Near-eye display shipments for XR to rise 56% in 2023

Near-eye display shipments for extended reality (XR) applications will grow 56% year-on-year to 21.4 million units in 2023, according to research consultancy Omdia.

The company’s Near Eye Display for XR Application Report – 2023 revealed that shipments of headsets and smart glasses for augmented reality (AR), virtual reality (VR) and mixed reality (MR) applications declined by 5.7% in 2022. This was due to low demand, inflation affecting budgets, and uncertainty following geopolitical conflict.

Senior research analyst Kimi Lin said: “Better performance is expected in 2023 as near-eye display shipments will grow by 56%, thanks to the new VR models released or announced in the first half of 2023 such as Sony PSVR 2, Apple Vision Pro and Meta Quest 3. All these new XR devices are equipped with dual displays, which is expected to increase display shipments considerably.”

Omdia estimates that year-on-year display revenues will rise 59% in 2023, even more than shipments, as brands adopt AMOLED or OLEDoS (OLED on Silicon) for higher-priced new products.  

Display shipments for VR will account for more than 95% of XR applications – a proportion Omdia expects to remain similar until 2026.