New developments in light sources, detectors, optics and electronics will allow new functions. Miniaturization is required to use these functions in wearable devices. Wafer-based production methods offers the possibility to manufacture small optics, and wafer-level packaging allows to manufacture complete optical modules with integrated functions. Competition power will be more and more determined by technology. Integration of technologies will require strong system engineering. Vertical integration of supply chains is expected, requiring strong cooperation between Europe/US and Far East. This presentation provides a view on future optical devices required for imaging, augmented and virtual reality, and multi-dimensional sensing.