With the rapid development of display technology, Micro LED, as a new display technology, is gradually becoming the focus of attention in the industry. According to TrendForce's latest report, the output value of Micro LED chips is expected to reach US$580 million by 2028, showing strong growth momentum and huge market potential.
The rapid growth of the Micro LED chip market is due to several factors. First of all, the continuous advancement of cost reduction and size reduction projects has made Micro LED technology more cost-effective. Secondly, the continuous investment in large-scale display applications by manufacturers including LGE, BOE and Vistar, as well as the development of watch products by AUO, have promoted the application expansion of Micro LED technology in different fields.
In addition, the gradual expansion of new display applications of Micro LED technology in headsets and automotive needs provides new growth points for the market growth. The development of these application areas indicates that Micro LED technology will be more widely commercialized in the coming years.
Despite the broad market prospects, the development of the Micro LED industry still faces some challenges. The difficulty of reducing costs and the challenges of technical processes are the main reasons that have led to the cancellation of some projects, such as the Apple Watch project. In addition, the development of mass transfer technology, the upgrading of detection and repair technology, as well as the wafer utilization rate and high precision when wafer size shrinking, are all technical problems that need to be overcome in the development of Micro LED industry.
Figure: Micro Chip Market Size Forecast 2024-2028 (Source: Trend Force)
Micro LED technology has a significant fundamental advantage over competing technologies, such as Micro OLED. In terms of the demand for AR glasses, Micro LED optical machines have shown the characteristics of high brightness and small size, and the brightness has moved towards more than 350,000 nits. With the development of AI-assisted tools, it is expected that in the next 1 to 2 years, the demand for AR glasses using Micro LED as display technology will gradually appear.
In the field of automotive display, Micro LED technology is expected to be integrated into the intelligent cockpit integrated automotive display solution with its high brightness, high contrast, wide color gamut, and fast response to comprehensively upgrade the driving experience. In addition, the application prospect of Micro LED in automotive scenarios is also expanding, and in the future, it can be used as augmented reality and panoramic head-up displays, or combined with transparent display technology for car windows as an innovative display technology.
In summary, the Micro LED chip market is expected to witness significant growth in the next five years. With the advancement of technology and the reduction of costs, Micro LED technology will show its unique advantages and application potential in many fields. Despite the challenges, Micro LED is poised to become the next major milestone in the field of display technology through continuous technological innovation and market development.
However, with the continuous progress of technology and the improvement of the industrial chain, the cost of Micro LED chips is expected to gradually decrease, and the yield will continue to increase. This will bring more opportunities to the Micro LED chip market. At the same time, with the popularization and application of 5G, Internet of Things and other technologies, the Micro LED chip market will also usher in new growth points.
