Micro LED display market to reach 34.6 million units by 2031 reports Omdia
Rhea-AI Summary
Omdia forecasts that micro LED display shipments will reach 34.6 million units by 2031, representing only 0.9% of the total display market. Following Apple's postponement of its micro LED watch display project in February 2024, some brands have slowed their component development, leading Omdia to revise its market projections.
The market is expected to reach 1.7 million units by 2027, primarily driven by LEDoS technology in XR devices, particularly smart-glasses designed for outdoor use. By 2031, XR devices are projected to represent 24.4% of the micro LED display market.
In 2024, manufacturers showcased new micro LED prototypes targeting automotive, public displays, and virtual studios. Display suppliers are focusing on market segments where OLED or LCD technologies face limitations in meeting specific size and performance requirements.
Positive
- Projected significant market growth to 34.6M units by 2031
- Expected 1.7M unit shipments by 2027
- Strong potential in XR devices segment (24.4% market share by 2031)
- Successful development of small form factor (0.15-inch) displays for smart-glasses
Negative
- market penetration (only 0.9% of total display market by 2031)
- Development slowdown following Apple's project postponement
- Low cost-competitiveness compared to existing technologies
- Market forecast significantly revised downward
Insights
The projected 34.6 million units by 2031 represents a significant market opportunity, though the
The 0.15-inch diagonal achievements in LEDoS technology mark a important technical milestone, particularly for the XR segment where form factor and outdoor visibility are critical differentiators. The shift toward niche applications in automotive and public displays indicates a pragmatic market approach, focusing on segments where premium pricing can be justified by specific performance requirements that traditional LCD and OLED cannot meet effectively.
This market evolution presents both opportunities and risks for investors in the display technology sector. The reduced growth trajectory following Apple's postponement demonstrates the market's dependence on major OEM adoption. However, the diversification into multiple niche segments reduces single-player risk exposure. The 1.7 million unit forecast by 2027 suggests a measured but promising growth path, particularly valuable for companies positioned in the XR and automotive supply chains.
The focus on specialized applications where traditional displays underperform indicates potential for higher margins, despite lower volumes. Investors should watch for companies developing critical manufacturing technologies and components, as these could become acquisition targets or dominant suppliers in this expanding ecosystem. The emphasis on solving specific technical challenges in niche markets suggests a more sustainable growth path than pursuing immediate mass-market adoption.
Following reports in February 2024 that Apple postponed its micro LED display project for its watch, some set brands and related suppliers have slowed their development of associated components and equipment. As a result, Omdia has significantly revised its market forecast compared to projections made earlier in 2024.
Despite some delays, many industry players continue to aggressively develop micro LED display technology. Omdia forecasts that shipments in the micro LED display market will reach 1.7 million by 2027, driven primarily by light-emitting diode on-silicon backplane (LEDoS) in ultra small sized display device such as extended reality (XR) devices, particularly smart-glasses designed for outdoor. By 2031, XR devices are expected to account for
"Smart-glasses require light-weight designs, low-power consumption and high readability under sunlight," said Jerry Kang, Senior Research Manager at Omdia. "A few LEDoS suppliers have already achieved diagonal sizes as small as 0.15-inch, making them more suitable for lightweight on smart-glasses compared to other display technologies."
In 2024, numerous display manufacturers unveiled new micro LED display prototypes, that mainly targeted automotive, public displays, and virtual studios. This trend suggests that suppliers are anticipating greater adoption of micro LED displays in niche applications.
"Due to the low -cost competitiveness, many display suppliers are focusing on penetrating product segments where OLED or LCD struggle to meet customer demands for specific display sizes and performance," said Kang. "Simultaneously, several component and equipment suppliers are proactively introducing advanced technologies to enhance the manufacturing of micro LED displays."
Omdia's 'Micro LED Display Market Tracker – 4Q 2024' provides valuable insights into technology trends and market developments in the micro LED display industry. The report covers market growth forecasts, cost analyses, and technical outlooks across the supply chain, panel manufacturers, and set brands.
ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Contact
Fasiha Khan: fasiha.khan@omdia.com
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SOURCE Omdia
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