What Display Daily thinks: Talking about AR and XR and MR and MicroLED is a form of emesis, and automotive makes the most sense for MicroLED. That’s now the given mantra of analysts and their hangers on, me to name one.
But, is this a case of wishful thinking because we all have to keep the industry in MicroLED investment going or is this a really opportunity for meaningful application, despite all the drawbacks to existing MicroLED manufacturing?
Let’s look at it another way: no one has ever asked for Alt Reality devices and there is no ROI. MicroLED is just a specification looking for a place to fit in that market. In automotive, there are distinct advantages that MicroLED holds over all other display technologies including longevity, power consumption, brightness, and application.
Whether the automotive industry has the stomach for the interminable investment in MicroLED that Apple didn’t have remains to be seen. MicroLED is still at Gen 0. It needs be at Gen 3 to be viable for market consumption, even in automotive. The MicroLED industry also lacks clear leadership or market drivers. There isn’t a single clear-cut trailblazing company to light up customers and investors. That’s where the whole Apple cancels MicroLED watch project thing hurt so bad.
To be fair, that’s the fault of everyone who just hoped Apple would validate the technology for the industry and save them having to figure it out. Get your own life, MicroLED, and stop waiting for a sign or someone else to come along and save you. It’s like a Hallmark movie moment for the industry. Automotive may be the redemptive moment for the industry. Or, not. The challenges of MicroLED have not disappeared and I doubt that the automotive industry really wants to be a testbed for any display technology.
So, more questions than answers.
TrendForce Projects 84% CAGR for MicroLED
The MicroLED industry faces significant shifts and challenges following Apple’s decision to cancel its MicroLED watch project in March 2024. The cancellation has resulted in slowdowns in investments, technological development, and widespread adoption of MicroLED technology, according to TrendForce. However, advancements in chip miniaturization and cost reduction efforts continue to drive the industry forward. Major manufacturers such as LG, BOE, and Vistar are investing in large-sized display applications, while AUO persists in developing watch products. TrendForce forecasts that the market value of MicroLED chips will reach $580 million by 2028, with an 84% compound annual growth rate (CAGR) from 2023 to 2028.
MicroLED technology offers distinct advantages over other display technologies, such as Micro OLED, particularly in terms of basic properties. In the realm of AR glasses, MicroLED optical engines are small and capable of delivering high brightness, with a volume of less than 0.2cc. These engines can offer brightness levels exceeding 350,000 nits, making them ideal for high-resolution displays in various weather conditions and scenarios. The growing demand for AI-assisted functions is expected to drive the need for MicroLED displays in AR glasses over the next one to two years.
In the automotive sector, MicroLED displays are favored for their high brightness, contrast, wide color gamut, and quick response times. These attributes make them suitable for smart in-cabin displays that feature freeform, curved, and flexible designs, as well as haptic feedback, enhancing the driver experience. MicroLED displays can also serve as augmented reality head-up displays (AR-HUD) or panoramic head-up displays (P-HUD) in vehicles. Additionally, they can be combined with transparent display technology to create innovative window displays.
TrendForce believes that AR head-mounted and automotive applications will be the next significant growth areas for MicroLED technology. These sectors are expected to provide substantial opportunities for the continued advancement of this cutting-edge display technology.
