The global mixed reality (XR) display shipments are expected to increase 6% annually in 2025, with shipments for augmented reality (AR) glasses alone growing 42%, according to a new report. &nbsp;
According to the latest 'XR Display Shipment and Forecast Report' by Counterpoint Research, while AR remains a relatively niche segment, it will grow the fastest, compared to only 2.5% growth for virtual reality (VR) this year.&nbsp;
This will be driven by the launch of new AR smart glasses that use the display for AI-enabled applications instead of media consumption.
&ldquo;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 for the lower panel shipments, since this headset includes a single LCD panel instead of two panels,&rdquo; the report mentioned.
In this context, the projected growth in 2025 will only be a partial recovery and panel shipments will remain far below the level seen back in 2023.
As per the report, LCD is expected to stay the dominant technology in VR, with an 87% share of shipments in 2025.
LCD is used in entry-level headsets, but also in high-end devices with advanced features such as quantum dots and MiniLED.
For AR, the share of OLED-on-Silicon is expected to decrease to 75%, 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 announced plans to commercialise them yet.
The recovery is currently projected to follow a similar pattern in 2026, with display shipments increasing 38%&nbsp; for AR and 2.1% for VR.
&ldquo;However, there is a lot of uncertainty on US 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,&rdquo; the report noted.
&mdash;IANS
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AR to grow fastest with 42% growth, while VR sees only 2.5% growth in 2025: Report by Counterpoint

Mixed Reality Display Market to Grow 6% in 2025

AR to grow fastest with 42% growth, while VR sees only 2.5% growth in 2025: Report by Counterpoint

May 3, 2025 | 15:58 IST