According to a new report, the global mixed reality (XR) display shipment is expected to increase by 6 percent annually in 2025, with the alone agramed reality (AR) glass shipment will increase by 42 percent. According to the latest XR display shipment and forecast report of Counterpoint Research, while AR is relatively a niche segment, it is expected to grow fastest – compared to only 2.5 percent increase for virtual reality (VR) this year.

This growth will be inspired by the launch of the new AR smart glass that uses displays for AI-competent applications rather than media consumption. “Last year panel shipment saw a significant decline as XR device manufacturers tried to vacate the inventory and modify their business plans. The launch of the Meta Quest 3s was another contribution factor in the low panel shipment, as the same LCD panel is included in this headset,” reported in the report.

In this context, the estimated increase in 2025 will only show partial improvement, and the panel shipment will be much below the levels seen in 2023. According to the report, with an 87 percent stake in shipment in 2025, LCD's VR is expected to remain major technology.

LCD is used in entry-level headset, but is also used in high-end devices with advanced techniques such as quantum dots and miniLED. For AR, OLED-On-Silicon's stake is expected to be reduced to 75 percent, which will make a huge stake scope for Microled and LCOS displays.

While Meta and Google have recently performed a fully working microLED smart glass, they have not yet announced a plan to commercialize them. Currently in 2026, recovery is estimated to follow a similar pattern, with 38 percent increase in display shipment for AR and 2.1 percent for VR. “However, the American tariffs on Chinese products and how they will affect the demand for XR devices,” the report said. Without rapid decrease in trade war, the forecast in the next quarter update can be reduced. “