• AR/VR panel shipments expected to grow by 12% in 2024, lower than previously estimated.

• Meta’s next entry level headset could still be based on single LCD configuration.

• Panel revenues for VR are expected to reach $781M in 2024, with a significant increase for OLED on Silicon.

Display shipments for AR/VR headsets are expected to increase by 12% Y/Y in 2024, according to the latest update of the Biannual Augmented and Virtual Reality Display Technologies and Market Report. DSCC has revised its estimates and now expects panel shipments in 2024 to be much lower than the 19M units previously forecasted.

The revised shipments can be explained by two trends:

• While the launch of the Apple Vision Pro has generated many headlines worldwide, it has not stimulated sales of more affordable VR headsets such as Meta Quest 3. Sales of Sony PSVR2 have also slowed down considerably due to a lack of new games for the platform.

• We expect Meta to release a new entry-level headset to replace Quest 2. Meta is likely to continue to use a single LCD panel instead of switching to a dual panel configuration commonly found in other headsets. Given Meta’s dominant market share, this decision will have a significant impact on total panel shipments.

The five-year long-term forecast has been adjusted with slower but steady growth. AR/VR is still expected to be one of the fastest growing segments for the display industry. As previously, we combine VR and video passthrough AR (Mixed Reality) into a single category since they are based on the same type of headset. See-through AR includes smart glasses with waveguides, as well as ‘Smart Viewers’ such as XREAL Air 2.

Panel revenues for VR are expected to reach $781M in 2024. Revenues for OLED on Silicon (SiOLED or OLEDoS) will see a significant increase thanks to the Apple Vision Pro. The upcoming Samsung/Google headset will also be based on SiOLED. In contrast, Sony’s decision to pause PSVR2 production will result in an 83% Y/Y decline in AMOLED revenues in 2024. We assume production will resume after Sony clears its inventory.

This latest DSCC report includes shipment data and forecasts until 2029 and gives an update on SiOLED fabs and suppliers. The report also profiles key suppliers, their technology and demos shown at industry events. For inquiries, please email info@displaysupplychain.com.

DSCC, a Counterpoint Research Company will be hosting the 2024 AR/VR Display Forum in-person on October 1st, which will be fully dedicated to the emerging display technologies for Augmented Reality and Virtual Reality. The conference will be held in-person for the first time in the Silicon Valley, gathering leading companies and experts to discuss the latest innovations in display technologies for Augmented Reality and Virtual Reality. Registration now open: https://www.accelevents.com/e/ARVR-Display-Forum-2024