Virtual and augmented reality (VR/AR) are expected to revolutionise entertainment, healthcare, communication and the manufacturing industries among many others. Near‐eye displays are an enabling vessel for VR/AR applications, which have to tackle many challenges related to ergonomics, comfort, visual quality and natural interaction. These challenges are related to the core elements of these near‐eye display hardware and tracking technologies. In this state‐of‐the‐art report, we investigate the background theory of perception and vision as well as the latest advancements in display engineering and tracking technologies. We begin our discussion by describing the basics of light and image formation. Later, we recount principles of visual perception by relating to the human visual system. We provide two structured overviews on state‐of‐the‐art near‐eye display and tracking technologies involved in such near‐eye displays. We conclude by outlining unresolved research questions to inspire the next generation of researchers.

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We present a near-eye augmented reality display with resolution and focal depth dynamically driven by gaze tracking. The display combines a traveling microdisplay relayed off a concave half-mirror magnifier for the high-resolution foveal region, with a wide field-of-view peripheral display using a projector-based Maxwellian-view display whose nodal point is translated to follow the viewer's pupil during eye movements using a traveling holographic optical element. The same optics relay an image of the eye to an infrared camera used for gaze tracking, which in turn drives the foveal display location and peripheral nodal point. Our display supports accommodation cues by varying the focal depth of the microdisplay in the foveal region, and by rendering simulated defocus on the "always in focus" scanning laser projector used for peripheral display. The resulting family of displays significantly improves on the field-of-view, resolution, and form-factor tradeoff present in previous augmented reality designs. We show prototypes supporting 30, 40 and 60 cpd foveal resolution at a net 85° × 78° field of view per eye.

Advances in computer graphics enable us to create digital images of astonishing complexity and realism. However, processing resources are still a limiting factor. Hence, many costly but desirable aspects of realism are often not accounted for, including global illumination, accurate depth of field and motion blur, spectral effects, etc. especially in real-time rendering. At the same time, there is a strong trend towards more pixels per display due to larger displays, higher pixel densities or larger fields of view. Further observable trends in current display technology include more bits per pixel (high dynamic range, wider color gamut/fidelity), increasing refresh rates (better motion depiction), and an increasing number of displayed views per pixel (stereo, multi-view, all the way to holographic or lightfield displays). These developments cause significant unsolved technical challenges due to aspects such as limited compute power and bandwidth. Fortunately, the human visual system has certain limitations, which mean that providing the highest possible visual quality is not always necessary. In this report, we present the key research and models that exploit the limitations of perception to tackle visual quality and workload alike. Moreover, we present the open problems and promising future research targeting the question of how we can minimize the effort to compute and display only the necessary pixels while still offering a user full visual experience.