From Technologies to Markets alphacoders : credit Photo Displays & optical vision systems for VR, AR & MR Sample July 2018 © 2018 OBJECTIVE OF THE REPORT Everything you need to know to get a grasp of VR & AR • This report is a comprehensive survey of Virtual Reality and Augmented Reality as headsets, providing the reader with a deep understanding of the displays and associated optical vision systems. • Understand the current status of VR and AR display and optical vision systems technologies: • What are they? What are the key benefits? How do display considerations differ in this context? Why are optical vision systems mixed in the equation? Deep • What are the roadblocks? How challenging are they? understanding of the • Detailed analysis of key technological nodes: field of view, pixel density, persistence, étendue, optical combiner manufacturing,holographicand diffractive elements,microdisplay sources technology, current status and prospects, • This report also reviews the global VR and AR industries and provides insights into the possible evolution and the roadblocks and necessary technological developments for consumer adoption. The technological roadmap provided herein will allow key players. the read to analyze those. • For each application, market metrics are detailed for displays and optical vision systems. • Also, an Intellectual Property (IP) analysis is presented in order for the reader to better understand the patent landscape related to VR and AR. Displays & optical vision systems for VR, AR & MR | Sample | 2 TABLE OF CONTENTS Part 1/4 Executive Summary P3 Virtual Reality – Persistence P67 o Introduction P68 Introduction P7 o Refresh rate P69 o Sample-and-hold structures introduction P70 Virtual Reality – Introduction P26 o Sample-and-hold structures issues P71 Virtual Reality – FOV P31 o Low persistence, concept P74 o Introduction P32 o Low persistence, challenges P75 o Basic of lenses P34 o Low persistence, implementation P77 o Regular lenses vs. Fresnel lenses P41 o LCD versus OLED P79 o Trade-off in lenses’ choice P42 Virtual Reality – The display technology of choice P83 o FOV in commercial VR HMDs P43 o LCD versus OLED P84 o The dilemma to simply increase FOV P44 o MicroLEDs P86 o Alternatives to increase FOV P45 Virtual Reality – Sensorial challenges P97 o The cost of increasing FOV P47 Virtual Reality – Trends for future development P112 Virtual Reality – Pixel Density P48 o Overview P113 o Introduction P49 o Understanding eye physiology P114 o Common metrics P50 o The 60PPD cost on hardware P115 o PPI and PPD in VR HMDs P52 o Foveated rendering P116 o Consequences of low pixel density P54 o Color rendering P125 o Mitigating aliasing and screen door effect P56 o Different generations for different applications P127 o Display technologies P61 Virtual Reality – Display and optical vision system markets P128 o Manufacturing challenges for increasing pixel density P63 o OLED-on-Silicon and the display size limit P65 Displays & optical vision systems for VR, AR & MR | Sample | 3 TABLE OF CONTENTS Part 1/4 Executive Summary P3 Virtual Reality – Persistence P67 o Introduction P68 Introduction P7 o Refresh rate P69 o Sample-and-hold structures introduction P70 Virtual Reality – Introduction P26 o Sample-and-hold structures issues P71 Virtual Reality – FOV P31 o Low persistence, concept P74 o Introduction P32 o Low persistence, challenges P75 o Basic of lenses P34 o Low persistence, implementation P77 o Regular lenses vs. Fresnel lenses P41 o LCD versus OLED P79 o Trade-off in lenses’ choice P42 Virtual Reality – The display technology of choice P83 o FOV in commercial VR HMDs P43 o LCD versus OLED P84 o The dilemma to simply increase FOV P44 o MicroLEDs P86 o Alternatives to increase FOV P45 Virtual Reality – Sensorial challenges P97 o The cost of increasing FOV P47 Virtual Reality – Trends for future development P112 Virtual Reality – Pixel Density P48 o Overview P113 o Introduction P49 o Understanding eye physiology P114 o Common metrics P50 o The 60PPD cost on hardware P115 o PPI and PPD in VR HMDs P52 o Foveated rendering P116 o Consequences of low pixel density P54 o Color rendering P125 o Mitigating aliasing and screen door effect P56 o Different generations for different applications P127 o Display technologies P61 Virtual Reality – Display and optical vision system markets P128 o Manufacturing challenges for increasing pixel density P63 o OLED-on-Silicon and the display size limit P65 Displays & optical vision systems for VR, AR & MR | Sample | 4 TABLE OF CONTENTS Part 2/4 Augmented Reality – Performances, challenges and trends P135 o OLED-on-Silicon technology P167 o AR requirements P136 o Overview P168 Introduction to paradigms for display and optics in AR P137 o Applications P169 o Immersion and superposition of virtual data on real world P138 o The differences with regular OLED technology P170 o The projection paradigm P141 o Manufacturing and way of utilization P171 o The user’s needs P142 o Mapping of players P172 o Display and optics dependence P143 o OLED-on-Si standing versus LCOS and DLP P173 Display engine technologies P145 o The market share against the LCOS and DLP competitionP174 o Overview P146 o MicroLED technology P175 o LCOS technology P151 o Overview P176 o Overview P152 o The MicroLED concept P177 o Applications P153 o The display assembly P178 o Manufacturing and way of utilization P154 o The MicroLED microdisplay P179 o Color management P155 o Applications P180 o Comparison between LCOS and regular LCD P156 o Application roadmap P181 o The players at hand P157 o Mapping of players P182 o Mapping of players P158 o A credible alternative to LCOS, DLP and OLED-on-Si P183 o Market size for AR P159 o What is happening in the short term? P184 o DLP technology P160 o Miscellaneous technologies P185 o Overview P161 o Smartphone technology used in AR HMDs P186 o Applications P162 o Fiber scanning display technology P187 o Manufacturing and way of utilization P163 o Light field technology P189 o Mapping of players P164 o A credible alternative to LCOS, DLP and OLED-on-Si P183 o The comparison between DLP and LCOS P165 o What is happening in the short term? P184 o The market share between DLP and LCOS P166 o Display technologies conclusions and forecasts P181 Displays & optical vision systems for VR, AR & MR | Sample | 5 TABLE OF CONTENTS Part 3/4 Optical Vision Systems for AR P196 o Introduction to optics for AR P197 o SWOT analysis P251 o The question of optics for AR P198 o Holographic element combiners P252 o The AR optical vision system P200 o The patenting activity for HOE P253 o Imaging optics P201 o Disruption to diffractive element combiners P257 o Exit pupil expansion and eye physiology P202 o Princples P258 o The étendue P203 o Material requirements P260 o Coming up to optics P207 o Transmission or reflection holograms P263 o Regular combiners P208 o Example of volume holographic material P264 o Flat combiners P210 o Alternative volume holographic material P265 o Curved combiners P212 o The stacking of waveguides P266 o Prism based combiners P216 o Performance issues P268 o Overview P217 o Work on manufacturability P269 o Waveguide combiners P219 o Battle between DOE & HOE P273 o Light transmission P221 o Overview P274 o Cascaded mirror combiners P224 o Volume forecasts P275 o Diffractive element combiners P230 o Market forecasts P276 o Surface Relief Gratings, principle P232 Waveguides and displays intercompatibility P277 o Material requirements P235 o Display requirements P278 o Origin and development of the technology P237 o Consequences of using waveguide combiners P279 o Manufacturing P238 o OLED-on-Si, the push for improvement P281 o Wafer requirements P240 o MicroLED, the best of both worlds P282 o Mapping of players in the supply chain P244 Market of today and its evolutions P283 o Tentative supply chain analysis P245 o AR headsets: markets and volumes forecasts P284 o Structure of lenses P246 o Focus on some companies P290 o Performance issues P249 Technological developments for future of AR P297 o Improving yield to reduce costs P250 Displays & optical vision systems for VR, AR & MR | Sample | 6 TABLE OF CONTENTS Part 4/4 Conclusion P302 Annexes P304 o Introduction to display technologies P305 o High Dynamic Range P309 o Color gamut P314 o Color volumes P323 About Yole Développement P327 Displays & optical vision systems for VR, AR & MR | Sample | 7 LIST OF COMPANIES MENTIONED IN THIS REPORT AKONIA HOLOGRAPHICS, ALEDIA, APPLE, ATHEER, AUO, AVEGANT, BAYER, BOE, CANON, COLOUR HOLOGRAPHIC, CORNING, DAQRI, DEE POON, DELL, DIGILENS, DISPELIX, EMAGIN, ETRI, EVG, EYEFLUENCE, FACEBOOK, FINISAR, FOVE, FRAUNHOFER, GLO, GOOGLE, HAMAMATSU, HIMAX, HOLOEYE, HP, HTC, IDEALENS, INTEL, ITRI, JDI, KONICA MINOLTA, KOPIN, LEAP MOTION, LENOVO, LETINAR, LG, LIMBAK, LINQ, LITEON, LUMINIT, LUMIODE, LUMUS, MAGIC LEAP, META, MICROOLED, MICROSOFT, MIRA, MOLECULAR IMPRINTS, NINTENDO, NVIDIA, OAKLEY, OCULUS, OHARA, OLIGHTEK, OPTINVENT, OSTERHOUT DESIGN GROUP, PICO, PIMAX, PLAYNITRIDE, PUPIL LABS, QUALCOMM, RAONTECH, RAZER, ROCKWELL COLLINS, SAMSUNG, SCHOTT, SEGA, SEIKO EPSON, SENSIKS, SMI, SONY, STARBREEZE, SUMITA, SYNDIANT, TEXAS INSTRUMENTS, THEEYETRIBE, TOBII, VALVE, VUZIX, WAVEOPTICS, YOUNG OPTICS (…) Displays & optical vision systems for VR, AR & MR | Sample | 8 ABOUT THE AUTHOR OF THIS REPORT Biography & contact detail Dr. Zine Bouhamri As a Technology & Market Analyst, Displays, Dr. Zine Bouhamri 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.