Although Micro LED technology holds enormous potential for the future, it faces significant challenges in finding a market fit in the short term due to high costs, technical bottlenecks, low market acceptance, and competitive pressure.
According to the latest research by Omdia, by 2031, the shipment volume of Micro LED displays is expected to reach 34.6 million units, accounting for a small portion (0.9%) of the overall display market.

Market Prospects Revised Down: Apple’s Delay
Following Apple’s decision to delay its Micro LED smartwatch display project in February 2024, market prospects have been revised. This delay has led many manufacturers to slow the development of related components and equipment.
Key Reasons for the Market Setback
- High Costs and Technical Bottlenecks: The production costs of Micro LED displays remain high, limiting their widespread adoption in the consumer market. Despite significant advantages in terms of brightness, contrast, and low power consumption, the high price of Micro LED products makes them difficult for average consumers to accept. For instance, the currently available Micro LED televisions are priced around $100,000. Additionally, the slow progress in the miniaturization of Micro LED chips has hindered the anticipated cost reduction, exacerbating the issue.
- Low Market Acceptance: Due to high prices and technical complexity, Micro LED has not yet achieved mass production, and its applications in consumer electronics (such as smartphones and televisions) remain in the conceptual stage. Even in emerging fields like AR glasses, Micro LED faces challenges such as a lag in content ecosystem development, further hindering market acceptance.
- Competitive Pressure and Market Shift: In the wearable device market, brands tend to focus more on software development than on introducing new display panels, weakening the market appeal of Micro LED technology. At the same time, other display technologies such as OLED and Micro OLED continue to advance, making the competition for Micro LED more intense.
- Industry Confidence and Investment Fluctuations: The exit of Apple from the Micro LED market has eroded industry confidence, leading investors to question the future prospects of Micro LED technology.
Ongoing Market Activity and Future Projections
Despite these setbacks, market activity is ongoing. Omdia forecasts that shipments will reach 1.7 million units by 2027, with the primary growth coming from XR devices (especially smart glasses) using LEDos (silicon-based LED backplanes). By 2031, XR devices are expected to account for 24.4% of the Micro LED market.

The miniaturization and flexible display characteristics of Micro LED technology give it broad application potential in fields such as smartwatches and health monitoring devices. This technology is particularly well-suited for smart glasses due to its ability to achieve very small sizes (as small as 0.15 inches diagonally), excellent sunlight readability, low power consumption, and lightweight design.
In 2024, display manufacturers showcased prototypes for automotive displays, public displays, and virtual studio applications. According to Jerry Kang from Omdia, manufacturers are targeting niche markets where existing technologies (OLED and LCD) fall short in meeting size and performance requirements. At the same time, suppliers continue to develop technologies to improve the manufacturing process.
Data indicates that Micro LED displays remain a niche technology and may only find a place in specific applications, rather than achieving broad market penetration. This seems to be a case where the technology has found its appropriate market positioning—not as a comprehensive replacement for existing display technologies, but as a targeted solution for applications with specific requirements that align with the advantages of Micro LED technology.
Moreover, Micro OLED has clear advantages in near-eye display fields such as AR/VR, and it is expected to gradually replace traditional OLED technology in the coming years. It will likely be widely applied in wearable devices and micro-displays. This technology could serve as a “substitute” before Micro LED technology fully matures, potentially inhibiting the formation of the Micro LED industry ecosystem to some extent.
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