New Delhi: The global mixed reality (XR) display shipments are expected to increase by 6 per cent annually in 2025, with shipments of augmented reality (AR) glasses alone growing by 42 per cent, according to a new report. According to the latest XR Display Shipment and Forecast Report by Counterpoint Research, while AR remains a relatively niche segment, it is expected to grow the fastest — compared to only 2.5 per cent growth for virtual reality (VR) this year.
This growth will be driven by the launch of new AR smart glasses that use displays for AI-enabled applications instead of media consumption. “Last year saw a significant drop in panel shipments as XR device makers tried to clear inventories and revised their business plans. The launch of the Meta Quest 3S was another contributing factor to the lower panel shipments, since this headset includes a single LCD panel instead of two,” the report stated.
In this context, the projected growth in 2025 will only represent a partial recovery, and panel shipments will remain far below the levels seen in 2023. According to the report, LCD is expected to remain the dominant technology in VR, with an 87 per cent share of shipments in 2025.
LCD is used in entry-level headsets, but also in high-end devices featuring advanced technologies such as quantum dots and MiniLED. For AR, the share of OLED-on-Silicon is expected to decrease to 75 per cent, making room for a larger share of MicroLED and LCoS displays.
While Meta and Google have recently demonstrated fully functioning MicroLED smart glasses, they have not yet announced plans to commercialise them. The recovery is currently projected to follow a similar pattern in 2026, with display shipments increasing by 38 per cent for AR and 2.1 per cent for VR. “However, there is a lot of uncertainty regarding U.S. tariffs imposed on Chinese products and how they will impact demand for XR devices. Without a rapid de-escalation in the trade war, the forecast will likely be downgraded in the next quarterly update,” the report noted.
