AR and VR Display Market by Device Type (AR HMDs, VR HMDs, AR HUDs, VR Projectors), Technology, Display Technology (LCD, OLED, Micro-LED), Application (Consumer, Commercial, Enterprise, Healthcare, Aerospace & Defense) & Region - Global Forecast to 2028
[244 Pages Report] AR and VR display market size is valued at USD 1.8 billion in 2023 and is anticipated to USD 8.2 billion by 2028; growing at a CAGR of 35.6% from 2023 to 2028.
Growing popularity of Metaverse, increasing demand for OLED displays in AR and VR devices, growing adoption of AR and VR HMDs in different industries, growing adoption of AR and VR devices in various applications, and adoption of AR and VR devices in gaming industry are key driving factors for the AR and VR display industry.
AR and VR Display Market Forecast to 2028
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AR and VR Display Market Dynamics
Driver: Increasing demand for OLED displays in AR and VR devices
OLED is an emerging display technology and has become the mainstream display technology in many markets. OLED displays do not require a backlight; thus, they are thinner and more efficient than LCD displays. OLED displays offer high picture quality, bright colors, infinite contrast, fast response rate, and wide viewing angles, making them ideal for AR and VR applications. OLED microdisplays are gaining momentum due to advanced features such as higher contrast, faster response time, lighter weight, compact size, negligible image smearing, and a wider operating temperature range than LCDs. They have outperformed conventional LCD and LCoS microdisplay technologies as they are widely used in EVFs and HMDs. In the consumer sector, OLED microdisplays are used in video and VR glasses and EVFs to facilitate search, navigation, and daily personal activities, while the defense sector targets AR helmets for pilots to resolve communication issues during the battle.
Restraint: Development of widescreen alternatives
Screenless displays are interactive projection technology developed to solve problems related to miniature electronic devices. Devices such as HMDs, HUDs, and AR and VR projectors are small in size; thus, the lack of space on screen-based displays provides an opportunity for the development of screenless displays. The growing advancements in virtual retinal display and holographic display are an imminent threat to AR and VR traditional displays. Projection technology has been evolving for a long time, and its usage has increased in the last decade. Full domes, planetariums, and many other applications utilize projection technology. The increasing adoption of interactive projectors in different verticals and the low cost of interactive projectors, compared with AR and VR devices, are among the factors propelling the growth of the projectors, which hinders the growth of the AR and VR market.
Opportunity: Surging adoption of AR technology for enterprise applications
The opportunities in enterprise applications are huge. Huge investments in AR and VR devices from enterprises for smart manufacturing will be a major driver for the growth of the market. Companies having factories at varied locations can use AR and employ a small number of engineers to manage large setups. Remote collaboration using AR technology to manage machines and other setups remotely would help manage enterprises effectively. Other important applications of AR in the enterprise vertical are with regard to the instructional use for technicians and other workers in enterprises. The use of head-up displays and smart helmets to understand blueprints and instructions to provide real-time data will help workers function efficiently.
Challenge: Developing user-friendly AR/VR systems
AR/VR technology suppliers and developers face the challenge of developing user-friendly AR/VR devices and tracking systems. A user-friendly virtual environment allows a user to easily navigate and interact with objects in the virtual environment. AR/VR systems are a combination of hardware and software components. AR/VR devices track a user’s movements through different sensors and array them on the virtual display. The development of AR/VR software and virtual content is a challenging task for developers as the virtual content displayed must satisfy the user’s needs.
OLED technology to hold a major share of AR and VR display market during the forecast period
OLED displays can be used for various applications, including consumer electronics, gaming, automotive, medical devices, lighting, and transportation. OLED technology is gaining popularity as OLED displays have a simple design, leading to many advantages such as rich color, wide viewing angle, low power consumption, fast response, and true black color. Moreover, the cost of OLED displays is expected to reduce in the coming years; thus, OLED technology is likely to be rapidly adopted in AR and VR devices and gain a major market share during the forecast period.
HMD devises to hold a major share of the AR and VR display market during the forecast period
The AR/VR market is expected to be led by HMDs. Head-mounted devices from companies such as Sony, Oculus, HTC, Samsung, Google, TLC Alcatel, and Osterhout Design Group have already been in use and have received an overwhelming response from users. HMDs are majorly used for gaming and entertainment applications. Gesture-tracking devices have been an integral part of VR HMDs mainly because these are used for consumer applications. The use of gesture-tracking devices provides an enhanced experience of the virtual world to gamers. The increasing number of manufacturers and the growing adoption of HMDs are among the major factors for the high estimated growth of HMDs.
Aerospace & Defense applications to grow at a higher CAGR in the AR and VR display market during the forecast period
The growing adoption of HMDs and HUDs in the aerospace & defense sector would drive the growth of the AR display market. In aerospace & defense applications, AR HUDs are used to display critical navigational, flight, targeting, and mission-related information on the windshield in front of the pilot. Owing to these benefits, new-generation aircraft are equipped with advanced AR HMDs and AR HUDs. Moreover, AR HMDs are intended to provide infantry soldiers with situational awareness, friend-or-foe identification, and night vision, as well as enhanced ability to remotely coordinate small units.
Asia Pacific region to witness the highest growth during the forecast period
Asia Pacific is expected to hold the largest share of the VR display market by 2028. It is expected to grow at the highest CAGR during the forecast period. The growth of the market in Asia Pacific can be attributed to the presence of major AR/VR display manufacturers such as Samsung, Sony, and Epson. With growing consumer demand for VR gear, mainly for gaming and industrial applications, the market growth is expected to propel further. Moreover, the market is expected to grow at a faster pace in the next few years, on account of surging consumer demand for AR and VR devices, mainly for gaming and industrial applications.
AR and VR Display Market by Region
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Key Market Players
The AR and VR display companies such as Samsung Electronics (South Korea), Sony (Japan), LG Display (South Korea), eMagin Corporation (US), Kopin Corporation (US), AU Optronics (Taiwan), Japan Display (Japan), Barco (Belgium), BOE Technology (China), and Syndiant (US).
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Report Metric |
Details |
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Market Size Available for Years |
2019-2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Unit |
Value (USD Million/Billion) |
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Segments Covered |
By Technology, By Display Technology, By Device Type, By Application, By Region |
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Geographic Regions Covered |
North America, Europe, Asia Pacific, Rest of World (RoW) |
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Companies Covered |
The major players include Samsung Electronics (South Korea), Sony (Japan), LG Display (South Korea), eMagin Corporation (US), Kopin Corporation (US), AU Optronics (Taiwan), Japan Display (Japan), Barco (Belgium), BOE Technology (China), and Syndiant (US). (Total 25 companies) |
AR and VR Display Market Highlights
This report categorizes the AR and VR display market based on technology, display technology, device type, application, and region available at the regional and country level.
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Segment |
Subsegment |
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By Technology |
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By Display Technology |
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By Device Type: |
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AR Display Application: |
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VR Display Application: |
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By Region |
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Recent Developments
- In March 2022, Samsung announced the development of an AR device to utilize novel hologram screen technology, which will run on Android as its operating system.
- In February 2022, Sony announced a collaboration with Niantic to develop and expand its AR hardware portfolio. The collaboration will mainly focus on the development of AR for headphones.
- In January 2022, Kopin Corporation partnered with RealWear by supplying the Golden Pearl display module for RealWear's recently launched RealWear Navigator 500 wearable device. The updated Golden Pearl features a 0.32", 24-bit full-color, high-brightness LCD microdisplay for easy outdoor/sunlight use and comfortable long-term viewing.
- In December 2021, eMagin Corporation showcased a direct patterning (dpd) technique on a widescreen ultra-extended graphics array (WUXGA) (1920x1200 pixels) OLED Microdisplay for monocular and binocular AR headsets at the 2021 Interservice/Industry Training, Simulation and Education Conference (I/ITSEC). The company aims to commercialize WUXGA dPd OLED Microdisplay by 2023. Through this conference, the company aimed to enhance its product portfolio along with its customer base.
- In December 2021, Sony enhanced and developed a PSVR headset to offer a smoother and better user virtual and visual experience with an 8 K VR headset.
Frequently Asked Questions (FAQ):
What is the current size of the global AR and VR display market?
The AR and VR display market is projected to grow from USD 1.8 billion in 2023 to USD 8.2 billion by 2028; it is expected to grow at a CAGR of 35.6% from 2023 to 2028.
Which devices are expected to dominate the AR and VR display market?
The VR HMDs are expected to dominate the AR and VR display market in terms of market size during the forecast period. The high demand for VR HMDs in gaming and entertainment would drive the market for AR and VR displays in terms of volume.
What are the challenges in the AR and VR display market?
Display latency and limited field of view, complex processes involved in manufacturing AR and VR displays, and developing user-friendly AR/VR systems are some of the challenges faced by the AR and VR display market.
What are the technological trends disrupting the AR and VR display market?
High adoption of AR smart glasses to improve work efficiency, increasing demand for AR for rugged display applications, and growing demand for microdisplays for VR technology have a major impact on the AR and VR display market in terms of technologies.
Which are the major companies in the AR and VR display market?
Samsung Electronics (South Korea), Sony (Japan), LG Display (South Korea), eMagin Corporation (US), Kopin Corporation (US), AU Optronics (Taiwan), Japan Display (Japan), Barco (Belgium), BOE Technology (China), and Syndiant (US) are the players dominating the AR and VR display market.
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The study involved four major activities for estimating the size of the AR and VR display market. Exhaustive secondary research has been carried out to collect information relevant to the market, its peer markets, and its parent market. Primary research has been undertaken to validate key findings, assumptions, and sizing with industry experts across the value chain of the AR and VR display market. Both top-down and bottom-up approaches have been employed to estimate the complete market size. It has been followed by the market breakdown and data triangulation methods to estimate the size of different segments and subsegments of the market.
Secondary Research
The research methodology that has been used to estimate and forecast the size of the AR and VR display market began with the acquisition of data related to the revenues of key vendors in the market through secondary research. The secondary research referred to for this research study involves AR and VR display magazines, and journals. Moreover, the study involved extensive use of secondary sources, directories, and databases, such as Hoovers, Bloomberg Businessweek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the AR and VR display market. Vendor offerings have been taken into consideration to determine the market segmentation. The entire research methodology included the study of annual reports, press releases, and investor presentations of companies; white papers; and certified publications and articles by recognized authors; directories; and databases.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the AR and VR display market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand and supply-side players across key regions, namely, North America, Europe, Asia Pacific, and Middle East, and Africa. Various primary sources from both the supply and demand sides of the market have been interviewed to obtain qualitative and quantitative information. Following is the breakdown of the primary respondents.
Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in our report. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the size of AR and VR display market and its segments. The research methodology used to estimate the market size includes the following:
- Focusing on top-line investments and expenditures made in the ecosystem of AR and VR display market, initially
- Calculating the market size considering revenues generated by major players through the cost of their AR and VR displays
- Conducting multiple on-field discussion sessions with key opinion leaders of major companies providing AR and VR displays
- Segmenting each application of AR and VR display in each region and deriving the global market size based on region
- Estimating the regional split using secondary sources based on various factors such as the number of OEMs in a specific country and a region, the role of leading market players based in this country and region in the development of new and innovative products, and adoption and penetration rates of AR and VR displays for use in various applications in a particular country or region.
Global AR and VR Display Market Size: Bottom-up Approach
- Identifying entities in the AR and VR display market that influence the entire market, along with providers of related devices
- Analyzing major providers of AR and VR display and original equipment manufacturers (OEMs) as well as studying their portfolios and understanding different display technologies used
- Analyzing trends pertaining to the use of different types of AR and VR display in different applications
- Tracking the ongoing and upcoming developments in the AR and VR display market, including investments, R&D activities, product launches, collaborations, and contracts, as well as forecasting the market size based on these developments and other critical parameters
- Holding multiple discussion sessions with key opinion leaders to understand different types of AR and VR display, technologies used in them, and applications wherein they are used, as well as recent trends in the market to analyze the breakup of the scope of work carried out by major companies
- Arriving at the market estimates by analyzing the revenue of companies and then combining these figures to arrive at the market size
- Segmenting the overall market into various other market segments
- Verifying and cross-checking the estimate at every level through discussions with key opinion leaders such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts in MarketsandMarkets
- Studying various paid and unpaid sources of information such as annual reports, press releases, white papers, and databases
Data Triangulation
After arriving at the overall market size-using the market size estimation process explained above-the market has been split into several segments and subsegments. Data triangulation and market breakdown procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for each segment and subsegment of the market. The data has been triangulated by studying various factors and trends from both demand and supply sides of the AR and VR display market.
Report Objectives
- To describe and forecast the size of the augmented reality (AR) and virtual reality (VR) display market, by technology, in terms of value and volume
- To describe and forecast the size of the market, by display technology, application, and device type, in terms of value
- To forecast the size of various segments of the market with respect to four regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To analyze the emerging applications/use cases in the AR and VR display market
- To identify key AR and VR display manufacturers and analyze their production capabilities and new production fab construction plans in the market
- To analyze the ecosystem/supply chain of AR and VR devices consisting of material and component suppliers, driver IC suppliers, manufacturing equipment suppliers, manufacturers, and brand product manufacturers
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze market opportunities for stakeholders and provide details of the competitive landscape
- To analyze competitive developments, such as joint ventures, collaborations, agreements, contracts, partnerships, mergers and acquisitions, and product launches and developments in the market
- To strategically profile key players and comprehensively analyze their market share and core competencies
Available Customizations
Along with the market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to 10)
- Additional country-level analysis of AR and VR display market
- Estimation of the market size of the segments of the AR and VR display market based on different subsegments
Generating Response ...
Growth opportunities and latent adjacency in AR and VR Display Market