MicroLED chip revenue to reach $489.5m by 2028
TrendForce reports that the revenue from microLED chips is projected to reach approximately $38.8 million in 2024, with large displays remaining the primary source of contribution.
Looking ahead, breakthroughs in technical bottlenecks are on the horizon, while applications in automotive displays and the increasing maturity of full-colour AR glasses solutions are expected to propel microLED chip revenue to $489.5 million by 2028.
TrendForce says there are several challenges confronting the microLED industry in 2024. First, the slow progress in chip miniaturisation has hindered cost-reduction efforts. Second, the high price of microLED 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 optimisation and hardware-software integration. This has reduced the incentive for brands to innovate hardware and slowed the adoption of new display technologies like microLED.
Lastly, while automotive applications remain a key area of promise for microLED, 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 minimise the number of required assemblies could eliminate complex manufacturing steps such as side wiring and TGV (Through Glass Via).
Additionally, maximising light extraction efficiency is becoming increasingly important in microLED display design and production. Techniques such as microstructure and reflective structure design can reduce light loss and improve brightness by optimising reflected light.
TrendForce points out that as the yield rate of mass transfer technology improves, new challenges are emerging in inspection processes. Although the LED industry already has established testing methods, these solutions require refinement to handle the extreme miniaturisation and high volume of microLED chips. Addressing these inspection challenges is currently a critical priority for the industry.
MicroLED’s standout characteristics—high brightness, high contrast, and high transparency—continue to attract investment from manufacturers, says TrendForce.
These features enable microLED 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 microLED with silicon substrates offers a robust solution for near-eye displays in AR glasses, positioning microLED as a benchmark for next-generation metaverse-focused head-mounted devices.
TrendForce emphasises that the commercialisation of microLED technology should not overly depend on the mature consumer electronics market. Instead, manufacturers should capitalise on microLED’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 microLED's penetration across various markets, further driving growth and innovation.
