Micro-LED Display Market - Global Outlook & Forecast 2023-2028

MARKET OVERVIEW

The global micro-LED display market size was valued at USD 43.62 million in 2022 and is expected to reach USD 7.51 billion by 2028, growing at a CAGR of 135.88% during the forecast period. The increasing demand for high brightness and superior image quality in commercial and industrial applications, coupled with the surge in automobile production and innovation, is driving the growth of micro-LED displays. These displays offer a compelling solution for various industries by providing enhanced visual performance, energy efficiency, and durability. In the automotive sector, micro-LED displays contribute to innovative in-car entertainment systems, augmented reality dashboards, and advanced driver assistance systems, fostering a surge in adoption. Additionally, the expanding use of micro-LED displays in retail, healthcare, and manufacturing sectors further propels the micro-LED display market growth as businesses seek cutting-edge display technologies to improve efficiency and customer experiences. The versatility and advancements in micro-LED technology position it as a key player in the display market, poised for sustained growth across diverse industrial applications.

The micro-LED display market encompasses producing and distributing microlight emitting diode (Micro-LED) displays. These displays are characterized by using tiny individual LEDs as pixels, delivering high resolution, brightness, contrast, and energy efficiency. They find applications in consumer electronics like TVs, smartphones, laptops, tablets, smartwatches, and others, as well as large-scale displays for commercial and industrial use. The micro-LED display market has been expanding due to increasing demand for advanced display technology offering superior visual quality and energy savings.

There is a massive opportunity for micro-LEDs (micro-light-emitting diodes) to enter major display markets and replace incumbent LCD and OLED (organic light-emitting diode) technologies in a wide range of applications, from smartphones, HDTVs, and wearables such as smartwatches, and virtual/augmented reality headsets.

MARKET TRENDS & OPPORTUNITIES

Growing Popularity of Wearable Devices
Wearable devices, encompassing a wide range of products, including smartwatches and fitness trackers, have become increasingly prevalent in today's tech-savvy society. These devices have revolutionized how we monitor and manage our health, stay connected, and access information on the go. One critical aspect that enables the functionality and appeal of these wearables is the display technology they employ. Small, lightweight, and energy-efficient displays are paramount to meet this market segment's stringent demands. In this regard, the micro-LED display market has emerged as a highly suitable and promising solution, owing to their minuscule size and exceptionally low power consumption.

Rise in Adoption of Electronic Displays in Automotives
The increasing demand for automotive technology and features directly impacts the rising demand for Micro-LED displays. This surge in demand is driven by various factors that make Micro-LED displays a preferred choice for automotive applications. Moreover, as vehicles become more advanced and technologically sophisticated, the need for high-quality displays in automotive interiors has grown significantly. Consumers now expect modern vehicles to come equipped with state-of-the-art infotainment systems, digital cockpits, and advanced driver assistance systems (ADAS).

INDUSTRY RESTRAINTS

High Competition From Other Display Technologies
The micro-LED display market faces intense competition from well-established counterparts, notably OLED (Organic Light-Emitting Diode) and LCD (Liquid Crystal Display). This competitive environment presents various challenges and considerations within the display industry. For instance, LCD technology remains dominant due to its cost-effectiveness, scalability, and versatility. The high competition from OLED and LCD technologies exerts pressure on the micro-LED display market on multiple fronts, such as price sensitivity, market penetration, and many more.

SEGMENTATION INSIGHTS

INSIGHTS BY APPLICATIONS
The TV & home cinema applications segment dominated the global micro-LED display market in 2022. The burgeoning popularity of TV and home cinema systems, driven by the widespread adoption of streaming services like Netflix, Amazon Prime, Hulu, and others, has led to a significant surge in demand for Micro LED displays. These advanced displays offer exceptional image quality, durability, and versatility, making them ideal for consumers seeking an immersive viewing experience. As technology evolves and becomes more affordable, Micro LED displays are poised to play a pivotal role in shaping the future of home entertainment and commercial applications. Furthermore, the heightened awareness and exposure to technology in tier 1 and tier 2 cities contribute significantly to adopting micro-LED. Residents in these areas are more attuned to technological advancements and are thus more receptive to innovative displays like micro-LED.

INSIGHTS BY PANEL SIZE
The global micro-LED display market by panel size is segmented into large, small, and medium. The large panel segment holds the most significant market share in 2022, attributed to the rising popularity of large-screen displays in various applications, including televisions, digital signage, and consumer electronics. The heightened demand for large panels can be attributed to the active participation of prominent manufacturers, including industry leaders such as Samsung, LG Electronics, SNA Displays, and several others. Moreover, the small segment has the highest CAGR due to the rising popularity of wearable devices like smartwatches and AR glasses, which has driven the demand for small, high-resolution displays that can fit comfortably on these devices.

GEOGRAPHICAL ANALYSIS

The APAC region held the largest market share in the global micro-LED display market in 2022, driven by increasing demand for smartphones, automobiles, government support, and other factors. China, South Korea, and Japan are anticipated to play pivotal roles as significant growth drivers within the APAC region. The North American region contributed over 21% of the total revenue, primarily attributed to the presence of key manufacturers such as Samsung Electronics and Sony Corporation, along with a well-developed technological infrastructure. Moreover, Europe has several prominent micro-LED display manufacturers, including LG Electronics, Innolux Corporation, and AU Optronics Corporation.

In the Middle East and Africa, the demand for micro-LED displays is driven by the region's expansion of smartphone manufacturing facilities and lower labor costs. The Latin American micro-LED display market is poised to be dominated by Brazil and Mexico due to the region's largest economies and expanding middle-class income.

COMPETITIVE LANDSCAPE

The global micro-LED display market is in its early stages of development but is witnessing rapid growth, with several companies competing to develop and commercialize this transformative technology. Major players in the global micro-LED display market, including industry giants like Samsung Electronics, Sony, LG Electronics, AU Optronics, Plessey Semiconductors, and JBD, are making significant investments in research and development. They focus on developing micro-LED displays tailored for various applications, ranging from smartphones, smartwatches, televisions, and laptops to augmented and virtual reality (AR/VR) headsets. More than 20 companies are competing in this segment, and many large companies are entering this segment to capture the market share and reduce dependency on other companies. Bigger companies like Google are entering the micro-LED display market through inorganic growth, and some have invested mainly in research and development.

Beginning of Mass Production in the Micro-LED Display Market

• Apple company plans to set up a supply chain to start the production of micro-LED smart displays for smartwatches. Apple is planning to launch its products to the market by 2025. Apple manufactures its micro-LED to reduce its dependency on Samsung, so it has spent around a billion dollars on research and development.
• The OEMs, start-ups, and display manufacturers have spent over USD 8 billion on micro-LED displays. Google has acquired Raxium and Jasper for more than US$1 billion. PlayNitride conducted its first micro-LED IPO in 2022
• Companies are focusing on smartwatches (Apple Company), TVs (Samsung company), automotive (PlayNitride), AR and other technologies. Companies like AUO and PlayNitride are planning to enter mass adoption by 2027.

Until 2020, companies using micro-LED required their own mass transfer. Now, more than ten companies are offering micro-LED-dedicated tools to end-users. This has eased the process and reduced the entry barrier to the market. This will increase the penetration rate in the market. These collective reasons will make the micro-LED display market grow faster post-2025.

The main goal of the micro-LED segment is to enter the residential TV segment, which is around USD 200 – USD 300 billion in sales annually. For the first few years at least, Micro-LEDs will likely want to compete in the premium segment, which is currently controlled by OLEDs and QLEDs. In the post-maturity period of these technologies, the micro-LEDs will take up the market and drive sales.

Recent Developments in the Global Micro-LED Display Market

• AUO Corporation: The company focuses on R&D to improve the market technology and capture more share. For instance, In 2023, the organization launched a 13.5-inch Transparent Micro LED display with a pixel density of 163 ppi, a transparency rate of up to 55%, and more. Through this, the company expands its presence in the smart automotive market and explores infinite possibilities in transparent display applications to increase its market share and revenue.
• LG Electronics: In 2023, LG Electronics can launch LG MAGNIT for virtual production to strengthen its position in the broadcasting, film, and extended reality (XR) stage industries by targeting content creators and studios seeking high-quality, customizable, and versatile display solutions.
• PlayNitride: In 2022, the organization participated in SID display week to showcase its MicroLED commercialization solutions, such as the 132-inch PixeLED Matrix, which features 116% NTSC, 2000 brightness, and MicroLED display. 9.38-inch to automotive with features 65%~70% transparency, and others.

Impact of Micro-Led Cost in Various Applications
The significant price difference between micro-LED and OLED displays in the TV and smartwatch markets will likely substantially impact the industry. In the TV segment, where the average price for a micro-LED display is approximately USD 149,999.99, compared to over USD 2,110.8 for OLED displays, micro-LED’s higher cost may challenge gaining widespread consumer adoption. The OLED technology, with its comparatively lower price point, might continue to dominate the TV market for most consumers who prioritize affordability over cutting-edge display technology. On the other hand, in the smartwatch sector, where the price difference is less pronounced (micro-LED at USD 115 and OLED at USD 38), adopting micro-LED displays may be more feasible. The lower price difference in this category could attract consumers looking for enhanced display performance in compact devices and support the micro-LED display market growth. The success of micro-LED displays in these markets will likely depend on ongoing advancements in manufacturing processes and efforts to reduce production costs, making them more accessible to a broader consumer base.