According to Omdia, the near-eye display market for augmented reality (AR), virtual reality (VR), and mixed reality (MR) is projected to reach $1.2 billion in 2026, representing a year-on-year growth rate exceeding 200%. This surge is primarily driven by the widespread adoption of OLED on Silicon (OLEDoS), also known as Micro OLED, which is mainly used in smart glasses and head-mounted display devices. Near-eye displays for AR, VR, and MR refer to screens integrated into these devices and other similar head-worn apparatuses, such as smart glasses and head-mounted displays. Key application areas for these displays include consumer electronics, entertainment systems, gaming hardware, industrial applications, and research and development.
The year 2025 witnessed a decline in near-eye display shipments due to a lack of new VR terminal products, including video see-through mixed reality (VST MR) devices. Omdia's latest report indicates that revenue from VR, AR, and MR near-eye displays fell from $717 million in 2024 to $392 million in 2025, a decrease of 45%. However, 2026 is anticipated to be a year of recovery for the AR, VR, and MR near-eye display market. Shipments are expected to rebound, fueled by sales projections for a new generation of MR devices.
Concurrently, smart glasses are gaining more attention compared to bulkier head-mounted devices. Major brands are planning to launch numerous new smart glasses products between 2026 and 2027. Beyond creating more attractive and stylish products, these companies are actively promoting supply chain development, technological advancement, and ecosystem growth. Smart glasses are considered more likely to achieve widespread consumer acceptance, similar to how smartwatches gradually replaced traditional timepieces, compared to head-mounted devices. If these new smart glasses products successfully launch in the 2026-2027 period, the related supply chain is expected to benefit significantly, gaining greater confidence for developing new technologies and product roadmaps. This period is forecasted to mark the true take-off stage for the smart glasses market.
Most leading brands, including Meta, Apple, Huawei, RayNeo, and Pico, are anticipated to introduce new MR products in 2026. These products will utilize OLEDoS displays, significantly impacting near-eye display shipment volumes. Among these, Meta's upcoming product is particularly noteworthy. The company plans to release a lightweight MR device with a design resembling the Apple Vision Pro, featuring an external battery pack. However, its display size will be just 0.91 inches, notably smaller than the Vision Pro's screen. The use of a smaller display aims to reduce costs and decrease the headset's weight. Furthermore, there is widespread market speculation that demand for this product could be substantial. Meta is currently in discussions with BOE and SeeYA for display supply. Due to high sales expectations for Meta's new lightweight MR device, near-eye display shipments are projected to rebound sharply in 2026, reaching 20.2 million units, a 57.9% year-on-year increase.
Driven by this robust growth, Omdia expects the AR, VR, and MR near-eye display market revenue to reach $1.2 billion for the first time in 2026, climbing to $2.8 billion by 2028. Among various display technologies, OLEDoS is identified as the core technology propelling this growth.
From a long-term perspective, Omdia believes AR display technology holds greater growth potential compared to VR display technology. This is because current primary applications for VR remain largely confined to gaming, video watching, and live streaming, resulting in a relatively limited scope. Unless major breakthroughs occur in application diversity, VR growth is expected to remain stable but unlikely to experience explosive expansion. In contrast, although the current application base for AR is smaller, Omdia is more optimistic about the growth prospects for the AR display market, contingent on continued advancements in display and optical engine technologies.
Prior to 2023, TFT LCDs with high-brightness backlights dominated the AR, VR, and MR near-eye display market, accounting for the majority of display revenue. However, this landscape shifted in 2024 when OLEDoS, also referred to as Micro OLED, became the leading near-eye display technology by revenue for the first time. Nevertheless, market contraction occurred in 2025 due to product strategy adjustments by certain brands, such as for the Apple Vision Pro, and because consumers are not yet fully prepared to adopt near-eye devices widely.
Meanwhile, LED on Silicon (LEDoS), also known as Micro LED, has proven to be a highly promising solution for near-eye display scenarios requiring high brightness and small sizes. Currently, some brands plan to launch smart glasses featuring LEDoS, targeting the high-end, premium market segment. Conversely, many gaming console manufacturers and consumer electronics companies are focusing more on OLEDoS-based smart glasses or head-mounted displays.
An analysis of the three main near-eye display technologies follows: Liquid Crystal on Silicon (LCoS), OLEDoS, and LEDoS.
LCoS displays images by controlling liquid crystal pixels with a backlight. Consequently, LCoS devices tend to be thicker and heavier, with less optimized power consumption compared to other silicon-based display technologies. LCoS employs various methods for full-color display, including Color Filter (CF) LCoS and Color Sequential (CS) LCoS.
OLEDoS displays images through self-emissive OLED pixels. This allows OLEDoS displays to be thinner, lighter, and typically consume less power than LCoS displays. OLEDoS also has different technological approaches for full-color display, such as White OLED on Silicon (WOLEDoS) and RGB OLEDoS. However, WOLEDoS is currently the primary technology in mass production.
LEDoS displays images using self-emissive LED pixels. Similarly, LEDoS enables thinner and lighter designs and has the potential for lower power consumption than both LCoS and OLEDoS. Various technological routes exist for LEDoS full-color display, including Color Conversion (CC) LEDoS, RGB LEDoS, stacked RGB LEDoS, and tunable RGB LEDoS. Presently, CC LEDoS is the main technology available on the market.
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