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From Technologies to Markets © 2020 Displays & Optics for AR & VR 2020 Market and Technology Report 2020 Sample

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Page 1: Displays & Optics for AR & MR 2020 - Yole Développement ... · o Tracking the eye o VAC VR outlook 287 Related reports About Yole Développement. 5 ... This report covers market

From Technologies to Markets

© 2020

Displays & Optics for AR & VR 2020

Market and Technology

Report 2020

Sample

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2Displays and Optics for AR & VR 2020 | Sample | www.yole.fr | ©2020

TABLE OF CONTENTS

Part 1/3

Acronyms 05

Accepted definitions for AR, MR & VR 06

Scope of the report 07

Methodology & definitions 10

Report methodology 11

How we do it 12

About the authors 13

Companies cited in this report 14

What we got right, what we got wrong 15

The 3 page executive summary 16

Executive summary 20

Context 44

AR & VR market forecasts 62

o Headsets volumes

o AR: number of headsets

o AR: number of headsets per use case

o AR: optics technologies penetration rates

o AR: optics technologies penetration rates for waveguides

o AR: optics technologies lenses numbers

o AR: optics technologies lenses values

o AR: high refractive index wafer numbers

o AR: high refractive index wafer values

o AR: display engines penetration rates

o AR: microLED penetration rate

o AR: display engines numbers

o AR: display engines values

o VR: number of headsets

o VR: number of headsets per segment

o VR: display penetration rates

o VR: display numbers

o VR: display values

AR market trends 81

o The dream of the consumer market

o The potential of AR markets

o What does the consumer want?

o Why does the consumer want?

o AR use cases

o AR use cases for consumers

o AR market segmentation

o Scenario expectations for consumers

o For the consumer: performance

o For the consumer: form factor

o For the consumer: price point

o Consumer paths

o Optics for the consumer

o Display engines for the consumer

o How about the car?

o Beyond everything with holography

o Conclusions

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TABLE OF CONTENTS

Part 2/3

AR industry 120

o OEM leaders and followers for the future?

o LCOS players

o MEMS based solution players

o OLED-on-Si players

o Strategy of OLED-on-Si companies

o MicroLED players

o Strategy of microLED companies

o Waveguide players

o Ecosystem analysis

o Tentative DOE waveguide supply chain

o Ecosystem analysis

o Apple as an enabler

o The move towards HOEs

o Company profiles

o Collaborations

o A word about regulations

AR technology trends 161

o The different elements of an AR headset

o Where are the critical parts

o Optics – technology description

o Regular optics

o Waveguides

o DOEs

o Waveguides comparison

o Display engines – technology description

o Comparison table, pros & cons for AR applications

o LCOS overview

o DLP overview

o OLED-on-Si overview

o MicroLED overview

o Optics and display engines compatibilities

o Technologies roadmaps

o Roadmaps for technologies

o Roadmaps for optics

o Roadmaps for display engines

o Waveguide optics – manufacturing and materials

o DOEs – material requirement

o DOEs – an introduction to nanoimprint lithography

o DOEs – manufacturing process concept

o DOEs – manufacturing challenges

o DOEs – glass supply

o DOEs – competitive analysis

o HOEs – material requirement

o HOEs – manufacturing process concept

o HOEs – high volume manufacturing

o The importance of optics – a Magic Leap One teardown

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TABLE OF CONTENTS

Part 3/3

AR outlook 218

VR market trends 220

o Technologies to consider in a VR headset

o VR use cases

o A market more balanced than AR

o Different markets – applications and technology requirements

o Visual fidelity trends – improving the PPD

o Visual fidelity trends – improving the FOV

o Visual fidelity trends – improving the refresh rate

o General trend – going standalone

o Going standalone – the implications on displays

o Going standalone – the implications on optics

o Going standalone – the future of displays

o Going standalone – really standalone?

o Future development trends to address the market

o Future development paths for general adoption?

o The video-see-through VR – an AR mix

VR Industry 241

o Regular display players

o OLED-on-Si players

o MicroLED players

o MicroLED ecosystem

o The dominating players

o The traditional videogame console players’ strategy

o The PC players

o Display makers strategy – JDI

o Display makers strategy – AUO

o Display makers strategy – SDC

o Pico versus Oculus in the professional field

VR Technology trends 253

o Technology description

o A global system to consider

o FOV

o Pixel density

o Persistence

o Technology development paths

o Persistence

o Reaching the eye physiology

o Tracking the eye

o VAC

VR outlook 287

Related reports

About Yole Développement

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AMOLED: Active Matrix OLED

AR: Augmented Reality

BLU: Back Lighting Unit

CF LCOS: Color Filter LCOS

CG: Computer Generated

CMOS: Complementary Metal Oxide Semiconductor

CNS: Central Nervous System

DLP: Digital Light Processing

DMD: Digital Micromirror Device

DOE: Diffractive Optical Element

DOF: Degrees Of Freedom

DSLR: Digital Single Lens Reflex

FFR: Fixed Foveated Rendering

FOV: Field Of View

FSC LCOS: Field Sequential Color LCOS

FSD: Fiber Scanning Display

GVS: Galvanic Vestibular Simulation

HDR: High Dynamic Range

HMD: Head mounted Device/Display

HOE: Holographic Optical Element

HRI: High Refractive Index

HVS: Human Vision System

IMU: Inertial measurement Unit

IPD: Inter Pupillary Distance

LCD: Liquid Crystal Display

LCOS: Liquid Crystal on Silicon

LED: (Inorganic) Light Emitting Diode

MR: Mixed Reality

MSRP: Manufacturer’s Suggested Retail Price

NIL: Nano Imprint Lithography

NIR: Near InfraRed

OEM: Original Equipment Manufacturer

OLED: Organic Light Emitting diode

PBS: Polarizing Beam Splitter

PPD: Pixel Per Degree

PPI: Pixel Per Inch

PWM: Pulse Width Modulation

RGB: Red-Green-Blue

RIE: Reactive Ion Etching

RMLCM: Reactive Monomer Liquid Crystal Mix

ROE: Reflective Optical Element

SDE: Screen door Effect

SPAD: Single Photon Avalanche Diode

SRG: Surface Relief Grating

TFT: Thin Film Transistor

TIR: Total Internal Reflection

TOF: Time Of Flight

UHD: Ultra High Definition

VAC: Vergence Accommodation Conflict

VR: Virtual Reality

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ACRONYMS

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ACCEPTED DEFINITIONS FOR AR, MR & VR

• A 100% artificial, computer-generated

simulation or display of a real-life

environment that immerses the users by

making them feel like they are experiencing

the simulated reality firsthand.

• VR requires a fully enclosed head mounted

display (HMD) that visually isolates the user

from the outside world. For a realistic and

immersive experience, the system should

offer a field of view and resolution closely

matching the capabilities of the human eye.

• Overlays simple information and computer-

generated (CG) images onto the real

world.

• There is little to no interaction between

the CG content and the user’s

environment.

• The display must not obstruct the real

world. It has to compete with ambient light

to generate digital information with similar

brightness as that seen in the real world.

Resolution and field of view requirements

(FOV) vary with the application.

• Overlays complex, often 3D computer-

generated (CG) images onto the real world.

• The CG content can interact with the

environment (objects in the room, wall,

vehicle, etc.). The system uses multiple

sensors to create a real time 3D modeling of

the environment and the CG content adapts

in real time to any change.

• Display requirement is similar to AR. A larger

FOV is usually desirable. Improved resolution

and brightness are likewise expected.

[1] This report focuses on Head Mounted Devices (HMDs) though both AR and MR can also be experienced on a hand-held cell phone, tablet (e.g.: “Pokémon Go”) and even in cars (HUDs).

Virtual Reality (VR)Mixed Reality (MR) [1]Augmented Reality (AR) [1]

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Zine Bouhamri, PhD

As a Technology & Market Analyst, Displays, Zine Bouhamri, PhD is a member of the Photonics, Sensing & Display division at Yole Développement(Yole). Zine manages the day to day production of technology & market reports, as well as custom consulting projects. He is also deeply involved in the business development of the Displays unit activities at Yole.

Previously, Zine was in charge of numerous R&D programs at Aledia. During more than three years, he developed strong technical expertise as well as a detailed understanding of the display industry.

Zine is author and co-author of several papers and patents. Zine Bouhamri holds an Electronics Engineering Degree from the National Polytechnic Institute of Grenoble (France), one from the Politecnico di Torino (Italy), and a Ph.D. in RF & Optoelectronics from Grenoble University (France).

Contact: [email protected]

Pierrick Boulay

As part of the Photonics, Sensing & Display division at Yole Développement (Yole), Pierrick Boulay works as Market and Technology Analyst in the fields of Solid State Lighting and Lighting Systems to carry out technical, economic and marketing analysis. Pierrick has authored several reports and custom analysis dedicated to topics such as general lighting, automotive lighting, LiDAR, IR LEDs, UV LEDs and VCSELs.

Prior to Yole, Pierrick has worked in several companies where he developed his knowledge on general lighting and on automotive lighting. In the past, he has mostly worked in R&D department for LED lighting applications. Pierrick holds a master degree in Electronics (ESEO – Angers, France).

Contact: [email protected]

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ABOUT THE AUTHORS

Biographies & contacts

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SCOPE OF THE REPORT (1/3)

Delves in detail into what drives the possible adoption of AR & VR: displays and optics, through technology, industry, markets and applications.

This report is a comprehensive survey of the use of Augmented Reality and Virtual Reality in headsets,providing an in-depth understanding of the displays and associated optical vision systems.

Provide an understanding of the current status of AR and VR in general, and more detail regarding displayand optical technologies:

• What are AR and VR? What are the key benefits? How do display considerations differ in this context? Whyare optics mixed into the display equation?

• What are the roadblocks? How challenging are they? What are the roadmaps to overcome them?

• Detailed analysis of key technological nodes: field of view, pixel density, persistence, étendue, opticalcombiner manufacturing, holographic and diffractive elements, microdisplay sources, efficiency, etc.

This report also reviews the global AR and VR industries and provides insights into the possible evolutionand the necessary technological developments for consumer adoption. The technological roadmapprovided herein will enable analysis by the reader.

For each application, market metrics are provided for displays and optics.

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SCOPE OF THE REPORT (2/3)

This report covers market forecasts, players, technologies and market trends for the following:

As the industry is mostly tracking the efforts on AR hardware, this report will mostly focus on AR.

Your needs go

further than this

report?

Contact us for a custom study:

AR smartglasses AR headsets Tethered VR headsets Untethered VR headsets

Focus on displays and optics! Little to no computing or sensing details.

Jade Bird Display Digilens WaveOptics

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SCOPE OF THE REPORT (3/3)

Of course an AR headset is composed of several different parts, but the focus will be optics and display engines.

• Mainframe

• IC components (computing)

• Sensors (SLAM, IMU, eye-tracking)

• Power management

• Optical engines

• etc.• Optics

• Display engines

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METHODOLOGIES & DEFINITIONS

Market

Volume (in Munits)

ASP (in $)

Revenue (in $M)

Yole’s market forecast model is based on the matching of several sources:

Information

Aggregation

Preexisting

information

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REPORT METHODOLOGY

Market segmentation methodology

Market forecast methodology

Technology analysis methodology

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HOW WE DO IT

INFORMATION

SYNTHESIS

Definition of the

topic of

investigation

For syndicated report

Topic of investigation defined

by Yole

For custom analysis

Topic of investigation defined

by the customer (with Yole)

INFORMATION

COLLECTION

(ie raw data)

Direct discussions /

interviews with key

industries in the

domain and along every

step of the supply chain

INFORMATION

ANALYSIS AND

PROCESSING

Feedback loop with the

industry to fine-tune

our analysis

Final analysis

Industry

landscape

Market

landscape

Technology

landscape

Application

landscape

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4th Dimension Displays, Agc, Akonia Holographics, Aledia, Apple, Auo, Avegant, Bayer, Boe, Bosch, Canon, Castar, Ceres Holographics, Colour Holographic, Compound

Photonics, Corning, Daqri, Dell, Digilens, Dispelix, Emagin, Etri, Evg, Eyefluence, Facebook, Finisar, Fove, Fraunhofer, Glo, Google, Hamamatsu, Himax, Holoeye, Hoya, Hp, Htc, Idealens, Inkron, Intel, Itri, Jade Bird Display, Jdi, Konica Minolta, Kopin, Leap

Motion, Lenovo, Letinar, Lg, Limbak, Linq, Liteon, Luminit, Lumiode, Lumus, Magic Leap, Meta, Micledi, Microoled, Microsoft, Mira, Molecular Imprints, Nintendo, Nvidia,

Oakley, Oculus, Ohara, Olightek, Optinvent, Ostendo, Osterhout Design Group, Pico, Pimax, Playnitride, Plessey Semiconductors, Pupil Labs, Qualcomm, Raontech, Razer,

Rockwell Collins, Samsung, Schott, Sega, Seiko Epson, Sony, Starbreeze, Sumita, Syndiant, Texas Instruments, Theeyetribe, Tooz, Valve, Varjo, Vuzix, Waveoptics, Young

Optics and more.

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COMPANIES CITED IN THIS REPORT

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• A battle between DOE & HOE

• MicroLED is being awaited by everyone

• Cost and form factor remain issues for adoption

• Magic Leap has underdelivered

• Standalone VR is the future and reception has been good

• LCD has a good penetration in VR

• Technical progress on optics has been faster than expected

• Expectations before 2023 were a bit too optimistic

• There may be an earlier market for lower quality AR headsets (performance)

• Consumer adoption of VR is not as fast as anticipated, the chasm has not been crossed

• Small form factor has some traction

WHAT WE GOT RIGHT, WHAT WE GOT WRONG

AR is on-track, VR is going slower than anticipated

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AR, VR, AR/VR?

There is no AR/VR.

There is AR. There is VR.

There is a potential link between them.

And that is it.

• Even though the industry continuously communicates on “AR/VR”, this makes very little sense.

• As will be illustrated, these two fields are totally different. Whether it is the technical challenges, the applications, themarkets addressed and so on, the distinctions are vast. It would be as if one said “cars/drones”.

Displays and Optics for AR & VR 2020 | Sample | www.yole.fr | ©2020

I would now like to address

the “AR/VR” market…

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THE IMPORTANCE OF DISPLAYS AND OPTICS

As we are used to looking at high quality images, we cannot display a poor image in front of the eye of the consumer.

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• We are all children of the flat panel display industry,in the sense that we are used to been surroundedby top-notch high-quality displays (TVs, smartphonesand so on). Remember that most of our sensorialcues come from the vision.

• Therefore, displays and optics are of utmostimportance in the context of headsets: one cannotaccept the idea of having something that does notdeliver a proper image when it is right in front oftheir eyes.

• For that reason, most of the R&D effort has beenon displays and optics, hence our focus here.

(Illustration: article headline from extremetech.com, Aug 2019)

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VR USE CASES

Main use cases for VR headsets

There are already many use cases for consumers, while professional use of VR is more limited.

Professionals

Consumers

Education

• xxx

• xxx

Healthcare

Industry

• Engineering

• xxx

• xxx

• Pain management

• Video games

• xxx

• xxx

• xxx

• xxx

• xxx

• xxx

• xxx

• xxx

• Music concertsEntertainment

• xxx

• xxx

• Medical education

• xxx

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AR USE CASES – THE APPLICATION MATRIX

A basic application segmentation: the consumer, and the rest

Many use cases already exist for industrial applications, whereas the killer use case still has to be found for consumers.

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Consumers

Education

• Job training

• xxx

• xxx

xxx

• xxx

LogisticsHealthcare

Manufacturing

• Assembly

• xxx

• xxx

• xxx

• xxx

• Patient

xxx

• xxx

• xxx

xxx

• xxx

xxx

• xxx

xxx

• xxx

xxx

• xxx

xxx

• xxx

• Tourist guide?

• xxx

• xxx

• Personal trainer?

• xxx

Professionals

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WHAT DOES THE CONSUMER WANT?

It is crystal clear what the consumer wants: as an AR headset is on their face and to be used wherever, it needs to be stylish.

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• What is for sure is that the industry is asking the consumer to put something on their face. This becomes part ofown’s identity, so the design criteria will be of utmost importance: nobody wants to be seen in the street wearing abulky headset.

• On top of that, it will need to provide a compelling experience, and low visual quality will not be acceptable. Or, if itis, it will be at a very low price point.

• The value price point will be important too. When a typical smartphone can cost more than $1,000 while stillproviding lots of value, what can be the acceptable price for such a headset?

Stylish

Performant

Low cost

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WHY DOES THE CONSUMER WANT?

It is much less obvious what the use case for the consumer could be?

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• The use cases for professionals are clearly defined and have been known for years now: logistics, safety, repair,training, treatment, education, etc.

• However, there is huge uncertainty on the consumer use case: why would someone put something on their head?What value can it bring them? Gaming? Tourism? Something more compelling?

Professionals Consumers

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inside

THE TENTATIVE LINK DRAWN BETWEEN VR & AR

We can imagine it, it’s far-fetched in terms of performance and consumer expectation, but it could be a trend.

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AUGMENTED REALITY

VIRTUAL REALITY

can’t see around: dangerous!

heavy: uncomfortable!

Kind of a VR use case…

…in AR HMD, safety/comfort.

Trade off between cases: performance is not so good in terms of VR nor in terms of AR.

Alternative: video-see through “VR/AR” but loss of comfort.

still too bulky to wear outside

poor performance outside

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Professional

dominates

Expansion in consumer market

Acceptable form factor,

better performance

Use case

breakthrough

Waveguide-like early pilot line

products with customers

In-house bulky headsets?

Smaller form factor headsets

2019Professional

markets dominate

<1M units

2021Small form factor

Increased consumer awareness

~1M units

Consumer market takeoff

Major OEMs getting into

the game

2023

AR MARKET TREND – SCENARIO EXPECTATIONS FOR CONSUMERS

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OPTICS AND DISPLAY ENGINE COMPATIBILITIES

Roadmaps for technologies

Roadmaps are quite simple to follow: improve weak points to compete where the competing technologies have a strong point.

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OLED-on-Si1x MEMS

scanLCOS DLP MicroLED Inconvenience

Focus area

Roadmaps

DOE X X X X X

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

HOE X X X X X

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

ROE X X X X X

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Inconvenience

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Focus area

Roadmaps

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

XXX?

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OPTICS AND DISPLAY ENGINE COMPATIBILITIES

Roadmaps for optics

All technologies are striving for reduced form factor, lower cost and higher performance.

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xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

DOE

HOE

ROE

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

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• 2021 will be the yearwhen the first- generationheadsets with lowerperformance dominate.

• 2023 is expected to be thetipping point when theOEMs jump in with highvolumes.

• We expect them to createa compelling valueproposition to convincethe consumer.

• Will Apple be ready tomake a move by this time?

AR FORECAST

Number of headsets

2023 is expected to be the tipping point.

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• Many companies areinvolved in the DOEbusiness (SRG based),so much so that itoverly dominates in theearly stages (thoughnever forget thatvolumes are very low).

• With the arrival ofOEMs, HOEs will gainmarket thanks to Applepossibly getting in thegame. Other HOEmanufacturers are alsoexpected to benefitfrom increased marketdemand.

AR FORECAST

Optics technologies distribution

With many people working on DOEs, we expect this technology to dominate as competition will be beneficial.

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• Total revenue for HRIwafers designed for ARheadsets is expected toreach a billion dollarsannually by 2026,providing the OEMssucceed in addressingthe consumer market.

• As a reference, here aresome 2019 revenuedata:

• ~xxxB$

• ~xxxB$

• ~xxxB$

• ~xxxB$

AR FORECAST

DOEs and HOEs, value of high refractive index glass wafers

Values are expected to be high, hence the intense effort by wafer suppliers to push this industry.

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• Incumbent technologies will be considered for lack of better choice, waiting for themicroLED opportunity to happen. DLP retains a higher share as it has brightness andcontrast advantages over LCOS. OLED-on-Si will be used for first-generation headsets.

AR FORECAST

Display engine penetration rates

MEMS, mostly DLP, dominates the microdisplay market for AR applications due to its brightness advantage over LCOS. MicroLEDs threaten this.

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AR FORECAST

Display engine revenue

MicroLEDs will still be expensive until they mature. This will not slow adoption down too significantly because of the differentiation they bring.

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Contact our

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information

MicroLED Displays 2019

3D Imaging & Sensing2020

MicroLED Displays –Intellectual Property Status &

Landscape 2020

Status of the MEMS Industry 2019

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Yole Développement & System Plus Consulting

Magic Leap One –Augmented Reality

Headset

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