Microdisplays are small electronic display devices that project pictures in a variety of applications such as projectors, head-mounted displays (HMDs), and near-to-eye displays (NTEs). High-quality pictures are often produced using OLED (organic light-emitting diodes), LCD, LCOS, or DLP technology. OLED are used to generate visuals with great contrast, low power consumption, and rapid response times. Some examples of this technology being employed are NTE displays, virtual reality headsets, and camera viewfinders. Besides, LCD microdisplays employ liquid crystal displays to generate high-resolution, color-accurate pictures. They are used in a variety of applications, including projectors, head-up displays, and head-mounted displays (HMDs). Hence, microdisplays offer user-configurable technology, high resolution, and high pixel density, and they are extensively used in smart watches, smart bands, and smart glasses to enable high contrast ratio and quality pictures. Owing to such use cases, the demand for the microdisplay market is increasing and is expected to grow at a CAGR of 30.0% during the forecast period (2020-2026).
Key Drivers of the Microdisplay Market
Increasing Trend of XR Headsets
Microdisplays are frequently used as a fundamental component in XR (Extended Reality) headsets, which include virtual reality (VR), mixed reality (MR), and augmented reality (AR), headsets, to provide high-quality, immersive visual experiences. Microdisplays are used to create the appearance of being in a virtual or augmented world by displaying visuals near to the user's eyes. The usage of consumer devices, particularly VR headsets, is growing. Youngsters use VR headsets for a better gaming experience, which are increasingly compatible with smartphones and other devices. The market is expected to increase favorably as the popularity of VR gaming headsets grows and customer preferences move toward smaller, more portable electronic gadgets. Additionally, besides launching new smartphones, manufacturers such as Samsung and HTC are also adding VR or XR headsets to their portfolio. For instance, in its 2023 Galaxy Unpacked event in February, Samsung announced a collaboration with Qualcomm and Google. Through this partnership, the companies are aiming to create a next generation XR headset.
Technological Advancements
Numerous technological advances, such as the introduction of ultra-high-definition (UHD/HD) OLED microdisplays with good optical performance and a high contrast ratio, are propelling market growth. For instance, in May 2022, eMagin exhibited a 4K OLED microdisplay for extremely compact VR headsets at Display Week 2022. eMagin's new microdisplay measures 2.1 inches, which is about the same size as the current batch of small conventional panels designed for headsets with pancake lenses. Since it shares the same density as eMagin's prior products but is also significantly larger, the new microdisplay's resolution of 3600×4000 might be used in VR headsets without reducing field of view. The refresh rate is set at 120 Hz. Such advancements in the microdisplay technology, increases its applications and end users, resulting in high market demand.
Growing Adoption of Wearable Devices
Microdisplays are used in wearable devices such as smartwatches and fitness trackers to display information such as time, messages, and fitness statistics. As the demand for such products increasing, companies are focusing on creating microdisplays that are more useful and meet the demand. For instance, in January 2023, Samsung started its micro-LED display development project for smart watches. With the goal of completing development this year, it is in the limelight as the tiny LED replaces the organic light emitting diode (OLED) used in the Apple Watch and Samsung Watch.
Expansions and Innovations by Major Market Players
The microdisplay market has significant contributors such as eMagin Corp., Universal Display Corp., AU Optronics Corp., KopIn Corp. Inc., LG Display Co. Ltd., Microvision Inc., Sony Corp., Micron Technology Inc., Himax Technology Inc., and Syndiant Inc., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In January 2023, Lakeside Lightning Semiconductor (LLS), an OLED microdisplay manufacturer based in Jiangsu, China, announced its 12" OLED manufacturing plan to commercialize ultra-high-definition (UHD) and high-brightness silicon-based OLED microdisplays, including the world-leading 1.31-inch 2.6K x 2.6K display, in close collaboration with the US-based Lightning Silicon Technology, Inc., a newly announced partial OLED spin out of Kopin Corp.
• In October 2022, Samsung Display launched an OLED microdisplay initiative in order to supply microdisplays to Apple and other AR developers. Samsung is currently in the early phases of development and hopes to commence mass production of screens in 2024.
• In October 2022, MICLEDI Microdisplays, a leading producer of microLED displays for AR glasses, and Kura Technologies, a world leader in AR headset innovation, announced a partnership to manufacture AR glasses. Kura created the new glasses, which use MICLEDI's unique 300mm microLED displays to deliver the performance needed for Kura's next generation of AR glasses. These next-generation glasses boast breakthrough performance capabilities since they are built on Kura's patented architecture from the chip level up.
• In June 2022, BCDTEK, an OLED microdisplay developer, announced a construction of a 12-inch OLED microdisplay production facility in Huainan, China. The new fab will have a monthly production capacity of 20,000 substrates. This new fab's entire investment will be 6.5 billion yuan (approximately $970 million). China Micro Semiconductor and Shanghai Wusheng Electronics have invested in the firm.