Between 2023 and 2033, the head-mounted display market is to witness a CAGR of 25.9%. According to projections, the HMD market may increase from USD 15.12 billion in 2023 to USD 151.29 billion by 2033.
The demand for head-mounted displays and other solutions is being secured by the gaming industry's growing need for augmented reality/virtual reality (AR/VR) technologies. The market can benefit from micro-displays lower prices. Aside from that, the intensifying need for mobile-based AR solutions may aid growth in the approaching years.
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The market experienced a 16.1% CAGR between 2017 and 2022. The demand for head-mounted displays has been spurred by the growing use of VR/AR head-mounted display technologies.
Being the link between the user and the setup, head-mounted devices are essential to VR/AR head-mounted display technologies. With the introduction of head-mounted displays, consumers may now enjoy more comfort and improved ergonomics. Their use of VR head-mounted display and AR head-mounted display technology has consequently been enhanced.
Many technology companies are creating cutting-edge head-mounted displays to improve the user experience for their VR/AR head-mounted display technology. Due to these factors, the market is to grow at a CAGR greater than 25.9% during the assessment period as a result of rising demand for head-mounted displays.
In aerospace and military, head-mounted displays (HMDs) are used for warfare simulations, battlefield visualizations, tactical augmented reality, digital twins, spatial orientation, situational awareness, weapon aiming, digital topography, and other essential tasks.
According to Goldman Sachs, the AR/VR market may produce USD1.4 billion in income from the military sector alone by 2025.
HMDs are extensively used in aerospace and defence to create Synthetic Training Environments (STE). STE is an AR head-mounted display technology that allows for the building of immersive modules for defence training. It aids in the improvement of troop drills such as snow-capped mountains and deserts, navigation, deep forests, and collaboration.
HMD, which incorporates VR/AR head-mounted display technology, lessens the burden by giving pilots important information that helps them respond more quickly. AR/VR technology offers hands-on training for real-time, data-driven aeronautical solutions. Real-time feedback is improved during training utilizing AR/VR technology, as is the effectiveness of skill transfer and information retention.
HMDs have successfully been employed for military purposes in addition to video games. As a result, one of the factors propelling the HMD market is the rise in demand for HMDs in the defence sector.
| Attributes | Details |
|---|---|
| Head-mounted Display Market CAGR (From 2023 to 2033) | 25.9% |
| Head-mounted Display Market HCAGR (From 2018 to 2023) | 16.1% |
| Head-mounted Display Market Size (2023) | USD 15.12 billion |
| Head-mounted Display Market Size (2033) | USD 151.29 billion |
Robust systems and high-speed networks are required to use HMDs combined with AR/VR technology. This is critical for head-mounted displays to function properly and provide consumers with a high level of network performance. To operate, VR head-mounted displays require a powerful PC or gadget. The introduction of 5G technology is foreseen to improve and eliminate disruptions in the functioning of cutting-edge HMDs.
5G technologies may shift storage, power usage, and processing power away from PCs and toward the cloud. Consequently, users can experience AR/VR technologies via head-mounted displays at any time and from any location.
According to an Intel estimate, by 2028, AR games can account for "more than 90% of 5G AR revenues," or over USD 36 billion globally.
5G technology enables faster data transfer rates, greater bandwidth, and lower latency, which ultimately improves the VR/AR head-mounted display user experience. 5G technologies offer greater network capacity than 4G technology and always contribute to increasing user experiences.
The greater initial setup expenses are the primary factor influencing head-mounted display sales. High-speed network connections with finely configured workstations and PCs are required for a better experience of HMDs coupled with cutting-edge technologies. The price of entry-level HMDs ranges from USD 1,000 to USD 1,500, which is higher than the price of other smartphone accessories.
HMDs may require several accessories to improve performance, such as VR gaming headsets and goggles, which are high-end motion-control VR headsets that capture and transmit full head and eye movements. A joystick, gamepad, or even gloves are required for pointing, firing, and sending commands to enable the gaming environment.
The initial expense of constructing a complementary environment to experience AR/VR technologies in head-mounted displays is considerable. As a result, one of the market's primary challenges is the high cost of the initial setup for enabling VR/AR head-mounted displays.
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Head-mounted displays are utilized in several applications, including virtual shopping, navigation, automobile, remote education, and remote support and maintenance. In retail applications, VR/AR head-mounted displays technology is utilized for product visualization, showroom enhancement, and in-store navigation.
Customers can try on a dress, top, or another piece of apparel on their virtual models presented in the mirror using an AR-based virtual fitting solution (Smart Mirror). HMDs are frequently used in retail to improve customer experience through the use of VR-based technology.
According to the Entertainment Software Association (ESA), consumer spending on the video game business was USD 30.4 billion in 2016, with USD 24.5 billion spent on content, USD 3.7 billion spent on hardware, and USD 2.2 billion spent on peripherals, including virtual reality (VR).
Head-mounted displays are essential for supplementing cutting-edge technologies. Rising spending on cutting-edge gaming applications may provide chances for head-mounted display sales in the future years.
Micro-displays, for example, give a wide field of view, a high-quality projected image, and compatibility with head-mounted displays. By incorporating micro-display technology in head-mounted displays, HMDs become lightweight, smart, adaptable, low latency, and simple to use. HMD manufacturers, such as Oculus VR, are concentrating on reducing latency in their products.
When connected to a smartphone, Recon Jet is a high-performance sportswear that displays performance indicators. The Sony HMZ-T3W wireless Personal 3D viewer is an example of an updated OLED Micro-display with dual OLED screens that support HD displays.
Smart glass is an example of an enhanced version of micro-display technology in HMD designs, making it lightweight, compact, and comfortable to wear. Advanced capabilities on head-mounted displays include access to the mobile internet browser, voice commands, performance monitoring and tracking, augmented reality, virtual surround sound imitation, and several connectivity possibilities for interacting with other devices.
As a result, the adoption of innovative technologies such as micro-display in the coming year may open up enormous prospects for HMD manufacturers.
| Segment Name | Head Mounted |
|---|---|
| HCAGR (2017 to 2022) | 15.4% |
| CAGR (2023 to 2033) | 24.8% |
| Market Size - 2023 | 12,437.8 |
| Market Share - 2023 | 82.3% |
| Segment Name | Eyewear |
|---|---|
| HCAGR (2017 to 2022) | 20.2% |
| CAGR (2023 to 2033) | 30.2% |
| Market Size - 2023 | 2,684.1 |
| Market Share - 2023 | 17.7% |
AR/VR technologies provide users with a realistic image in a virtual world, complete with sound and other sensations. This provides users with a sense of physical presence in their surroundings. Due to the exponential growth of AR/VR gaming technology around the world, developers have been motivated to increase the level of VR/AR head-mounted display gaming technology.
AR-VR technology in the gaming business has been trending since the successful introduction of the first AR game, Pokémon Go. As a result, head-mounted display manufacturers may have more enticing opportunities in the country.
The usage of a head-mounted display in VR head-mounted displays gaming enhances interaction with the virtual world.
The introduction of new technology in the gaming industry to improve the user experience may promote sales of head-mounted displays
| Segment Name | Discrete HMD |
|---|---|
| HCAGR (2017 to 2022) | 18.6% |
| CAGR (2023 to 2033) | 27.4% |
| Market Size - 2023 | 3,740.7 |
| Market Share - 2023 | 24.7% |
| Segment Name | Integrated HMD |
|---|---|
| HCAGR (2017 to 2022) | 21.8% |
| CAGR (2023 to 2033) | 31.4% |
| Market Size - 2023 | 2,326.6 |
| Market Share - 2023 | 15.4% |
| Segment Name | Slide-on HMD |
|---|---|
| HCAGR (2017 to 2022) | 14.2% |
| CAGR (2023 to 2033) | 23.5% |
| Market Size - 2023 | 9,054.7 |
| Market Share - 2023 | 59.9% |
By product, the eyewear segment is to rise at a rapid CAGR during the forecast period, owing to the widespread acceptance of smart glasses in several countries throughout the world, which offers up new opportunities for VR/AR head-mounted display makers.
Smart glasses frequently have advanced capabilities such as mobile internet browser access, voice commands, performance metrics and tracking, augmented reality, virtual surround sound imitation, and several connectivity possibilities for interacting with other devices. These glasses are being used in a variety of fields, including healthcare, education, and industry.
In the healthcare industry, smart glasses are used for data recording, streaming video, teleconferences, data transmission, telementoring, video recording, workflow, documentation, patient empowerment, and education.
Aside from that, the HMD market is likely to see an increase in sales of slide-on HMDs. It is projected to remain popular among other HMD types on the market.
| Segment Name | Gaming, Media & Entertainment |
|---|---|
| HCAGR (2017 to 2022) | 16.7% |
| CAGR (2023 to 2033) | 25.2% |
| Market Size - 2023 | 7,699.5 |
| Market Share - 2023 | 50.9% |
| Segment Name | Aerospace and Defense |
|---|---|
| HCAGR (2017 to 2022) | 13.8% |
| CAGR (2023 to 2033) | 23.1% |
| Market Size - 2023 | 2,272.9 |
| Market Share - 2023 | 15.0% |
| Segment Name | Healthcare and Medical Devices |
|---|---|
| HCAGR (2017 to 2022) | 19.5% |
| CAGR (2023 to 2033) | 28.3% |
| Market Size - 2023 | 1,538.1 |
| Market Share - 2023 | 10.2% |
| Segment Name | Engineering & Industry Applications |
|---|---|
| HCAGR (2017 to 2022) | 22.7% |
| CAGR (2023 to 2033) | 32.8% |
| Market Size - 2023 | 1,993.6 |
| Market Share - 2023 | 13.2% |
| Segment Name | Education |
|---|---|
| HCAGR (2017 to 2022) | 11.7% |
| CAGR (2023 to 2033) | 21.3% |
| Market Size - 2023 | 903.0 |
| Market Share - 2023 | 6.0% |
| Segment Name | Others |
|---|---|
| HCAGR (2017 to 2022) | 8.1% |
| CAGR (2023 to 2033) | 16.3% |
| Market Size - 2023 | 714.9 |
| Market Share - 2023 | 4.7% |
The gaming, media and entertainment segment is likely to lead the head-mounted display market with a significant market share over the forecast period.
The characteristics make the game more realistic, thus the projected hypothesis is that when users play PC games with HMD, they may have a higher enjoyment level than when they play computer games and view VR/AR head-mounted displays enabled movies with the traditional setup.
Among the most notable recent HMDs are Oculus Rift, Sensics' smart goggles, and Sony's HMZ-T2 3D viewer. The improved and modern HMDs give users new usage options and herald a new era in the digital gaming and entertainment space.
| Region | North America |
|---|---|
| HCAGR (2017 to 2022) | 14.3% |
| CAGR (2023 to 2033) | 21.8% |
| Market Size -2023 | 6,131.2 |
| Market Share - 2023 | 40.5% |
| Region | Latin America |
|---|---|
| HCAGR (2017 to 2022) | 23.7% |
| CAGR (2023 to 2033) | 30.4% |
| Market Size -2023 | 639.7 |
| Market Share - 2023 | 4.2% |
| Region | Europe |
|---|---|
| HCAGR (2017 to 2022) | 18.9% |
| CAGR (2023 to 2033) | 24.8% |
| Market Size -2023 | 3,704.0 |
| Market Share - 2023 | 24.5% |
| Region | East Asia |
|---|---|
| HCAGR (2017 to 2022) | 15.5% |
| CAGR (2023 to 2033) | 26.0% |
| Market Size -2023 | 2,968.4 |
| Market Share - 2023 | 19.6% |
| Region | South Asia & Pacific |
|---|---|
| HCAGR (2017 to 2022) | 17.3% |
| CAGR (2023 to 2033) | 35.8% |
| Market Size -2023 | 1,358.7 |
| Market Share - 2023 | 9.0% |
| Region | Middle East & Africa |
|---|---|
| HCAGR (2017 to 2022) | 12.3% |
| CAGR (2023 to 2033) | 32.3% |
| Market Size -2023 | 320.0 |
| Market Share - 2023 | 2.1% |
| Region | United States |
|---|---|
| HCAGR (2017 to 2022) | 13.5% |
| CAGR (2023 to 2033) | 20.4% |
| Market Size -2023 | 4,768.5 |
| Market Share - 2023 | 77.8% |
| Region | Canada |
|---|---|
| HCAGR (2017 to 2022) | 17.3% |
| CAGR (2023 to 2033) | 26.2% |
| Market Size -2023 | 1,362.7 |
| Market Share - 2023 | 22.2% |
The market in the United States is to expand by double digits throughout the forecast period. According to FMI, the United States may continue to be the lucrative market in North America. According to surveys, the shipment of head-mounted displays in the United States has climbed by 5% due to growth in the gaming business and an increase in the number of online and offline players in the United States.
The growing demand for richer content from the gaming sector and defence applications has fueled growth in the United States market. Rising demand, particularly from aerospace and defence applications, healthcare, manufacturing, and packaging, has fueled the expansion of the United States HMD market.
| Region | United Kingdom |
|---|---|
| HCAGR (2017 to 2022) | 26.8% |
| CAGR (2023 to 2033) | 32.7% |
| Market Size -2023 | 547.3 |
| Market Share - 2023 | 14.8% |
| Region | France |
|---|---|
| HCAGR (2017 to 2022) | 22.3% |
| CAGR (2023 to 2033) | 26.6% |
| Market Size -2023 | 580.7 |
| Market Share - 2023 | 15.7% |
| Region | Germany |
|---|---|
| HCAGR (2017 to 2022) | 17.3% |
| CAGR (2023 to 2033) | 22.6% |
| Market Size -2023 | 1,047.8 |
| Market Share - 2023 | 28.3% |
| Region | Italy |
|---|---|
| HCAGR (2017 to 2022) | 19.6% |
| CAGR (2023 to 2033) | 24.0% |
| Market Size -2023 | 380.9 |
| Market Share - 2023 | 10.3% |
| Region | Spain |
|---|---|
| HCAGR (2017 to 2022) | 20.8% |
| CAGR (2023 to 2033) | 26.1% |
| Market Size -2023 | 281.3 |
| Market Share - 2023 | 7.6% |
The United Kingdom has a strong international reputation as a center for HMD product design, engineering, and research, in addition to its position as the world's premier technology, professional, and business services hub. The demand for head-mounted displays and AR/VR technology is predicted to rise in the future years in the United Kingdom.
The United Kingdom government and head-mounted display technology manufacturers are partnering to develop advanced head-mounted display systems in VR/AR head-mounted display technologies. The increased demand for AR/VR technologies from technology businesses in the gaming, healthcare, and manufacturing industries is propelling the growth of the United Kingdom HMD market.
| Region | China |
|---|---|
| HCAGR (2017 to 2022) | 17.3% |
| CAGR (2023 to 2033) | 27.9% |
| Market Size -2023 | 1,865.0 |
| Market Share - 2023 | 62.8% |
| Region | Japan |
|---|---|
| HCAGR (2017 to 2022) | 13.7% |
| CAGR (2023 to 2033) | 23.5% |
| Market Size -2023 | 667.0 |
| Market Share - 2023 | 22.5% |
| Region | South Korea |
|---|---|
| HCAGR (2017 to 2022) | 11.9% |
| CAGR (2023 to 2033) | 20.9% |
| Market Size -2023 | 436.4 |
| Market Share - 2023 | 14.7% |
Throughout the projection period, China is to generate an incremental opportunity worth USD 13.29 billion. The Chinese government is constantly working on the development of HMDs in VR/AR head-mounted display technologies to secure the growth of the gaming, healthcare, and manufacturing industries.
The Chinese government is constantly investing in the development of new displays and AR/VR technologies, which may promote the growth of the China HMD market.
| Region | India |
|---|---|
| HCAGR (2017 to 2022) | 18.6% |
| CAGR (2023 to 2033) | 35.9% |
| Market Size -2023 | 668.9 |
| Market Share - 2023 | 49.2% |
| Region | Thailand |
|---|---|
| HCAGR (2017 to 2022) | 19.5% |
| CAGR (2023 to 2033) | 36.8% |
| Market Size -2023 | 228.6 |
| Market Share - 2023 | 16.8% |
| Region | Indonesia |
|---|---|
| HCAGR (2017 to 2022) | 21.7% |
| CAGR (2023 to 2033) | 40.6% |
| Market Size -2023 | 184.0 |
| Market Share - 2023 | 13.5% |
In India, the HMD market is predicted to rise rapidly. It is to expand at a CAGR of 35.9% throughout the forecast period because of an increase in India's HMD technologies and the government's initiative to create VR/AR head-mounted display technologies.
For example, the Indian Ministry of Defence (MoD) revealed in February 2021 that the army is in the process of buying 556 augmented reality head-mounted display (ARHMD) devices. Technological advancements may pave the path for increased sales of head-mounted displays in the country.
The head-mounted displays market is highly concentrated, which can be attributable to the fact that local and emerging players account for the majority of the market share. Tier-1 firms have a market share of 10% to 12%, and this category includes Microsoft Corporation, Google, Samsung, and BAE Systems.
Companies with a market share of more than 7% but less than 10% are the most promising. The head-mounted display manufacturers are to exhibit a rapid growth trend and capitalize on the prospects that the global market has to offer to facilitate corporate expansion and revenue generation. Elbit Systems, Huawei Technologies, and HTC Corporation are among the companies in this group.
The head-mounted display manufacturers having a market share of less than 7% are developing strategies to recruit new customers in overseas markets. This group includes Xiaomi, Avegant Corp., and LG Electronics.
Businesses in the market use a variety of expansion tactics to increase their position. Product launches, collaborations with major players, partnerships, acquisitions, and the strengthening of regional and worldwide distribution networks are examples of these strategies.
Launch
| Date | March 2021 |
|---|---|
| Company | Microsoft |
| Details | Microsoft unveiled the Mesh cloud service, allowing developers to create applications that let people to share holograms, communicate with one another, draw doodles, and appear as virtual avatars. The company also worked on Virtual Reality (VR) headsets, which immerse users in a computer-generated world while blocking out the physical world via AR headsets (HMD). |
| Date | February 2020 |
|---|---|
| Company | |
| Details | Google announced that the latest version of the Google Glass AR headset is now available for purchase. Google Glass Enterprise Edition-2 was released before one year through select workplace partners. Google made it accessible for direct purchase due to high demand from developers and companies. |
Agreement
| Date | February 2021 |
|---|---|
| Company | Elbit Systems |
| Details | Elbit Systems inked a Technical Cooperation Agreement (TCA) for a helmet-mounted display system. Under the terms of this agreement, BEL to produce and integrate the Helmet Mounted Display system for the Indian Navy and other rotary wing platforms of the Armed Forces. |
The market is valued at US$ 15.1 billion in 2023.
The market is estimated to develop at a CAGR of 25.9% through 2033.
Microsoft Corporation, Google, and Samsung are the prominent market players.
Rising usage of augmented reality and virtual reality technology to boost the market prospects.
North America is likely to expand at a CAGR of 21.8% through 2033.
| Projected Growth Rate (2023 to 2033) | 4.4% CAGR |
|---|---|
| Expected Market Value (2023) | USD 148,053.0 million |
| Market Value (2033) | USD 228451.9 million |
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