Global Expansion of Mixed Reality Displays projected at 6% in 2025: Industry Analysis
In New Delhi's tech scene, the global mixed reality (XR) market is poised for a massive boom, predicting a 6% annual increase by 2025. This growth spurt is particularly noticeable in the AR glass sector, expected to skyrocket by an astounding 42%. These revelations are courtesy of Counterpoint Research's latest XR Display Shipment and Forecast Report.
Even though AR remains a niche segment, it's projected to grow at a swift pace - far surpassing the meager 2.5% growth for VR this year. The driving force behind this growth? Innovative AR smart glasses, designed to serve artificial intelligence applications over media consumption.
Last year bore witness to a dramatic dropped in panel shipments as XR device makers reevaluated their strategies and sold off excess inventory. The release of the Meta Quest 3S, featuring a single LCD panel instead of two, further impacted panel shipments.
Despite the expected growth in 2025, the rebound will only soar partially, with panel shipments falling well short of 2023 levels. Intriguingly, LCD is likely to retain its dominance in VR, capturing a whopping 87% of shipments in 2025.
As for AR, OLED-on-Silicon is expected to relinquish 25% of its market share, paving the way for a greater presence of MicroLED and LCoS displays. Although Meta and Google have showcased functioning MicroLED smart glasses, no word on commercialization has been announced as yet.
By and large, 2026 may bring more of the same, with a 38% AR growth and a slight 2.1% VR expansion. Yet, uncertainty looms over the forecast due to ongoing U.S. tariffs on Chinese products and the potential impact on XR device demand if the trade war doesn't de-escalate eventually.
- The New Delhi tech scene foresees a substantial growing trend for technology related to Artificial Intelligence (AI) and XR displays, with the AR segment expected to exceed even the modest growth of VR in 2021.
- As revealed by Counterpoint Research's XR Display Shipment and Forecast Report, the AR glass sector is set to surge by an incredible 42% by 2025, while the overall XR market anticipates a 6% annual expansion.
- Despite the expected growth in 2025, the rebound in panel shipments for XR devices may not fully recover, remaining below the levels achieved in 2023, due to ongoing U.S. tariffs on Chinese products and the potential impact on XR device demand.
- One of the major developments in the AR market is the shift in display technology, with OLED-on-Silicon losing 25% of its market share to MicroLED and LCoS displays, potentially paving the way for commercialization of MicroLED smart glasses by companies like Meta and Google.
