AR Display Shipments Set to Overtake VR by 2030
Global augmented reality display shipments are forecast to reach 21 million units by 2030, overtaking virtual reality display shipments at 19 million units, according to research firm Omdia’s latest forecast for the extended reality near-eye display market.
The forecast points to a broader change in demand across the microdisplay industry. Manufacturers are increasingly prioritising lighter smartglasses while also seeking to incorporate more artificial intelligence capabilities into their devices.
Omdia said AI and AR glasses continue to face a fundamental trade-off between device performance, weight and battery life. Manufacturers have found it difficult to optimise all three factors simultaneously, creating a key design constraint for smartglasses.
One approach has been to remove the display altogether and instead focus on artificial intelligence computing and audio-visual input capabilities. Products such as Ray-Ban Meta illustrate this approach, in which the device does not rely on an integrated display.
The strategy illustrates the industry’s effort to balance functionality with device weight and battery endurance. It is also prompting manufacturers to reconsider how essential displays are to the next generation of smartglasses as artificial intelligence becomes a more important part of the user experience.
Omdia’s forecast indicates that the XR near-eye display market is undergoing a major structural shift. AR displays are expected to take a substantially larger share of the market over the coming years, while the proportion accounted for by VR displays is forecast to decline.
The share of VR displays is forecast to fall from 72 per cent in 2026 to 43 per cent by 2032. Over the same period, the share of AR displays is expected to rise from 28 per cent to 57 per cent.
The changing balance is linked to the move towards lighter devices. Jay Shao, principal analyst in Omdia’s Displays practice, said manufacturers are reconsidering the role of displays because of their impact on power consumption and device weight as AI becomes increasingly important to the user experience.
Omdia expects demand for AR glasses displays to continue growing, although design constraints affecting weight, power consumption, and battery life are expected to moderate the pace of growth.
VR display technology is expected to follow a different trajectory. Manufacturers are expected to favour solutions that can help make headsets more compact and comfortable as they address the size and comfort of VR devices.
In VR, lightweight silicon-based OLED display technology is expected to gain long-term advantages as manufacturers pursue more compact and comfortable headsets. The technology is therefore positioned within Omdia’s forecast as an important part of the longer-term development of VR display solutions.
The differing outlooks for AR and VR are reflected in the projected changes in display shipments and market share. AR displays are forecast to become the larger segment by 2030, when shipments are expected to reach 21 million units, compared with 19 million VR display shipments.
The market-share forecast points to a further shift by 2032. VR displays, which are forecast to account for 72 per cent of the market in 2026, are expected to represent 43 per cent of the market by 2032. AR displays are projected to move in the opposite direction, increasing from 28 per cent to 57 per cent over the same period.
The forecast also highlights the design challenges facing manufacturers as they develop smartglasses with greater AI capabilities. Devices must balance performance, weight, and battery life, while displays can increase power consumption and device weight.
For some products, removing the display is one way to address those constraints, with AI computing and audiovisual input becoming the focus instead. At the same time, manufacturers developing AR glasses continue to pursue display technologies despite the limitations imposed by device weight and power requirements.
In VR, the focus is expected to remain on display technologies that enable smaller, more comfortable headsets. Omdia expects lightweight silicon-based OLED technology to gain long-term advantages as manufacturers pursue those objectives.
The forecast places AR displays on a different growth path from VR displays within the XR near-eye display market. AR’s share is expected to rise substantially through 2032, while VR’s share is forecast to decline. The shift comes as manufacturers reassess the role of displays alongside the growing importance of artificial intelligence, device weight, and battery life.
Omdia’s projections therefore place AR displays ahead of VR displays in shipment volumes by 2030, with the market continuing to move towards augmented reality displays in the following years.
