Head Mounted Display Market: Global Industry Analysis and Forecast (2023-2029)

Head Mounted Display (HMD) Market size was valued at USD 7650.51 Mn. in 2022 and the total Head Mounted Display (HMD) revenue is expected to grow at a CAGR of 41.13% from 2023 to 2029, reaching nearly USD 85315.14 Mn.

Head Mounted Displays are a type of new-generation technology that helps to enhance the user experience by providing them with real-time insights and a simulation environment along with the processed information regarding the task performed. The equipment, such as a controller, sensor, and camera, is integrated with the head-mounted display. These gadgets are portable; hence, HMD display is majorly adopted in the defense services, gaming sector for virtual reality, and medical practices.

The affordable microdisplay prices and increased demand for helmet-mounted displays as well as increased investments by key players in this industry are expected to drive the head mounted display (HMD) market growth. The rising utilization of augmented reality (AR) and virtual reality (VR) technologies in HMDs are expected to increase the market revenue growth. Besides that, the increase in demand for lightweight head-mounted displays and portable devices is expected to generate lucrative growth opportunities. However, inadequate HMD awareness is restraining market growth.
Head Mounted Display (HMD) Market Snapshot
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Head Mounted Display (HMD) Market Trends:
Head Mounted Display (HMD) in Sports Application to drive the market

Head Mounted Display (HMD) is rapidly becoming popular in sports applications such as drone racing, robot war, FPV sports, and others. Growing adoption of HMD in sports across the world, increasing production, the introduction of high-speed drones, growing expenditure in research and development of flying technologies, the introduction of racing sports leagues across different regions, increasing awareness of reducing harmful environmental emissions from sports vehicles, and increasing number of racing events are some of the key factors driving the growth of racing drones.

Due to the increasing popularity of HMD in sports applications especially in drone racing, many strategic initiatives such as collaboration, new product development, and other initiatives taken by market players and different bodies across the world will create a future trend in the APAC market. For example, in August 2019, The Drone Racing League announced the launch of a new drone named “DRL Racer4” that can speed from 0mph to 90mph in less than a second. It comes with an HMD device that provides the operator/pilot full control & visibility through the equipped camera in that drone.

The growing interest in e-sports and advancements in the gaming industry to drive the Head Mounted Display (HMD) Market

The growth of the 3D display market is predominantly driven by the increasing number of applications such as 3D games, including e-sports. The incorporation of 3D displays in VR headsets is driving the 3D display market. Sports enthusiasts are widely adopting 3D display-enabled gaming gadgets. Features such as gesture control, facial and voice recognition, augmented reality, and high-definition display offer an unmatched experience to gamers. The gaming industry has been witnessing significant changes in terms of technology and innovative graphics. Gaming companies are introducing 3D display-based games that provide a sense of depth to the player while playing the game.

Companies such as NVIDIA are engaged in manufacturing high-speed processors and graphic cards that would provide support to the 3D display technology. The introduction of stereoscopic 3D games with augmented and virtual reality has garnered a lot of attention from gamers. Hobbyists and enthusiasts prefer playing 3D games as it offers an intensive virtual reality experience. Technology is also witnessing a wide adoption in sports games as it offers gamers a more involved and intellectual experience. These factors are expected to drive the demand for Head Mounted Display (HMD) devices in the gaming industry.
Head Mounted Display (HMD) Market Dynamics:
Increased adoption of HMD in Gaming Applications

Users are playing PC games with the head mounted displays that will show a higher enjoyment level compared to the users playing computer games with conventional setups. This will increase the implementation of Head Mounted Display’s in gaming applications due to the availability of low-cost HMD devices and the demand for an enhanced gaming experience. As a result, the head mounted display supports boosting the users' enjoyment while making the game more interesting to play. Therefore, the rising launches of VR games have been witnessed over the years and are driving the growth of the head mounted display (HMD) market.

Moreover, the increasing growth of the gaming industry and rising product development will rise the demand for HMDs in VR gaming and drive the growth of the head mounted display (HMD) market. Low-cost HMD devices are available for use with 3D games and entertainment applications. Many brands of video glasses can be connected to modern video and DSLR cameras, making them applicable as a new-age monitor. As a result of the glasses' ability to block out ambient light, filmmakers and photographers can see clearer presentations of their live images.

For example, in March 2022, Sony launched a new slate of PlayStation VR games, which includes a VR adaptation of Doom 3, I Expect You To Die 2: The Spy and The Liar, Fracked, After the Fall, Song in the Smoke, and Zenith: The Last City. The Oculus Rift is a virtual reality (VR) head mounted display created by Palmer Luckey that the company Oculus VR developed for virtual reality simulations and video games. The HTC Vive is a virtual reality head mounted display.

The headset is produced by a collaboration between Valve and HTC, with its defining feature being precision room-scale tracking and high-precision motion controllers. The PlayStation VR is a virtual reality headset for gaming consoles, dedicated to the PlayStation 4. Windows Mixed Reality is a platform developed by Microsoft that includes a wide range of headsets produced by HP, Samsung, and others and is capable of playing most HTC Vive games. It uses only inside-out tracking for its controllers.

Lack of standardization for Head Mounted Display (HMD) design

Many HMD and eyeglasses manufacturers are focusing on improving the user experience and making devices more informative. Because various items have varied specs and quality, the absence of standardization generates compatibility concerns across products from different suppliers, which impacts user experience. VR and AR HMDs require comparable universal standards that allow developers to create apps that are open and compatible across multiple headsets in order to achieve mainstream corporate and consumer adoption of HMDs.

It becomes more challenging for mobile virtual reality, where multiple smartphones from different manufacturers are utilized because users have varied operating systems, screen standards, and other factors. As a result, it becomes more difficult for developers to produce VR apps, constraining market growth. Therefore, the lack of standardization restrains the growth of the market.

Introduction of Lightweight Wearable Technology

The introduction of lightweight wearable technology has resulted in innovations in the field of head mounted displays due to which leading manufacturers began positioning them as consumer products, which contributed to the expansion of the Head Mounted Display (HMD) Market. The development of miniature systems could make these devices as lightweight as normal goggles and technological up-gradations will further allow high-resolution and ultra-high-definition projected images, increased compatibility, and a wide view of the field. The up-gradation will offer features like increased smart capabilities, compact, highly mobile, reduced latency, and high flexibility. These factors are expected to create growth opportunities for the head mounted display (HMD) market during the forecast period.
Head Mounted Display (HMD) Market Segment Analysis:
By Technology, the VR Technology segment was valued at USD 3038.04 Mn. and dominated the market in 2022. The segment is expected to grow at a CAGR of 39.00% during the forecast period. Virtual reality (VR) has emerged as a popular technological trend over the past decade. This is mostly due to recent investments by technology firms in enhancing VR systems while boosting user access and interest. The increasing use of VR HMDs in the gaming and entertainment industry as well as in clinical applications is expected to drive the segment growth during the forecast period.

Consumers prefer standalone VR HMD devices. Standalone devices make for a pleasant VR experience with no cords, and they promote ease of use and a simple setup process. In 2022, there were 14.1 million shipments of standalone VR HMDs by the end of the year. By 2027, that figure is expected to be 67.6 million annual shipments, exemplifying the immense growth in the VR market. Although not nearly as popular as standalone HMDs, tethered devices are used by a not-insignificant portion of consumers too. Between console and PC tethered VR HMDs, there were 3 million shipments by the end of 2022, with console expected to overtake PC in the tethered sub-segment starting in 2023. Mobile devices, using a smartphone inside a VR housing, still play a role, albeit a limited one thanks to the popularity of standalone headsets. In 2022, there were less than 1 million shipments, and by 2027 there will be under 600,000 shipments.



In 2022, the Asia-Pacific market receives the most shipments of VR HMDs in the consumer segment, with 6.7 million shipments forecasted for the year across all HMD form factors. North America, not far behind, is on track for just over 6.3 million shipments. The next closest market is Western Europe, expected to receive 3.5 million shipments. By 2029, those totals will be unrecognizable. Asia-Pacific will reach 28 million annual shipments, North America 21.6 million, and Western Europe 13.8 million. Despite lower HMD shipments in other parts of the world, every region is expected to grow at a significant rate. Despite Asia-Pacific leading the pack when it comes to shipments in the VR hardware consumer segment, it’s North America that accumulates the greatest revenue through 2027.
Head Mounted Display (HMD) Market Regional Insights:
Asia-Pacific region dominated the global head mounted display (HMD) market with a market share of 36.12% in 2022 and is expected to maintain its dominance holding a market share of 40.43% by 2029. The region is expected to grow at a CAGR of 43.14% during the forecast period. The dominance of the region is expected to be driven by the factors such as low production costs, low maintenance costs, and availability of cheap labor with adequate expertise in the field.

In addition, the increasing adoption of technologically advanced solutions, as well as increased smartphone penetration in developing countries such as India and China, are expected to have significant market influences. AR and VR technology is growing rapidly in industries such as commercial, healthcare, and consumer. Growing investments alongside rapidly increasing consumer and commercial sectors in emerging countries such as India, China, and Japan are driving the market growth. Likewise, the presence of leading competitors in the region is significantly contributing to the market's growth.



The North American region was valued at USD 2004.39 Mn. In 2022 and is expected to grow at a CAGR of 41.94% during the forecast period. The increasing consumer demand for enhanced connectivity and portability is expected to be the primary growth driver. In addition, the Military and defense sectors are one of the major end users of the head mounted display devices in North America. During the COVID-19 pandemic, North American countries have faced so many challenges during their day-to-day operations due to the restrictions imposed by respective governments.

The demand for more electronic components increased as several companies started operating remotely. Therefore, to operate under an automated environment, more deployment of electronic systems has been witnessed during FY 2020. This has driven the demand for Head Mounted Displays across the countries such as the United States, Canada, and Mexico. Moreover, the demand for consumer electronics has also witnessed a negative impact on its growth somehow during the first half of 2020 across the United States. However, the market in the United States was estimated to garner a Y-o-Y growth of nearly 6% during 2020 in the global head mounted display, according to the MMR analysis. This is due to increased consumer time spent on AR/VR technologies for different purposes such as entertainment & leisure. For instance, nearly 70% of United States customers have spent more time in 2020 compared to 2019 figures.
Head Mounted Display (HMD) Market Scope: Inquiry Before Buying



Global Head Mounted Display (HMD) Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 7650.5 Mn.


Forecast Period 2023 to 2029 CAGR:
41.13%
Market Size in 2029:
US $ 85315.1 Mn.


 Segments Covered:
by Type
Slide-on HMD
Integrated HMD
Discrete HMD


by Technology
AR Technology
VR Technology


by Component
Processors and Memory
Displays
Lenses
Sensors
Controllers
Cameras
Cases and Connectors
Others


by Product Type
Head-mounted
Eyewear


by Connectivity
Wired
Wireless


by Application
Consumer
Commercial
Enterprise & Industry
Engineering & Design
Healthcare
Aerospace & Defence
Education
Others



Head Mounted Display (HMD) Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Head Mounted Display (HMD) Market, Key Players are
1. BAE Systems (England, UK)
2. Beyeonics Ltd (Israel)
3. Dynabook Americas (Tokyo, Japan)
4. Epson (Japan)
5. Everysight (Israel)
6. Google LLC (California, United States)
7. HTC Corporation (Taiwan)
8. Lynx (France, Europe)
9. Magic Leap Inc. (Florida, United States)
10. Meta Company (France, Europe)
11. Microsoft (Washington, United States)
12. Nimo Planet (California, United States)
13. Oculus VR (United States)
14. Optinvent (Rennes, France)
15. Panasonic (Osaka, Japan)
16. Realwear (Washington, United States)
17. Samsung Electronics (Suwon-si, South Korea)
18. Solos (Hong Kong, China)
19. Sony (Tokyo, Japan)
20. Thales (Paris)
21. Ultraleap (Bristol, England)
22. Vuzix (West Henrietta, New York)

FAQs:

1. What are the growth drivers for the Head Mounted Display (HMD) market?
Ans. The affordable microdisplay prices and increased demand for helmet-mounted displays as well as increased investments by key players in this industry are expected to be the major driver for the Head Mounted Display (HMD) market.

2. What is the major restraint for the Head Mounted Display (HMD) market growth?
Ans. Inadequate HMD awareness is expected to be the major restraining factor for the Head Mounted Display (HMD) market growth.

3. Which region is expected to lead the global Head Mounted Display (HMD) market during the forecast period?
Ans. The Asia-Pacific market is expected to lead the global Head Mounted Display (HMD) market during the forecast period due to the low production costs, low maintenance costs, and availability of cheap labor with adequate expertise in the field. In addition, the increasing adoption of technologically advanced solutions, as well as increased smartphone penetration in developing countries such as India and China, are expected to have significant market influences.

4. What is the projected market size & growth rate of the Head Mounted Display (HMD) Market?
Ans. The Head Mounted Display (HMD) Market size was valued at USD 7650.5 Mn. in 2022 and the total Head Mounted Display (HMD) revenue is expected to grow at a CAGR of 41.13% from 2023 to 2029, reaching nearly USD 85315.1 Mn.

5. What segments are covered in the Head Mounted Display (HMD) Market report?
Ans. The segments covered in the Head Mounted Display (HMD) market report are Type, Technology, Component, Product Type, Connectivity, Application, and Region.