The microdisplay market has been forecast to increase at a compound annual growth rate (CAGR) of 32.5% through to 2016, driven by the increasing adoption of augmented reality devices, and the increasing number of near-to-eye applications.
Microdisplays, the tiny flat panels that power business front projectors, rear-projection TVs, home theatre projectors, and viewfinders in digital camcorders and cameras, are experiencing steady growth.
According to a recent report, 'Global Microdisplay Market 2012-2016,' the microdisplay market is currently witnessing an increase in the number of near-to-eye application devices such as camcorder viewfinders, digital camera viewfinders, video phones, and HMDs.
As these devices are integrated with microdisplays, the increase in their demand fosters the demand for microdisplays, thus driving the growth of the microdisplay market. Furthermore, the demand for near-to-eye application devices stems majorly from the consumer electronics sector and the military and defence sector.
The most important of the drivers in this market is the increased adoption of augmented reality products. Augmented reality products such as HMDs and HUDs use microdisplays extensively in their projection units. Thus, the increased adoption of these augmented reality products is expected to foster the demand for microdisplays.
Though growing demand for projection TVs is expected to generate greater demand for microdisplays, analysts believe the market is too small to accommodate all the suppliers, and that consolidation is imminent.
One of the key challenges facing the market is the lack of acceptance of microdisplay-based products. As a result of the high cost and delayed launch of microdisplay-based products in the market, the adoption of such products are low among consumers.Moreover, some of the microdisplay-based devices are yet to be commercialised.
Key players currently dominating the microdisplays market include AU Optronics Corp, eMagin Corp., Kopin Corp., and Universal Display Corp.
For more information on the microdisplays market, see the latest research: Microdisplays Market
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