The rising number of near-to-the-eye applications and increasing preference for advanced driver assistance systems (ADAS) that are integrated with heads-up displays (HUDs) are resulting in the rising sales of microdisplays. As a result, the microdisplay market, which valued $1.0 billion in 2019, is projected to grow to $4.0 billion by 2030, at a 13.4% CAGR during 2020–2030 (forecast period). As the name suggests, microdisplays are displays of rather small sizes that offer a high pixel density and resolution.
The strongest driver for the microdisplay market is the increasing usage of ADAS integrated with HUDs. Due to the rising number of road accidents, which kill 1.3 million people each year, as per the World Health Organization (WHO), countries are mandating the installation of ADASs in vehicles, so that the chances of human error can be reduced. To make ADAS more effective, it is being integrated with HUDs, so the driver sees all the driving-related data in their line of sight, without having to tilt their head.
Organic light-emitting diode (OLED) microdisplays are becoming increasingly common in consumer electronics because they are compact and offer a high resolution, high pixel density, and better picture quality. As a result of these advantages, the usage of OLED microdisplays is surging in VR headsets, the adoption of which is itself booming. With the rising demand for an immersive experience while shopping, learning, and gaming, AR/VR apps and programs are gaining widespread adoption, which is, in turn, driving the sales of the associated HMDs.
In 2019, the microdisplay market was dominated by Asia-Pacific (APAC) due to the presence of numerous industry players, which has led to a reduction in the prices of the end products for regional consumers. Additionally, China, Japan, and India are three of the largest producers of consumer electronics and automobiles in the world, which is why the demand for microdisplays in both these industries is rapidly booming here. Moreover, with the increasing disposable income of people, sales of connected vehicles and those with ADASs and of AR/VR devices are burgeoning.
Therefore, as people around the world continue to prosper, the resulting increase in the sales of consumer electronics and connected vehicles will keep giving impetus to the market.
