AR, Automotive Applications to Drive Micro LED Chip Revenue to $489.5 Million by 2028
December 3, 2024 | TrendForceEstimated reading time: 2 minutes

TrendForce reports that the revenue from Micro LED chips is projected to reach approximately US$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-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.
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 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.
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
DELO Validates Reliability of Adhesives in miniLED Connections, Paving Way for Scalable MicroLED Production
09/10/2025 | DELODELO has conducted extensive reliability tests on directional conductive adhesives, confirming their suitability as a robust alternative to solder in miniLED display manufacturing.
KYZEN to Feature High-Reliability MICRONOX Chemistries at IMAPS Symposium
09/10/2025 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, is pleased to announce its participation at the International Symposium on Microelectronics or IMAPS Symposium, taking place September 29-October 3 at Town & Country Resort in San Diego, CA.
Smartwatches Drive Micro LED Adoption, Market to Surpass $461 Million by 2029
09/09/2025 | TrendForceMicro LED penetration in consumer electronics is accelerating. Following Samsung’s launch of its 140-inch Micro LED TV in 2023, Garmin is set to introduce the Fenix 8 Pro smartwatch with Micro LED in 2025, alongside Sony Honda’s planned 30-inch automotive display in its Afeela model at the end of the same year.
KYZEN to Highlight High-Reliability MICRONOX Chemistries at SEMICON West 2025
09/08/2025 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, is pleased to announce its participation in SEMICON West 2025, taking place October 7–9 at the Phoenix Convention Center in Phoenix, Arizona.
STMicroelectronics Sets 20-year Availability for Popular Automotive Microcontrollers
09/08/2025 | STMicroelectronicsSTMicroelectronics has extended the ongoing longevity program for its widely deployed SPC58 automotive microcontrollers (MCUs) from 15 years to 20 years, ensuring availability of general-purpose and high-performance product lines until at least 2038.