AR Glasses: The Killer App Fueling Micro LED's Explosive Growth

A new report from Counterpoint Research forecasts a massive surge in the Micro LED market, with global display panel revenue projected to jump by 150% year-over-year in 2025. This growth is largely attributed to the commercialization and adoption of AR smart glasses, which are becoming the technology's first "killer" application.

 

AR Glasses: The Killer App Fueling Micro LED's Explosive Growth

 

AR glasses are poised to become the largest segment for Micro LED technology, accounting for a dominant 58% of the total revenue in 2025. This significant share establishes the wearable technology as the primary driver for the market's expansion and a key entry point for Micro LED displays.

 

AR Glasses: The Killer App Fueling Micro LED's Explosive Growth

 

The smartwatch sector has also witnessed a landmark development with the launch of Garmin's fēnix 8 Pro, the first smartwatch to feature a Micro LED screen. According to the report, this successful release has not only boosted supply chain confidence but also demonstrated that panel manufacturer AUO is capable of meeting the stringent requirements of OEMs.

In the television and broader wearables markets, Micro LED remains a niche technology primarily due to its high cost. However, its superior performance—offering better brightness, contrast, and a longer lifespan than OLED—successfully justifies the premium pricing strategy for high-end products.

 

AR Glasses: The Killer App Fueling Micro LED's Explosive Growth

 

Looking ahead to 2026, the television segment is expected to overtake AR glasses and claim the largest share of Micro LED revenue. While Samsung has long dominated the Micro LED TV space, it now faces strong competition from Chinese brands like TCL and Hisense. This new competitive landscape is anticipated to drive down prices and stimulate sales growth.

The automotive sector is also set to adopt this technology, with the first shipments of in-car Micro LED panels scheduled for 2026. This segment is projected to account for 2% of total revenue in its debut year, offering higher reliability and unique design flexibility compared to existing OLED solutions.

Counterpoint's Associate Director, Guillaume Chansin, noted that while Apple's decision to cancel its Micro LED panel production plan two years ago sent shockwaves through the industry, the remaining players have since proven the technology's vast potential. The industry's focus has now strategically shifted from pursuing high shipment volumes to creating a strong value proposition and achieving competitive differentiation.

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