According to the latest XR near-eye display market forecast, global AR display panel shipments are expected to reach 21 million units by 2030, surpassing the 19 million units projected for VR displays. This shift signals a broader transformation in demand within the microdisplay industry, as manufacturers increasingly prioritize lightweight smart glasses designs.

The AI/AR glasses market still faces fundamental trade-offs between performance, device weight, and battery life, making it challenging for manufacturers to achieve an optimal balance across all three factors simultaneously. Taking products like Ray-Ban Meta as an example, one approach has been to eliminate the display module altogether, focusing instead on AI computing and audio-visual input capabilities. This reflects the industry's ongoing efforts to strike a balance between functionality, device weight, and battery life, while also prompting manufacturers to reconsider the role of displays in smart glasses design.

Omdia data indicates that the XR near-eye display market is undergoing a significant structural transformation: the VR display market share is projected to decline from 72% in 2026 to 43% by 2032, while the AR display market share is expected to rise from 28% to 57% during the same period.

Jay Shao, Principal Analyst for the display business at Omdia, noted: "The trend toward lightweight devices is redefining the design direction of smart glasses. As AI becomes an increasingly integral part of the user experience, manufacturers are reassessing the role of displays, given their impact on power consumption and device weight. Demand for AR glasses displays will continue to grow, but these design constraints may temper the pace of that growth. In the VR sector, as manufacturers continue to pursue more compact and comfortable devices, lightweight silicon-based OLED display technology is expected to gain a competitive edge in the long term."