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2016-2020 TECHNAVIO.COM SAMPLE - GLOBAL VIRTUAL RETINAL DISPLAY MARKET

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Page 1: SAMPLE - GLOBAL VIRTUAL RETINAL DISPLAY … 2 SAMPLE -GLOBAL VIRTUAL RETINAL DISPLAY MARKET 2016 2020 AMERICAS CANADA 36 Toronto Street, #505 Toronto, ON M5C 2C5 americas@technavio.com

2016-2020

TECHNAVIO.COM

SAMPLE - GLOBAL VIRTUAL RETINAL DISPLAY MARKET

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AMERICAS

CANADA 36 Toronto Street, #505 Toronto, ON M5C 2C5 [email protected]

UNITED STATES 110 E Schiller Street, #208 Chicago, IL 60126 [email protected]

EUROPE, MIDDLE EAST, AFRICA

UNITED KINGDOM 8 Wimpole Street London W1G 9SP [email protected]

ASIA-PACIFIC

INDIA First Floor, Left Wing Embassy Signet, Cessna Business Park Kadubeesanahalli Bangalore, Karnataka 560 103 [email protected]

CHINA Tianchen Building, Room 1308 12 Chaoyangmenwai Street Chaoyang District, Beijing [email protected]

ALL MEDIA INQUIRIES

[email protected]

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Table of contents

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List of exhibits

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2015 MARKET SIZE

$XXX

2016 MARKET GROWTH RATE

XXX%

2020 MARKET SIZE

$XXX

2020 MARKET GROWTH RATE

XXX%

Highlights

Virtual retinal display (VRD) is expected to gain traction in the market. VRDs are

increasingly used in head mounted displays (HMDs). The display is projected

directly into the users' eyes. It has high potential to replace other display

technologies such as liquid crystal display (LCD), light-emitting diode (LED), and

active matrix organic LED (AMOLED) as it consumes less power and has high

clarity.

Virtual reality (VR)-based gaming is gaining high popularity in the market. Hence,

VR device manufacturers such as Oculus, Samsung, and Sony might adopt VRD

instead of display with screens. However, start-ups such as Avegant might find it

difficult to make a noticeable presence in the market as its product Avegant Glyph

is expensive and does not have head-tracking or eye-tracking option.

The military is expected to be the major end-user segment after individual

consumers, as VRD technology is increasingly used in drones.

PART 01: Executive summary

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Market overview

This report covers the present scenario and the growth prospects of the global VRD

market for the period 2016-2020. To calculate the market size, the report considers

revenue generated from shipment of VRD devices for VR and augmented reality (AR)

applications. VRD is a screenless display technology and is currently used only in

HMDs. The report does not consider the revenue generated by the shipment of VR and

AR headsets, which are not based on VRD technology.

Definitions

VRD

VRD, also known as a retinal projector or retinal scan display, is a display technology

that is directly focused onto the retina of the eye. The user can see a conventional

display floating in space.

VR

VR is a 3D, computer generated environment that engages the user in the virtual

world. The user can interact with the virtual objects and can also execute a series of

actions.

AR

AR technology helps in blending the digital content with the physical world. With AR

technology, computer-generated images of the real-world objects are displayed in the

user's field of vision along with relevant information. The user can scan the physical

real-world environment and get an enhanced or augmented experience by adding

virtual computer-generated information.

Base year

Throughout this report, 2015 is considered as the base year. All calculations involving

quantitative data are based on 2015. The values represented in the report are the

actual values for 2015 whereas those for 2016-2020 have been estimated.

Standard currency conversion rates

Throughout the report, the USD is the standard currency unit for all calculations. In

certain sections, other currencies are converted to USD using the annual average

currency conversion rate (January 1 to December 31, 2015).

PART 02: Scope of the report

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Currency conversion rates

Currency 2013 2014 2015

USD/EUR XXX XXX XXX

USD/GBP XXX XXX XXX

USD/CAD XXX XXX XXX

USD/AUD XXX XXX XXX

USD/JPY XXX XXX XXX

USD/CNY XXX XXX XXX

Source: Technavio

Geographical segmentation

Geographical segmentation is determined based on the location of the end-users. The

regions covered are the Americas, Asia-Pacific (APAC), and Europe, the Middle East,

and Africa (EMEA).

Key regions

Americas APAC EMEA

Argentina

Brazil

Canada

Colombia

Mexico

US

Venezuela

Australia

China

India

Indonesia

Iran

Japan

Malaysia

Pakistan

The Philippines

South Korea

Taiwan

Austria

Bahrain

Belgium

The Czech Republic

France

Germany

Hungary

Italy

Kuwait

Oman

Poland

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Americas APAC EMEA

Thailand Portugal

Qatar

Romania

Russia

Saudi Arabia

Slovakia

Slovenia

Serbia

Spain

Sweden

Turkey

UK

Ukraine

Uzbekistan

Source: Technavio

Vendor Segmentation

This report provides list of vendors, who are active in producing VRD based devices

and VRD technology. It includes vendors across all geographical regions and

segments. The vendors are identified based on the revenue and market dominance in

terms of experience, product portfolio, geographical presence, financial condition,

R&D, and customer base.

Top-vendor offerings

Product offerings

Company Products offered

Avegant Avegant Glyph

Source: Technavio

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Research methodology

This Technavio report is based on the synthesis, analysis, and interpretation of

information about the global VRD market collected from specialized sources.

Technavio analysts have derived insights using a mix of primary and secondary

research with an aim to provide a holistic picture of the market.

Economic indicators

Technavio has conducted a detailed study of global economic conditions and other

economic indicators to assess their impact on current global VRD market conditions

and to make informed predictions about future market scenarios.

PART 03: Market research methodology Primary research

• Vendor briefings • Interviews with industry experts

and centers of influence • Telephone and online surveys

Qualitative analysis • Drivers, challenges, and trends • Vendor analysis

Top-down approach

Secondary research

• Proprietary tools and databases • Company reports and publications • Webinars and podcasts • Industry journals and publications

Quantitative analysis • Market size and market share • Statistical models

Bottom-up approach

Microeconomic indicators

Macroeconomic indicators

Mesoeconomic indicators

Data collection and analysis

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Key market highlights

Key customer segments

Individual consumers

Key market challenges

Lack of awareness of VRD

Challenge 2

Challenge 3

Key market drivers

Advantages over other display

technologies

Driver 2

Driver 3

Key market trends

Increase in crowdfunding

Trend 2

Trend 3

VRD, also called as retinal scan display (RSD), is a display technology that uses power

laser beam as a light source, which is projected onto the retina of the user. The VRD

scans the images on the retina of the user to display images in real-time.

The overall display industry can be categorized into two segments:

Display with screen

Screenless display

PART 04: Introduction

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Display with screen

The displays on devices such as kiosks, portable display devices, TVs, monitors,

laptops, and smartphones are one of their most significant components, forming a

platform for user-interface. Display design and technological features enhance user

experience. Rapid advances in technology in the display industry go hand-in-hand with

advances in the electronics industry.

Types of display

Source: Technavio

Cathode ray tube (CRT) display

CRT is a vacuum tube, which helps in displaying image by using one or more electron

guns and a phosphorescent screen. To create images, the electron beams are

accelerated, modulated, and deflected onto the screen. The images may represent

Types of display

Display with screen

CRT

FPD

PDP

VFD

FED

ELD

LED

OLED

AMOLED

PMOLED

LCD

AMLCD

Screenless display

Visual display

Synaptic interface

Retinal direct

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pictures (television and computer monitor), electrical waveforms (oscilloscope), radar

targets, or others.

Flat panel display (FPD)

FPDs are based on electronic viewing technology, which is used to enable people to

see content such as moving images, still images, text, or other visual material in a

range of entertainment, consumer electronics, and many types of transportation,

medical, and industrial equipment. Different types of FPDs are:

Plasma display (PDP)

PDP is a type of FPD consisting of electrically charged ionized gases called plasmas.

They are mainly used in large TV displays (30 inches (76 cm) or more).

Vacuum fluorescent display (VFD)

The principle behind VFD operation is cathodoluminescence, which is similar to that of

a CRT. But VFD operates at much lower voltages. The phosphor-coated anode in each

tube collides with the electrons emitted from the cathode filament. It also has a mesh

control grid in each tube of VFD, because of which it is also called as triode vacuum

tube. VFD is commonly used as a display in consumer-electronics equipment such as

car radios, video cassette recorders, and microwave ovens.

Field emission display (FED)

FED uses large-area field electron emission sources to generate electrons that fall on

the colored phosphor to produce a color image. Generally, FED consists of a matrix of

CRT, with each tube producing a single sub-pixel, grouped in threes to form red-green-

blue (RGB) pixels.

Electroluminescent display (ELD)

ELD is a type of FPD formed by inserting a layer of electroluminescent material such

as gallium arsenide (GaAs) between two layers of conductors.

LED

An LED display uses an array of LEDs as pixels for a video display.

OLED

The emissive electroluminescent layer of organic compound emits a light in response

to an electric current in OLED.

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AMOLED

AMOLED is a display technology that is popular in laptops, smartwatches, and

televisions. A specific type of thin-film display technology with organic compounds form

the electroluminescent material.

Passive-matrix OLED (PMOLED)

PMOLED relates to the way the display is controlled.

LCD

LCD uses the light-modulating properties of liquid crystals. Light is not emitted by the

liquid crystals directly.

Active matrix LCD (AMLCD)

AMLCD has features like low weight, high image quality, wide color gamut, and

response time. As a result, it is considered for high-resolution TVs, computer monitors,

notebooks, tablets, and smartphones with an LCD screen.

The display industry has undergone many transitions over the years in terms of

technology and applications. A wide array of display technologies is now available in

the market, increasing the number of applications used for these displays. The display

technology has advanced from CRT TVs, which are over 100 years old, to OLEDs,

which are currently popular in the market.

Flexible displays

Currently, flexible displays are based on OLED technology because of its emissive

characteristics. It is a dominant technology for flexible displays. Foldable or flexible

OLEDs are made up of substrates that are either plastic or flexible metallic foils.

Flexible OLEDs are light weight and have reduced thickness. Flexible displays can

reduce the breakage and repair issues associated with the electronic devices.

As LCD is a non-emissive technology and cannot operate without backlight, it is not

feasible for developing flexible displays and related products. However, few

enhancements with backlights have taken place, which can help develop LCD-based

flexible displays. But these enhancements are not yet commercialized and thus, the

penetration of LCDs in flexible displays is negligible.

Screenless display

In the field of computer-enhanced technologies, the screenless display is an evolving

technology. It will be one of the greatest technological advances over the years. There

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are many time-to-time patents being introduced by researchers on this technology. The

main aim of the screenless display is to transmit the information without any screen or

projector. Screenless computing systems are categorized into three main groups:

Visual display

Visual image screenless display includes any screenless image that the eye can

observe. Hologram is the most common example for visual image screenless display.

Hologram

In telecommunications, holograms were used as a substitute to screens. Holograms

could either be transmitted directly or stored in various storage devices such as

holodisks. This storage device can be connected with a holoprojector in order to

access the stored image, for example, AR goggles.

In digital holography, a charge-coupled device (CCD) camera is used to record a digital

hologram. The information is transferred to a computer and analyzed. As a result, 3D

images are formed, which are used to examine and evaluate the objects with accuracy.

In general, the CCD camera is used to produce realistic 3D images of 2D objects.

Digital holography is gaining traction in the healthcare and retail sectors. Currently, the

medical, education, and banking sectors are the major revenue generators for the

market. As the brick-and-mortar stores are looking for innovative ways to retain

customers, the digital holographic displays are boosting the retail sector by offering

unique and engaging advertisements.

The automotive, aerospace, and gaming are the potential sectors that will drive the

market in the future. The global digital holography market is expected to grow at a

CAGR of XXX% during the forecast period.

A 3D information or an object is obtained through a digital hologram. Digital holograms

have several advantages when compared to a conventional optical holography:

Strong anti-disturb property

Easy to modify

Difficult to imitate

Can be multiplexed

Can act as anti-counterfeiting identifiers

Easy to create content and cost-effective

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The main advantage of digital holography is that one can view 3D projections in thin air

without the use of 3D glasses. However, there are limitations regarding the picture

quality. Vendors are trying to eliminate such limitations and commercialize this

technology at a large scale. In the near future, digital holography can be used for many

purposes. For instance, a 3D projected person can welcome any customer walking into

a restaurant or a miniature-sized 3D projected avatar can pop up on the dining table

and take the menu ordered. Also, smartphone or tablet users will have their own 3D

holographic avatar that can remind about the meetings, exercises, or any event. with

digitization, digital holography might be integrated with haptics technology and can

revolutionize online marketing. For example, any product from an e-commerce website

can be projected into thin air in 3D by using digital holography, and by haptic

technology the user can touch the product without its actual presence.

The following exhibit represents new opportunities for the vendors to increase

awareness among customers. This can be considered as a unique proposition services

for their B2B customers in the market.

Digital holography opportunities in display industry

Source: Technavio

Digital holography

Works effectively

under sunlight

Optical clarity

High quality

Haptics

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Synaptic interface

In the synaptic interface, no screenless video light is used. Instead, the visual

information is directly transmitted to the brain by bypassing the eye. This system is yet

to be implemented in humans. The technology was implemented in a live horseshoe

crab, wherein the sample video signals were sent through the optic nerves of the crab

to its brain by using electronic cameras through the same method.

Retinal direct

In VRD, the images are directly projected onto the user's retina. It is different from

other visual image systems, as the light is not reflected from some intermediate object

onto the retina. Retinal direct systems give the user extreme privacy in public places,

as these systems pass light only into the retina of the viewer.

Market summary

Global VRD market

2015 2020

By revenue $XXX $XXX

Geographical segmentation

Americas $XXX $XXX

EMEA $XXX $XXX

APAC $XXX $XXX

Source: Technavio

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Market size and forecast

The global VRD market was valued at $XXX in 2015 and is expected to reach $XXX by

2020, growing at a CAGR of XXX% during the forecast period.

Global VRD market 2015-2020 ($)

Source: Technavio

Revenue generation from consumers is difficult to achieve because VRD adds very

little value to the users. The most common applications of VRD are gaming and

infotainment. It can be a useful device for watching movies while traveling or playing

video games by connecting it to Xbox, PlayStation, or PC. Lack of awareness among

the individual consumers will be a major setback to the VRD devices market. It can be

used as a substitute for current VR or AR display technologies; however, currently,

these devices have high penetration and recognition among individual consumers.

Hence, it will be difficult for the VRD devices to replace them in the next five years. In

addition, the current VRD devices are only capable of viewing while VR and AR

devices are capable of functions like head tracking and eye tracking. Incorporating

these functions in the current VRD devices is expected to take time. However, there is

a high possibility that VRD technology integrated into VR and AR devices can help

drive the global VRD market.

Potential applications of VRD where AR and VR devices are popular

The marketing and advertising sector is increasingly adopting AR technology. Print

media and publishing houses have also been using it in the form of quick response

(QR) codes that can be easily accessed by mobile device users. For marketers and

Revenue

PART 05: Market landscape

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advertisers, it is a great opportunity to attract more customers and increase interest in

products. Several brands have shown huge interest in using AR for promotion. In fact,

for most of these brands, AR-based advertising or promotion is mainly done not to

increase revenue, but to create product awareness.

Many industries, including service and maintenance, automotive, and logistics, use AR

technology to increase productivity. For instance, AR apps are used to replace printed

manuals, which can identify objects and give related information. The apps designed

for this sector are relatively expensive, as system integration is a challenging task. For

instance, designing an AR app to check fuel leakage might be easy, but the same app

should be capable of analyzing each and every part of an automobile to give complete

details to a user. Though the number of uses in this sector is currently low, the

potential for revenue generation is high.

The retail is one of the most promising sectors for mobile AR because of increased

interest in developing apps for their customers. Many large brands such as Converse,

IKEA, Maybelline, Nike, and others have rolled out several apps that have interested

their consumers. Future mobile AR apps can enable users to locate their favorite

stores and get an inside view of the location, along with information such as pricing

and stock availability. Retailers are spending heavily on AR apps that can attract

potential customers.

The healthcare sector has huge potential for AR. The sector is growing rapidly and is

increasing its spending on technology, so AR is expected to penetrate this sector.

Several uses have been demonstrated but have not yet commercialized.

The real estate sector has demonstrated the use of AR by providing apps to

consumers. Users can search for properties that are up for sale or rent from any

location, and also view the property through their mobile device. These apps can save

time and money for users.

Note: Information included in this sample are extracts of the full report.

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Advantages over other display technologies

VRD holds major advantages over other display technologies in terms of the following

factors:

Color range

Luminance and viewing modes

Contrast ratio

Power consumption

Color range

The hues produced by CRT and FPD produced is significantly lower than VRDs.

Miniature FPDs and CRTs can reflect only a small portion of the total palette of colors,

which is visible to the human eye.

Luminance and viewing modes

The range of energy incident at the corneal surface is 60 nW to 300 nW. This flexibility

of VRD allows producing images in fluctuating environments with clarity when

compared to conventional electronic displays, which do not transmit light energy in the

ideal range. As a result, conventional displays are preferred in a light-controlled

environments, as they are not clearly visible under bright ambient light conditions such

as outdoors.

Occluded and augmented are the two viewing modes in which VRD is generally used.

The outside environment is not visible in the occluded mode, only images generated by

the VRD are visible. VRD can join an image in the real world, allowing both occluded

and augmented to be seen at the same time in the augmented mode. VRD luminance

can be controlled in the augmented mode, allowing the user to see an image even

under outside ambient light conditions.

Contrast ratio

VRD brightness can be increased to high levels or decreased to minimal levels. This

leads to high contrast ratio, which is far higher than that of panel displays or

conventional CRT monitors.

Power consumption

Light energy is not efficiently converted to electrical energy in conventional displays.

Both CRTs and backlit FPDs utilize extensive power to produce radiant energy. This

leads to low brightness as more power is utilized for input. They use the majority of the

PART 06: Market drivers

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battery power in which they are incorporated. VRD technology carries virtually all of its

generated light onto the retina, leading to brighter display with minimum power

requirements (based on LED).

Note: Information included in this sample are extracts of the full report.

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Impact of drivers

Source: Technavio

PART 07: Impact of drivers

Drivers Impact on key customer Category

Advantages over other display technologies

Individual consumers

3

Driver 2

Individual consumers

3

Driver 3

Individual consumers

4

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Lack of awareness of VRD

The awareness of and knowledge about VRD is limited to a small customer base, as

Avegant Glyph is the only product that has been commercialized yet. VRD will take a

lot of time to gain attention among VR and AR device manufacturers. Also, it is priced

high when compared to other VR devices, which again will hinder its adoption and

popularity. Lack of features such as head tracking and eye tracking in this device will

also affect the penetration. This lack of awareness is preventing potential customers

from adopting products that are integrated with AR. Others are waiting for AR to reach

its maturity stage. Infrastructural issues also hinder the penetration rate.

Note: Information included in this sample are extracts of the full report.

PART 08: Market challenges

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Increase in crowdfunding

By the end of 2015, Avegant gained a funding of $XXX for their virtual retinal display

device through crowdfunding. Hangzhou Liaison Interactive Information Technology, a

Chinese mobile internet company, led the Series B round of funding. This shows that

there is continuous investment taking place in the consumer electronics sector and

thus, the market for VR is maturing. Many US-based consumer electronics companies

earned around $XXX from investors during the first half of 2015.

Successful initial public offering (IPO) start-ups such as Fitbit and GoPro as well as

Google's acquisition of Nest are proving that there is a great scope for smart

technologies in the market. It has now become easy for launching a hardware start-up

due to the presence of crowdfunding sites like Kickstarter and Indiegogo to test

prototypes.

Avegant has decided to use fresh funds to improve the design, for marketing and

accelerating the sales and distribution. Like Oculus Rift, Vuzix's iWear, and Dashbon's

Mask, Avegant makes headphones with an immersive video screen, which acts as a

portable movie theater. The Glyph does not use LED screen to display picture, instead

it utilizes two million small scale mirrors to reflect the picture specifically into the user's

eyes. The headset conforms for vision contrasts among clients and can play any

content from a smartphone or PC.

Magic Leap has not yet disclosed whether its product type is based on AR or VR

technology. It is likely to adopt MicroVision's VRD technology. The company has raised

$XXX through Series C funding. This investment was made by China's Alibaba, along

with existing investors—Google and Qualcomm Ventures. Other new investors in this

round include Warner Bros, Fidelity Investments, J.P. Morgan, Morgan Stanley, T.

Rowe Price, and Wellington Management.

Note: Information included in this sample are extracts of the full report.

PART 09: Market trends

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Competitive scenario

The global VRD market is at a nascent stage. There are not many vendors involved in

the market. MicroVision and Avegant are the only vendors that have gained recognition

in the market. Magic Leap is yet to release its product, and the product is likely to

adopt MicroVision's VRD technology. MicroVision also provides VRD technology to

other vendors. Avegant provides VRD-based devices. As VRD has a large number of

advantages such as high clarity and low power consumption over LCD and other

display technologies, VR and AR vendors might consider VRD instead of LCD or LED

for manufacturing VR and AR devices.

As of 2016, there are many start-ups and large companies planning to invest in the

development of AR technology. There are many emerging vendors in the market but

do not have a dominant position in the market, as the market is in its nascent stage of

development. This could change over the next few years, and some vendors can

establish themselves by taking over small companies.

Well-established technology companies such as Facebook, Google, HP, Intel,

Microsoft, and Qualcomm can become some of the major players in the market in the

future, as they are investing heavily in the development of VR and AR devices.

Facebook has already acquired Oculus Rift, an AR company. In the future, Facebook

users may be able to just point their camera at an individual to view a person’s profile.

Avegant

Avegant is a start-up, which received $XXX through three rounds from 10 investors. Its

last series B funding was of $XXX on August 21, 2015. It started shipping its product at

the end of 2015. In Avegant Glyph, a VRD device, the company used micromirror

arrays to create pixel-free images for applications such as VR and AR experience.

Avegant Glyph can be connected to devices with HDMI out port, which includes

smartphones, tablets, laptops, gaming console, TVs, and even drones. The high

popularity of other VR and AR devices, along with its high cost, will hinder the adoption

of Avegant Glyph.

MicroVision

MicroVision provides PicoP scanning technology, which is a virtual retinal display. It is

one of the first vendors to commercialize VRD-based devices. MicroVision funded HIL

to develop the first VRD-based device.

PART 10: Vendor landscape

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