Will the Mixed Reality Display Market Surge by 6% Globally in 2025?
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Synopsis
Discover the intriguing future of the mixed reality display market as it gears up for a significant growth spurt! With augmented reality glasses projected to soar by 42%, the landscape of XR technology is evolving. Could this be the breakthrough we've been waiting for?
Key Takeaways
- The mixed reality display market is set to grow 6% in 2025.
- Augmented reality glasses are expected to see a 42% growth.
- LCD technology will dominate VR displays.
- US tariffs may impact XR device demand.
- New technologies like MicroLED are emerging in AR.
New Delhi, May 3 (NationPress) The worldwide shipments of mixed reality (XR) displays are projected to rise by 6 percent annually in 2025, with augmented reality (AR) glasses experiencing a remarkable 42 percent growth, as reported by a recent study.
The latest 'XR Display Shipment and Forecast Report' from Counterpoint Research indicates that while AR remains a somewhat niche market, it will expand at the fastest rate, contrasting with the 2.5 percent growth expected for virtual reality (VR) this year.
This growth will be fueled by the introduction of new AR smart glasses that utilize displays for AI-driven applications rather than media consumption.
“In the previous year, panel shipments saw a notable decline as XR device manufacturers aimed to reduce inventory and adjust their business strategies. The release of the Meta Quest 3S, which features a single LCD panel instead of two, also contributed to the reduced panel shipments,” the report stated.
In this scenario, the anticipated growth in 2025 will only signify a partial recovery, with panel shipments remaining significantly lower than the levels observed in 2023.
The report forecasts that LCD technology will continue to dominate the VR market, holding an 87 percent share of shipments in 2025.
While LCD is prevalent in entry-level headsets, it is also found in premium devices with advanced capabilities such as quantum dots and MiniLED.
For AR, the proportion of OLED-on-Silicon is anticipated to decline to 75 percent, paving the way for a greater share of MicroLED and LCoS displays.
Although Meta and Google have recently showcased fully operational MicroLED smart glasses, they have yet to announce any plans for commercialization.
The recovery is expected to follow a similar trajectory in 2026, with display shipments projected to grow by 38 percent for AR and 2.1 percent for VR.
“However, significant uncertainty remains regarding the US tariffs imposed on Chinese products and their potential impact on the demand for XR devices. Without a swift resolution to the trade conflict, the forecast may need to be revised downwards in the next quarterly update,” the report highlighted.
Point of View
I observe a promising trajectory for the mixed reality display market. The anticipated growth in AR technology signifies not only advancements in consumer electronics but also a shift in how we interact with digital content. However, external factors such as trade policies may pose challenges. It's essential to monitor these developments for a comprehensive understanding of the market's future.
NationPress
21/05/2025
Frequently Asked Questions
What is the projected growth rate for the mixed reality display market in 2025?
The global mixed reality display market is expected to grow by 6 percent annually in 2025.
How much will augmented reality glasses grow by 2025?
Shipments for augmented reality glasses are projected to increase by 42 percent in 2025.
What technology will dominate in VR displays?
LCD technology is expected to maintain dominance in VR displays with an 87 percent share of shipments in 2025.
What challenges could affect the XR display market?
Uncertainties surrounding US tariffs on Chinese products could impact demand for XR devices.
What new technologies are emerging in AR?
The report indicates a shift towards MicroLED and LCoS displays in the AR segment, while OLED-on-Silicon share is expected to decrease.
