ 1.8 billion. 

AR headset microdisplay market
AR headset microdisplay market

Yole analysts predict explosive growth for AR headset microdisplay market

The biggest expectations are in the consumer segment, but analysts acknowledge that there is a need to find more compelling AR headset use cases that appeal to consumers. They assume this will eventually happen, but manufacturers should step up their efforts in this direction. New use cases are expected to be identified within the next two years.

In terms of technology, so far the market is dominated by LCOS and DLP microdisplays. While all competing technologies have their pros and cons, expectations for a radical change lie in OLED-on-Si and micro-LED technologies.

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