applications in automotive displays and the increasing maturity of full-color AR glasses solutions are expected to propel micro LED chip revenue to $489.5 million by 2028.
TrendForce highlights several challenges confronting the micro LED industry in 2024. First, the slow progress in chip miniaturization has hindered cost-reduction efforts. Second, the high price of micro LED displays has resulted in weak end-user demand, limiting the shipment scale of large-sized displays already in production. Third, the focus in the wearable device market has shifted to software optimization and hardware-software integration. This has reduced the incentive for brands to innovate hardware and slowed the adoption of new display technologies like micro LED. Lastly, while automotive applications remain a key area of promise for micro LED, they are still in the early stages of adoption and validation, making it difficult to contribute significantly to revenue in the short term.
From a technical perspective, addressing the challenge of seamless large-sized display assembly is crucial. In the short term, improving backplane production yield through different driving schemes can enhance efficiency and reduce costs. Over the medium to long term, increasing backplane size to minimize the number of required assemblies could eliminate complex manufacturing steps such as side wiring and TGV (Through Glass Via).
Additionally, maximizing light extraction efficiency is becoming increasingly important in micro LED display design and production. Techniques such as microstructure and reflective structure design can reduce light loss and improve brightness by optimizing reflected light.
As the yield rate of mass transfer technology improves, new challenges are emerging in inspection processes, according to TrendForce. Although the LED industry already has established testing methods, these solutions require refinement to handle the extreme miniaturization and high volume of Micro LED chips. Addressing these inspection challenges is currently a critical priority for the industry.
Micro LED’s standout characteristics—high brightness, high contrast, and high transparency—continue to attract investment from manufacturers. These features enable Micro LED to integrate into transparent displays for automotive windows or as part of AR-HUD or P-HUD systems, meeting the growing demand for seamless integration of virtual and real-world information for drivers and passengers. Additionally, combining Micro LED with silicon substrates offers a robust solution for near-eye displays in AR glasses, positioning Micro LED as a benchmark for next-generation metaverse-focused head-mounted devices.
TrendForce emphasizes that the commercialization of Micro LED technology should not overly depend on the mature consumer electronics market. Instead, manufacturers should capitalize on Micro LED’s unique display capabilities, pairing them with diverse sensor solutions to empower devices with new functionalities and uncover imaginative niche applications. This strategy is expected to accelerate Micro LED’s penetration across various markets, further driving growth and innovation.