The XR display market is forecast to grow to US$4.6 billion in 2034.

Displays for Virtual, Augmented and Mixed Reality 2024-2034: Forecasts, Technologies, Markets

Encompassing displays for XR headsets, including micro-LED, laser beam scanning, liquid-crystal on silicon displays, OLED, LCDs, holographic and light field displays, and more. Players, forecasts, and analysis in the VR, AR, and MR markets.


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This report characterizes the display industry for virtual, augmented and mixed reality (VR/AR/MR) devices, analyzing markets, technologies and players. It provides in-depth coverage of seven individual display technologies and forecasts their uptake in spatial computing from 2024 to 2034, alongside ten-year forecasts and historic data from 2010 onwards for the entire VR, AR and MR headset market. It outlines growing opportunity, with the VR, AR and MR display market forecast to grow to US$4.6B by 2034.
 
Virtual reality (VR) devices replace the real environment with the virtual, whereas augmented reality (AR) headsets optically overlay content on top of the real world. Some of these devices can deliver mixed reality (MR) experiences, with overlaid virtual content interacting with real objects. Collectively, these concepts are referred to as extended reality (XR) or spatial computing. Apple's Vision Pro has brought new excitement to this space, gaming-focused VR devices from Meta and others including Pico and Sony have sold in the millions, and AR devices from Vuzix, Microsoft and more have found a valuable place in industry.
 
Display systems form the heart of these devices, and the XR display market is expected to grow at a CAGR of 11% to 2034. Alongside optics, displays are a key limiting technology for AR: displays need to be very bright, power efficient, high resolution, compact and acceptably priced all in one package. In VR, upgraded display systems can give a strong competitive edge, shrinking headsets for more comfortable wear, enhancing video passthrough MR and providing more immersive experiences.
 
As such, this report considers the application areas of VR devices, including those with MR passthrough capability, and AR devices, splitting these into narrow and wide field of view (FoV) devices. The latter of these are frequently MR-capable. The overall markets for these headsets are discussed, with the optics technologies that closely link to displays outlined. The display requirements for each of these device types, which differ substantially, are set out.
 
Important VR display technologies. Source: IDTechEx
 
Seven different display technologies are analyzed in detail: liquid crystal displays (LCDs), OLED (organic light emitting diode) with TFT backplanes, OLED-on-silicon/micro-OLED, micro-light emitting diode (micro-LED) microdisplays, liquid crystal on silicon (LCoS), digital micromirror device (DMD)/digital light processing (DLP) and laser beam scanning (LBS). This includes:
  • In-depth technological and market discussion, tracking key innovations, trends and players.
  • Benchmarking on 13 technological and commercial factors.
  • Application suitability analysis for different spatial computing systems.
  • Ten-year forecasts for adoption, units sold and revenue for each technology in VR and narrow/wide FoV AR.
 
Additionally, overall forecasts from 2024-2034 VR and AR headset industries that form the market for these display technologies are provided, alongside historical data. Discussion of technologies that are expected to have a substantial impact in the further future, including holographic and light field displays, is included. Conclusions on the evolving future of the XR display market are identified.
 
Important AR display technologies. Source: IDTechEx
 
This report follows from IDTechEx's existing titles "Optics for Virtual, Augmented and Mixed Reality", "Virtual Reality & Augmented Reality Headsets" and "Micro-LED Displays", further deepening its comprehensive coverage of the fast-evolving XR industry. Its methodology involved extensive primary and secondary research with a key focus on interviewing executives and engineers within the display and wider XR ecosystems, in addition to attendance of major conferences including CES, SID Display Week and Laval Virtual. It provides 27 company profiles as well as further case studies of important developments in the XR display world.
 
Unique position and experience behind this report
 
IDTechEx has been covering the VR, AR and MR industry since 2015, staying close to the technical and market developments, interviewing key players worldwide, attending numerous conferences and delivering multiple consulting projects. IDTechEx's long history within this area has provided it a unique ability to curate a network within this space, bolstering its analysis in this report.
 
IDTechEx's report assesses the VR, AR and MR market in considerable detail, evaluating the different constituent technologies, evolving use-cases, potential adoption barriers and the difficulties of competing in this crowded space. The report includes multiple company profiles based on interviews with major players across the different technologies. IDTechEx also develops granular ten-year market forecasts and assessments of the potential for success of the technologies covered.
 
This report provides critical market intelligence about the diverse and fast-changing extended reality (XR) display industry. This includes:
 
Technology trends & player analysis
  • An introduction to the augmented, mixed and virtual reality (AR/MR/VR) headset market, including analysis of key trends, expected market entrance from major players and assessment of the competitive landscape.
  • Introduction to the display requirements of XR devices, including the optical systems that partner with displays.
  • For seven distinct display panel technologies, technological background, expected innovations, analysis of important players, overview of the supply chain ecosystem, assessment of fitness for VR and narrow/wide field of view (FoV) AR devices.
  • Analysis of display backplanes and driving technologies, "true 3D" (holographic and light field) displays and competitor technologies.
  • 27 company profiles included including interviews.
  • Updates from conferences in 2023, including SID Display Week, Laval Virtual and CES.
 
Market forecasts & analysis
  • Ten-year granular market forecasts for the following, including basis in historical data and narratives:
o Overall headset market (VR including MR-capable devices, AR including MR-capable devices).
o Displays by panel technology (e.g., OLED-on-silicon, LCD, DLP, etc.). AR devices are divided into narrow vs. wide field of view.
  • Benchmarking of the above technologies on 13 commercial and technological factors, with quantitative application fitness assessment.
  • Analysis and technical discussion of the potential winning technologies within these areas.
Report MetricsDetails
Historic Data2010 - 2023
CAGRThe XR display market is forecast to grow to US$4.6 billion in 2034, representing a CAGR of 11% over the forecast period.
Forecast Period2024 - 2034
Forecast UnitsHeadsets: units, revenue (USD million). Displays: adoption proportions, units, revenue (USD million)
Regions CoveredWorldwide
Segments CoveredOverall headset market (VR including MR-capable devices, AR including MR-capable devices), displays by panel technology (e.g., OLED-on-Silicon, LCD, DLP etc.). AR devices divided into narrow vs. wide field of view.
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Table of Contents
1.EXECUTIVE SUMMARY
1.1.VR, AR, MR and XR as experiences
1.2.Segmenting devices: VR vs. AR
1.3.Display and optics systems in VR and AR
1.4.Classifying headsets
1.5.The metaverse as a driver for XR development
1.6.XR devices and the metaverse
1.7.Apple's Vision Pro and re-evaluation of XR
1.8.The rise of passthrough MR in VR headsets
1.9.The outlook for XR: comparing the VR and AR markets
1.10.Display panel technologies in VR
1.11.Display panel technologies in AR
1.12.Benchmarking criteria (I): commercial factors
1.13.Benchmarking criteria (II): technological factors
1.14.Liquid crystal displays (LCDs): overview
1.15.Major VR LCD ecosystem players
1.16.Outlook for LCDs
1.17.OLED (organic light emitting diode) displays: overview
1.18.OLED-on-silicon/micro-OLED displays: overview
1.19.OLEDoS vs. OLED on TFT
1.20.OLED for VR: what might the new ecosystem look like?
1.21.The OLEDoS ecosystem: Sony holds a powerful position
1.22.Outlook for OLED(-on-TFT) displays
1.23.Outlook for OLEDoS displays
1.24.Micro-light emitting diode (micro-LED) displays: overview
1.25.Possible supply chain for micro-LED displays
1.26.Summary: micro-LED displays
1.27.Liquid crystal on silicon (LCoS) displays: overview
1.28.Digital micromirror device (DMD)/digital light processing (DLP) displays: overview
1.29.Supply chains in LCoS for AR
1.30.The DLP/DMD ecosystem in AR
1.31.DLP vs. LCoS: why has DLP lost ground?
1.32.Outlook for LCoS displays
1.33.Outlook for DLP displays
1.34.Laser beam scanning (LBS): overview
1.35.The LBS ecosystem
1.36.Outlook for LBS displays
1.37.Unweighted comparison of all display types
1.38.VR displays: benchmark performance
1.39.Summary: Displays for VR
1.40.Narrow FoV AR displays: benchmark performance (plots)
1.41.Wide FoV AR displays: benchmark performance (plots)
1.42.Summary: displays for AR
1.43.Forecasts in this report
1.44.VR headsets: revenue
1.45.VR headsets: headset volume
1.46.VR displays: adoption proportions
1.47.VR displays: volume/no. displays
1.48.VR displays: revenue
1.49.AR headsets: revenue
1.50.AR headsets: headset volume
1.51.Narrow FoV AR displays: adoption proportions
1.52.Narrow FoV AR displays: volume/no. displays
1.53.Narrow FoV AR displays: revenue
1.54.Wide FoV AR displays: adoption proportions
1.55.Wide FoV AR displays: volume/no. displays
1.56.Wide FoV AR displays: revenue
1.57.Displays for VR: analyst outlook (I)
1.58.Displays for VR: analyst outlook (II)
1.59.Displays for AR: analyst outlook (I)
1.60.Displays for AR: analyst outlook (II)
2.INTRODUCTION
2.1.Introduction to extended reality (XR)
2.1.1.VR, AR, MR and XR as experiences
2.1.2.Segmenting devices: VR vs. AR
2.1.3.Classifying headsets
2.1.4.AR, MR, VR and XR: a brief history
2.1.5.The 2010s to date - the age of XR begins
2.1.6.Applications in VR, AR & MR
2.1.7.The metaverse as a driver for XR development
2.1.8.XR devices and the metaverse
2.1.9.Industry 4.0 and XR
2.1.10.VR/AR solutions for Industry 4.0
2.1.11.Apple's Vision Pro and re-evaluation of XR
2.1.12.The rise of passthrough MR in VR headsets
2.1.13.Old terminology: PC-, standalone and smartphone XR
2.1.14.Updating terminology: standalone vs. tethered
2.1.15.AR: Defining terminology (I)
2.1.16.AR: Defining terminology (II)
2.1.17.Consumer AR headsets: a rocky history
2.1.18.Consumer AR devices face tough competition
2.1.19.AR headsets as a replacement for other smart devices
2.1.20.AR as the end goal
2.1.21.AR, MR and VR - market development
2.1.22.VR headsets: selected players
2.1.23.AR headsets: selected players
2.1.24.Potential Big Tech entries to the AR market (I)
2.1.25.Potential Big Tech entries to the AR market (II)
2.1.26.The outlook for XR: comparing the VR and AR markets
2.2.Introduction to VR displays
2.2.1.VR display and optics requirements
2.2.2.Display panel technologies in VR
2.2.3.Comparing VR display types
2.2.4.Choices of VR optic
2.2.5."Reverse passthrough": a new display type for VR
2.2.6.Benchmarking performance of VR displays
2.2.7.Major display suppliers
2.2.8.Summary: displays for VR
2.3.Introduction to AR displays
2.3.1.AR optics and display requirements
2.3.2.Display panel technologies in AR
2.3.3.Optical combiners: definition and classification
2.3.4.Optical combiners for AR
2.3.5.Common waveguide architectures
2.3.6.Common waveguide architectures: operating principle and device examples
2.3.7.Reflective (geometric) waveguides
2.3.8.Reflective waveguides: SWOT analysis
2.3.9.Surface relief grating waveguides
2.3.10.Diffractive waveguides (SRG): SWOT analysis
2.3.11.Volume holographic grating waveguides
2.3.12.Diffractive waveguides (VHG): SWOT analysis
2.3.13.Birdbath optics: current top choice for lower-end AR
2.3.14.Birdbath combiners: SWOT analysis
2.3.15.Status and market potential of optical combiners
2.3.16.Optical engines: combining displays and optics in XR
2.3.17.Narrow FoV AR displays: benchmark performance
2.3.18.Wide FoV AR displays: benchmark performance (discussion)
2.3.19.Conclusion: the future of AR displays
2.4.Fundamental display metrics
2.4.1.Purpose of this section
2.4.2.Field of view defines XR experiences
2.4.3.Eyebox and eye relief: keys to XR usability
2.4.4.No free lunches: etendue, FoV and eyebox
2.4.5.Measuring brightness and efficiency
2.4.6.Resolution, FoV and pixel density
2.4.7.Foveated rendering and displays: higher display quality at reduced resolution for both VR and AR
2.4.8.Color gamuts: how colorful is my image?
2.4.9.Contrast and dynamic range: the same but different
2.4.10.The screen door effect, Mura effect and aliasing - ugly display artefacts
2.4.11.How do display requirements differ between AR and VR?
3.MARKET FORECASTS
3.1.1.Forecasts in this report
3.2.Forecasting methodology
3.2.1.VR headset forecasting: important data sources
3.2.2.AR headset forecasting: important data sources
3.2.3.Methodology - device and display forecasts
3.2.4.AR and VR headsets: state of the market
3.3.Forecasts: VR headsets and displays
3.3.1.VR: historic device sales
3.3.2.Cyclic nature of VR hardware sales
3.3.3.VR headsets: revenue
3.3.4.VR headsets: headset volume
3.3.5.VR displays: adoption proportions
3.3.6.VR displays: volume/no. displays
3.3.7.VR displays: revenue
3.3.8.Conclusion: the future of VR displays
3.4.Forecasts: AR headsets and displays
3.4.1.AR: historic device sales
3.4.2.What is not considered in forecasting
3.4.3.AR headsets: revenue
3.4.4.AR headsets: headset volume
3.4.5.Narrow FoV AR displays: adoption proportions
3.4.6.Narrow FoV AR displays: volume/no. displays
3.4.7.Narrow FoV AR displays: revenue
3.4.8.Wide FoV AR displays: adoption proportions
3.4.9.Wide FoV AR displays: volume/no. displays
3.4.10.Wide FoV AR displays: revenue
3.4.11.Conclusion: the future of AR displays
4.DISPLAY PANEL TECHNOLOGIES
4.1.Liquid crystal displays (LCDs)
4.1.1.Liquid crystal displays (LCDs): overview
4.1.2.LCDs in VR: example device
4.1.3.LCD in AR: example devices
4.1.4.LCDs: introduction
4.1.5.Illuminating LCD panels
4.1.6.Global backlighting vs. mini-LED backlighting (local dimming)
4.1.7.How are mini-LED backlights assembled?
4.1.8.Laser backlighting in LCDs
4.1.9.Field sequential color in LCDs: resolution expansion via the backlight
4.1.10.JDI case study (I): reducing motion blur and ghosting in LCDs by strobing the backlight
4.1.11.JDI case study (II): decreasing the response time of LCDs
4.1.12.Major VR LCD ecosystem players
4.1.13.What's next for LCDs in VR?
4.1.14.Summary: LCDs
4.2.OLED (organic light emitting diode) displays
4.2.1.OLED (organic light emitting diode) displays: overview
4.2.2.OLED displays in VR: example devices
4.2.3.OLED displays: introduction
4.2.4.OLED vs LCD: direct emission vs transmission
4.2.5.How do OLEDs work?
4.2.6.Motivations for OLED material development advancement
4.2.7.Room at the top: strategies to widen display color gamuts
4.2.8.Readiness level of OLED emissive materials
4.2.9.RGB vs white OLED
4.2.10.Why did OLED use decline in VR?
4.2.11.Why does the PS VR2 use OLED displays?
4.2.12.What limits OLED pixel density?
4.2.13.Case study: increasing OLED pixel density via photolithography
4.2.14.Why has photolithographic patterning of OLEDs been a difficult problem to solve?
4.2.15.Case study: JDI's eLEAP process
4.2.16.Flexible/curved OLED displays in VR
4.2.17.OLED for VR: what might the new ecosystem look like?
4.2.18.Summary: OLED displays
4.3.OLED-on-silicon/micro-OLED displays
4.3.1.OLED-on-silicon/micro-OLED displays: overview
4.3.2.OLEDoS displays in AR: example devices
4.3.3.OLEDoS displays in VR: example devices
4.3.4.OLEDoS displays: introduction
4.3.5.OLEDoS vs. OLED on TFT
4.3.6.OLEDoS displays are well-proven for near-eye display use
4.3.7.Why is W-OLED dominant in OLEDoS displays?
4.3.8.Case study: eMagin, Samsung Display and OLEDoS patterning
4.3.9.Case study: OLEDoS as an enabler for low-profile AR (I)
4.3.10.Case study: OLEDoS as an enabler for low-profile AR (II)
4.3.11.OLEDoS with birdbath combiners: a popular choice for AR
4.3.12.Microdisplays in VR: does eyebox pose a problem?
4.3.13.The OLEDoS ecosystem: Sony holds a powerful position
4.3.14.Summary: OLEDoS displays
4.4.Micro-light emitting diode (micro-LED) displays
4.4.1.Micro-light emitting diode (micro-LED) displays: overview
4.4.2.Micro-LED displays in AR: example devices
4.4.3.Micro-LED displays: introduction
4.4.4.Manufacturing methods
4.4.5.Mass transfer methods for micro-LED
4.4.6.Mass transfer and assembly technologies
4.4.7.Manufacturing methods for XR displays
4.4.8.Color assembly choices
4.4.9.Case study: Jade Bird Display and the commercial launch of micro-LED in AR
4.4.10.Optical lens synthesis/RGB die-by-die color assembly in AR: a stopgap solution?
4.4.11.Common color assembly choice comparison
4.4.12.Basic requirements of QDs for micro-LED displays
4.4.13.Material choices for micro-LED chips
4.4.14.Possible supply chain for micro-LED displays
4.4.15.Case study: Plessey, Meta and Big Tech interest in micro-LED microdisplays
4.4.16.Case study: AR contact lenses powered by microLEDs
4.4.17.Summary: micro-LED displays
4.5.Liquid crystal on silicon (LCoS) displays
4.5.1.Liquid crystal on silicon (LCoS) displays: overview
4.5.2.LCoS displays in AR: example devices
4.5.3.LCoS displays: introduction
4.5.4.LCoS micro-display architecture
4.5.5.How LCoS displays operate
4.5.6.Liquid crystal material choice affects how panels perform
4.5.7.LCoS performance requirements
4.5.8.Working principle of simple LCoS-based AR headsets
4.5.9.Case study: Google Glass EE LCoS illumination setup
4.5.10.Illuminating LCoS chips and combining color
4.5.11.AKONIA: indicating possible approaches to AR for Apple
4.5.12.Case study: the Magic Leap 2 and the unique advantages of LCoS
4.5.13.Case study: the Magic Leap 1's attempts to solve the vergence-accommodation conflict
4.5.14.Manufacturing LCoS chips
4.5.15.Supply chains in LCoS for AR
4.5.16.Representative LCoS modulator providers and their unique products
4.5.17.Case study: OmniVision
4.5.18.Case study: Meadowlark Optics Inc.
4.5.19.Case study: Himax Technologies Inc.
4.5.20.Case study: Himax's front-lit LCoS
4.5.21.Summary: LCoS displays
4.6.Digital micromirror device (DMD)/digital light processing (DLP) displays
4.6.1.Digital micromirror device (DMD)/digital light processing (DLP) displays: overview
4.6.2.DLP displays in AR: example devices
4.6.3.DLP displays: introduction
4.6.4.Technology choices for DLP displays
4.6.5.Basic principles of DMD operation
4.6.6.DMD mirrors and wobulation: old vs. new
4.6.7.Illuminating DLP displays
4.6.8.Combining LED colors for DLP
4.6.9.Texas Instruments' Pico DMDs
4.6.10.The DLP supply chain
4.6.11.Case study: Snap, WaveOptics and DLP
4.6.12.The DLP/DMD ecosystem in AR
4.6.13.Comparing benchmarks: DLP vs. LCoS
4.6.14.DLP vs. LCoS: why has DLP lost ground?
4.6.15.Summary: DLP displays
4.7.Laser beam scanning (LBS) displays
4.7.1.Laser beam scanning (LBS): overview
4.7.2.LBS displays in AR: example devices
4.7.3.LBS displays: introduction
4.7.4.LBS development: where do firms differentiate?
4.7.5.The LBS ecosystem
4.7.6.Technology choices for LBS displays
4.7.7.LBS, holographic reflectors and retinal projection
4.7.8.Combining RGB lasers for color displays
4.7.9.Case study: software to ease alignment tolerances in LBS displays and AR devices
4.7.10.Scanning patterns and resonance: a tough tradeoff
4.7.11.MEMS mirrors: the heart of LBS devices
4.7.12.LBS has synergies with LiDAR technology
4.7.13.Case study: developing LBS systems alongside LiDAR
4.7.14.Supply chain crossover in LBS and LiDAR
4.7.15.Summary: LBS displays
4.8.Display backplanes and driving technologies
4.8.1.Overview: backplanes and driving technologies
4.8.2.Backplane technology choices: TFT materials
4.8.3.Low temperature polycrystalline oxide (LTPO): hybridized TFT materials for variable refresh rates
4.8.4.CMOS backplanes for displays
4.8.5.Display size and economics depend on backplane materials
4.8.6.Passive matrix addressing
4.8.7.Active matrix addressing: the ubiquitous addressing method
4.8.8.Pixel driving circuits for active matrix LCD and OLED
4.8.9.Pixel driving for micro-LEDs
4.8.10.Comparison between PM and AM addressing
4.8.11.Pulse amplitude modulation (PAM) and pulse width modulation (PWM) driving
4.8.12.Summary: backplanes and driving
5."TRUE 3D" DISPLAYS
5.1.Overview: "true 3D" displays
5.2.The vergence-accommodation conflict
5.3.Solutions to the vergence-accommodation conflict for XR
5.4.Light field displays: reconstructing scenes from multiple viewpoints
5.5.Avoiding the resolution limit: sequential light field displays
5.6.Case study: CREAL's light field near-eye displays
5.7.Light field displays with laser beam scanning
5.8.Holography: reconstructing wavefronts
5.9.Computer-generated holography: digital hologram generation
5.10.VividQ: holographic displays for AR
5.11.SWOT: "true 3D" displays
5.12.Geometric phase lenses with eye tracking: the best alternative to "true 3D" displays?
5.13.What is geometric (Pancharatnam-Berry) phase?
5.14.Why geometric phase lenses matter
5.15.Liquid crystals and switchable waveplates
5.16.Liquid crystals in GPLs
5.17.Geometric phase lenses: SWOT
5.18.Summary: "true 3D" displays
6.COMPARATIVE BENCHMARKING OF DISPLAY TYPES
6.1.1.Introduction to display benchmarking
6.2.Benchmarking display types
6.2.1.Benchmarking criteria (I): commercial factors
6.2.2.Benchmarking criteria (II): technological factors
6.2.3.Benchmark performance: LCDs
6.2.4.Benchmark performance: OLED-on-TFT
6.2.5.Benchmark performance: OLED-on-Si
6.2.6.Benchmark performance: Micro-LED
6.2.7.Benchmark performance: LCoS
6.2.8.Benchmark performance: DLP
6.2.9.Benchmark performance: LBS
6.2.10.Unweighted comparison of all display types
6.3.Comparing application suitability
6.3.1.Comparing benchmarks: VR and AR displays
6.3.2.Commercial factor weightings: the same for all device types
6.3.3.Technological factor weightings: VR
6.3.4.VR displays: benchmark performance (plots)
6.3.5.VR displays: benchmark performance (discussion)
6.3.6.Technological factor weightings: Narrow FoV AR
6.3.7.Narrow FoV AR displays: benchmark performance (plots)
6.3.8.Narrow FoV AR displays: benchmark performance (discussion)
6.3.9.Technological factor weightings: Wide FoV AR
6.3.10.Wide FoV AR displays: benchmark performance (plots)
6.3.11.Wide FoV AR displays: benchmark performance (discussion)
6.3.12.Summary: display technology benchmarking
7.COMPANY PROFILES
7.1.DigiLens
7.2.Dispelix
7.3.HTC's Vive XR Elite: New Design Approaches in Virtual Reality
7.4.IQE
7.5.Jade Bird Display
7.6.Jade Bird Display
7.7.Lenovo: The ThinkReality A3
7.8.LetinAR
7.9.Lumus
7.10.Lynx
7.11.Lynx — Q2 2022 Update
7.12.MICLEDI
7.13.MICROOLED
7.14.Mojo Vision
7.15.Oorym
7.16.Optinvent
7.17.OQmented
7.18.Ostendo Technologies
7.19.RayNeo (TCL)
7.20.Sony (CES 2023)
7.21.The Metaverse Standards Forum
7.22.TriLite Technologies
7.23.TruLife Optics
7.24.VitreaLab
7.25.VividQ
7.26.VividQ and Dispelix: Pairing Holographic Displays with Waveguides
7.27.VividQ: Visit and Tech Demo
 

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Report Statistics

Slides 348
Companies 27
Forecasts to 2034
ISBN 9781915514844
 

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