Report: Global XR Display Shipments Expected to Grow 6% in 2025

According to a recent report from market research firm Counterpoint Research, global shipments of XR (AR/VR) displays are expected to grow by 6% year-over-year in 2025. While augmented reality (AR) remains a relatively niche segment, its shipment growth is projected to reach 42% year-over-year, compared to a modest 2.5% growth for virtual reality (VR) displays.

Looking ahead to 2026, Counterpoint forecasts that AR display shipments will rise by 38%, while VR display shipments will see a slower growth rate of 2.1%. However, the report also warns of uncertainties surrounding U.S. tariffs on Chinese products and the potential impact on XR device demand. If trade tensions are not resolved soon, forecasts for upcoming quarters may be revised downward.

LCD is expected to remain the dominant display technology in the VR sector, accounting for 87% of shipments by 2025. LCD panels are used not only in entry-level headsets but also in high-end models that feature advanced technologies such as quantum dots and MiniLED.

In the AR sector, silicon-based OLED (SiOLED) is projected to lose market share, dropping to 75% in 2025, creating more opportunities for MicroLED and LCoS (Liquid Crystal on Silicon) displays. While companies like Meta and Google have recently showcased fully functional AR smart glasses with MicroLED displays, they have yet to announce any commercialization plans. In contrast, some Chinese brands and European company Even Realities are already selling lightweight AR glasses that integrate MicroLED and waveguide technologies.