Micro LED Market Set for Growth Amid Challenges, Poised to Revolutionize Displays

The global Micro LED chip market is projected to achieve an output value of $38.8 million USD in 2024, with large displays remaining the primary driver of growth, according to TrendForce’s latest research. By 2028, advancements in technology and increasing demand for applications such as automotive displays and full-color AR glasses are expected to propel the market to an estimated $489 million USD.

Despite its promise, the Micro LED industry faces several obstacles in 2024. The slowdown in wafer miniaturization is hampering cost reductions, while the high price of Micro LED displays continues to limit consumer demand, particularly in large display segments already in mass production. Meanwhile, wearable device manufacturers are prioritizing software optimization and hardware-software integration, reducing their motivation to introduce new hardware innovations like Micro LED. Automotive applications, while promising, are still in the early stages of validation and introduction, with limited contributions to production value thus far.

From a technical standpoint, efforts to optimize large Micro LED displays focus on improving seamless splicing. In the short term, adopting alternative driver designs can enhance backplane production yield, reducing costs. For medium to long-term solutions, increasing backplane sizes and simplifying production processes, such as side-plating conductor trace lines or glass drilling, can further streamline manufacturing.

To maximize light output efficiency, the industry is focusing on microstructure and reflective structure designs to minimize light loss and improve reflected light proportions. Additionally, advancements in mass transfer yields have shifted attention to inspection and repair technologies, as traditional LED inspection programs often fall short for Micro LEDs due to their smaller wafer sizes and higher quantities.

Micro LED technology’s defining characteristics—high brightness, high contrast, and transparency—continue to attract significant investment. These attributes make Micro LEDs ideal for transparent displays, AR-HUDs (Augmented Reality Head-Up Displays), and P-HUDs (Panoramic Head-Up Displays), enabling seamless integration of virtual and real-world information in automotive applications.

Moreover, Micro LEDs combined with silicon substrates as near-eye display light sources are paving the way for AR glasses, a cornerstone of the burgeoning metaverse ecosystem. This convergence of technologies offers a wealth of opportunities in head-worn devices.

TrendForce emphasizes the importance of diversifying Micro LED applications beyond the traditional consumer electronics market. By leveraging its unique display characteristics, Micro LED technology can be paired with sensor solutions to unlock new possibilities and establish innovative niche applications, ensuring broader commercialization and industry growth.