LG-Meta XR Alliance Connected by '3D Sensing Module'

As the XR (Extended Reality) market is about to fully bloom, interest in '3D sensing module' technology is increasing. This technology, which recognizes and implements images in three dimensions, is considered an essential component for XR headsets. There is even talk that Meta's partnership with LG in XR devices is due to the 3D sensing module. Because of this, LG Innotek, which holds 90% of the global related market, is expected to be one of the biggest beneficiaries in the XR market.

According to market research firm Research and Markets on the 5th, the global 3D sensing module market size is expected to grow from $2.9 billion (4.1661 trillion KRW) in 2020 to $10 billion (14.366 trillion KRW) in 2025, showing an average annual growth rate of 27.9%.

Dongwon Kim, a researcher at KB Securities, stated, "In the future, Apple, Microsoft, Google, and Meta will equip their metaverse XR headsets with LG Innotek's 3D sensing modules," and added, "The XR headset sensing module market, expected to reach 1 billion units by 2030, is projected to be worth 40 trillion KRW."

LG Innotek's ToF 3D sensing module.
[Photo by LG Innotek]

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3D sensing modules are one of the key core technologies of XR devices. Until now, 3D sensing modules have been used in smartphones to assist with photography or facial recognition, but recently their applications have expanded to the XR market. Along with XR device panels like OLEDoS and camera modules for recognizing people and objects and preventing collisions, they are considered indispensable technologies for XR devices.

In particular, attention has increased as Apple supplies LG Innotek's ToF (Time of Flight) 3D sensing modules exclusively for its XR headset, the Vision Pro. Industry insiders say that Meta's recent XR alliance with LG Electronics was also influenced by the technological capabilities of LG Electronics' affiliates, including the 3D sensing module.

The core of the 3D sensing module is ToF. This 3D recognition technology calculates depth by measuring the time it takes for light emitted toward a subject to reflect back, allowing simultaneous measurement of distance and space. LG Innotek effectively maintains a monopoly in this market.

[Provided by LG Innotek]

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3D sensing modules are driving LG Innotek's performance. The proportion of 3D sensing modules in the company's total sales is about 20%. Considering that last year's total sales were around 20 trillion KRW, it is estimated that the 3D sensing module segment recorded about 4 trillion KRW.

Samsung Electro-Mechanics, which operates a camera module business, is also expected to possibly develop 3D sensing modules. Samsung Electro-Mechanics pursued mass production of 3D sensing modules in 2018 but has currently halted related business development due to a lack of demand from smartphone manufacturers such as Samsung Electronics and Huawei.

An industry insider explained, "If Samsung Electronics actively enters the XR device market in the future, Samsung Electro-Mechanics will likely develop XR-related technologies such as 3D sensing modules, but so far, such movements have not been seen," adding, "Samsung is maintaining a stance that 'it is not too late to enter the market after it blooms,' and is currently responding passively to the market."

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