DSCC says that the AR and VR markets are set for quick growth, and display sales for AR and VR devices will grow at a CAGR of 52% between 2020 and 2026, to reach $4.2 billion in sales (up from $347 million in 2020). This forecast does not include military applications.
DSCC says that new technologies, specifically designed components and strong push by consumer electronic giants like Sony and Apple will drive this fast growth in VR and AR adoption. As you can see in the chart above actual see-through AR will remain a relatively small market even in 2026. The main problem with AR will remain display brightness, and DSCC see microLED technologies providing a breakthrough in this market.
DSCC also predicts that SiOLED will capture the largest share of shipments after 2025, while the share of AMOLED displays declines. Although AMOLED has become the dominant technology for high-end smartphones, it does not offer a pixel density high enough to completely suppress the screen door effect when using more compact optics.
The market today, which is mostly VR displays, is dominated by LCD and AMOLED display. OLED microdisplays (OLED on Silicon technologies) will get more and more popular and by 2025 it will dominate the market. DSCC estimates that OLED microdisplay shipments were below 1 million in 2020, and will grow to over 19 million units by 2025. MicroLED displays shipments will remain low, around 5%, in DSCC's forecast period.