**AR Display Shipments Expected to Surpass VR as Smartglasses Evolve**
Global shipments of augmented reality (AR) displays are projected to reach 21 million units by 2030, surpassing virtual reality (VR) display shipments, which are expected to total 19 million units. This forecast comes from Omdia, a research firm specializing in the extended reality (XR) near-eye display market. The anticipated shift highlights a significant transformation in consumer demand within the microdisplay industry, as manufacturers increasingly focus on developing lighter smartglasses and integrating advanced artificial intelligence (AI) capabilities.
According to Omdia, the AR and AI glasses market is currently navigating a complex balance involving device performance, weight, and battery life. Manufacturers are facing challenges in optimizing all three aspects simultaneously. As a result, some companies have begun exploring alternative designs that minimize or eliminate traditional displays, opting instead to enhance AI computing and audio-visual input features. A notable example of this trend is the Ray-Ban Meta smartglasses, which emphasize functionality over conventional display technology.
Jay Shao, principal analyst in Omdia’s Displays practice, commented on the ongoing evolution of smartglasses, stating, “The shift towards lighter devices is redefining the design of smartglasses.” He noted that as AI becomes a more integral part of user experiences, manufacturers are reevaluating the necessity of displays due to their influence on power consumption and overall device weight. Shao also indicated that while demand for AR glasses displays is expected to grow, the design constraints imposed by the need for lightweight and energy-efficient devices may temper the growth rate.
The forecast from Omdia outlines a significant structural change in the XR near-eye display market. The share of VR displays is projected to decline from 72% in 2026 to 43% by 2032. Conversely, AR displays are expected to increase their market share from 28% to 57% during the same period. This shift suggests that consumers may be leaning more towards augmented reality experiences, which are often perceived as more practical and versatile for everyday use.
In the realm of VR technology, the trajectory appears to diverge from that of AR. Manufacturers are likely to prioritize solutions that enhance the compactness and comfort of VR headsets. Shao emphasized that lightweight silicon-based OLED display technology is anticipated to offer long-term advantages in this area, as companies strive to create more user-friendly devices.
As the smartglasses market continues to evolve, the development of these devices will increasingly hinge on the ability to deliver sophisticated AI functionalities without significantly increasing weight or compromising battery life. Omdia’s analysis suggests that the balance between AR and VR technologies within the near-eye display market is poised to shift decisively in favor of augmented reality in the coming years.
The implications of this shift are far-reaching, potentially influencing not only consumer preferences but also the strategies employed by manufacturers in the design and production of smartglasses. As AR technology becomes more prevalent, it may pave the way for new applications and user experiences that leverage the unique capabilities of augmented reality.
In summary, the forecast by Omdia indicates a transformative period for the extended reality market, with AR displays set to take a leading role as manufacturers adapt to changing consumer demands and technological advancements. The focus on lighter, more efficient devices reflects a broader trend in the tech industry, where functionality and user experience are increasingly prioritized alongside traditional performance metrics.