The near-eye display market size is expected to advance at a CAGR of 24.40% during 2022–2030, to reach USD 9,799 million by 2030. This can be because head-mounted displays (HMDs) are increasingly used in various applications, due to their advantages including lightweight, small size, low power consumption, portability, and transparency. Moreover, these wearable displays project a virtual image into the vision of one or both eyes, and the created image is much bigger than a very small display panel. Also, these displays let users design portable, small, and intimate viewing experiences.
In the rapidly developing disciplines of wearable computing, AR, and VR, near-eye displays (NEDs) are gaining popularity. They can develop innovative experiences that could fundamentally alter applications in the consumer, medical, automotive, entertainment, aerospace & defense, and a number of other industries. Among all the industries, gaming and entertainment is the largest shareholder. As of 2023, there are more than 65 million VR users and around 110 million AR users in the U.S., and millennials account for more than 20% of VR/AR device users. Thus, the surging trend of VR gaming is expected to boost the near-eye display market growth.
Moreover, the increasing demand for NED technology is attributed to the declining price of micro-displays and the rising need for HMDs in a range of applications. The development of small, wearable electronics coupled with the surging number of mobile-based AR applications is driving the demand for HMDs. Also, prominent manufacturers started promoting light displays as consumer goods, which fueled the development of display technologies used in eye-worn displays.
In 2022, North America accounted for a significant market share and it is expected to witness the same trend in the coming years. This is due to the high investment in this field; the surging application of new technologies, such as AMOLED, OLEDoS, and LCoS, by major businesses in their display products; and the increasing use of smart electronics, smartphones, and other connected devices in the region.
Other factors propelling the regional market include the greater acceptance of AR and VR technologies because of the COVID-19 pandemic, the availability of low-cost HMDs, technological advancements, and expanding digitalization. Also, most manufacturers are concentrating their efforts on creating micro-displays for medical purposes in order to increase profits following the COVID-19 outbreak.
Moreover, the innovation of wearable technologies and their implementation in various applications consequently resulted in a massive increase in funding from global giants. Large investors in the HMD industry include Facebook, Intel, Qualcomm, Alphabet, Comcast Ventures, and Samsung. Thus, these factors are expected to boost the advancements and create lucrative opportunities for industry players in the future.
China is undoubtedly in a very strong position to take advantage of the increasing demand for VR and AR devices. Its extensive commitment to accelerating the development and adoption of this technology throughout both consumer and commercial sectors has made this feasible. This is also driven by China's unmatched 5G deployment and a fervent ambition to "scale up" VR/AR as a crucial digital economy industry to rapidly construct a "Digital China". For instance, the country accounted for more than 50% of worldwide VR/AR investment in 2021 and solidified its place as a dominant force in this market.
The major market players are Sony Group Corporation, Himax Technologies Inc., Kopin Corporation, Jade Bird Display (JBD), TriLite Technologies GmbH, MICROOLED Technologies, BOE Technology Group Co. Ltd., Syndiant, eMagin Corporation, Texas Instruments Incorporated, and Samsung Electronics Co. Ltd.