Head Mounted Display (HMD) Market

Market Definition

The Head Mounted Display Market size was valued at USD 8.66 billion in 2023 and is predicted to reach USD 32.04 billion by 2030 with a CAGR of 20.6% from 2024-2030. The Head-Mounted Display (HMD) are the wearable devices designed to be worn on the head and provide visual and/or auditory information to the user. These devices are used in various fields such as gaming, aviation, engineering, and medicine, and are combined with Inertial Measurement Units (IMUs) to create virtual reality headsets. An HMD integrates a display system, optics, sensors, and audio components to immerse users in digital environments. Also, they utilize technologies such as liquid crystal displays (LCDs), OLEDs, and cathode ray tubes (CRTs) to provide immersive visual experiences. HMDs display computer-generated imagery (CGI), live imagery from the physical world, or a combination of both, known as augmented reality (AR) or mixed reality (MR). HMDs enhance situational awareness by creating augmented reality experiences for users in different contexts.

Market Dynamics and Trends

The growing utilization of HMD within the gaming industry to enhance the gaming experience within the gaming industry is fuelling the growth of the market. The HMDs enable virtual reality (VR) gaming experience which provides realistic gaming experiences, enhancing the sense of presence within the gaming world.

For instance, the worldwide gaming industry is experiencing a robust growth, and is expected to reach USD 321 billion by 2026. As the gaming industry continues to expand, the demand for interactive gaming experience is poised to rise, leading to the development of HMDs which fosters a deeper connection to the games and its characters, thus boosting the demand of the product.

Moreover, the growth in adoption of head mounted displays within the military sector worldwide is further propelling the growth of the market. These advanced technologies provide pilots with critical information directly on their helmet visors, significantly enhancing situational awareness, response times, and reducing workload to ensure mission success. Also, HMDs can be integrated with weapon systems, allowing users to aim more precisely and engage targets more effectively. Thus, with the growth in defense sector the demand for HMDs rises, drives the growth of the market.

Furthermore, the increasing integration of HMDs in flight simulators within the aviation industry is significantly driving the growth of the HMD market. These advanced systems offer pilots highly realistic training environments, allowing for the practice of manoeuvres, emergency procedures, and instrument flying in a safe and controlled setting. HMD-equipped simulators provide cost-effective training solutions, enhance safety by allowing pilots to train for emergencies without real-life risks, ensuring compliance with regulatory standards.

Thus, the integration of HMD in the aviation industry underscores the pivotal role of HMD technology in revolutionizing pilot training, which in turn boost the market growth. However, high initial investment and ongoing maintenance costs associated with HMDs can be significant, particularly for high-end models with advanced features restrain the growth of the market.

On the other hand, integration of advance technologies such as eye-tracking technology will create future opportunities for the market. This integration allows users to interact more naturally by using foveated rendering technology, which makes things look better on a screen by focusing more on in a specific location, thus improving performance and reducing rendering workload.

Market Segmentations and Scope of the Study

The head mounted display (HMD) market share is segmented on the basis of technology, type, end user, and region. On the basis of technology, the market is divided into augmented reality, and virtual reality. On the basis of type, the market is divided into monocular, and binocular. On the basis of end user, the market is divided into defense sector, aviation industry, gaming and entertainment industry, healthcare sector, mining, oil & gas industry, automotive sector, manufacturing sector, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of head mounted display (HMD) market at present and is expected to continue its dominance during the forecast period. This is due to the presence of major companies such as Microsoft Corporation, Meta Platforms, Inc., and Rockwell Collins within the region. These companies contribute significantly to the innovation and development of head-mounted display technologies, driving forward the advancements and competitiveness of the HMD market on a regional scale.

As an example, in October 2023, Microsoft filed a new patent for a micro-LED display, aims at enhancing virtual, augmented, and mixed reality experiences, particularly for devices such as the HoloLens 2, a mixed reality head-mounted display. This patent signifies Microsoft's commitment to advancing display technology for improved functionality in VR, AR, and MR devices.

Moreover, the growing defense sector in the North America region, backed by increasing government investments to reinforce the national security through the procurement of advance gadgets including HMDs is further propelling the growth of the market.

As per the report published by the Stockholm International Peace Research Institute (SIPRI), the defense sector in the U.S. is experiencing significant growth, evidenced by a military spending of around USD 877 billion in 2022, constituting 39% of the total global military expenditure. Thereby, the substantial investments in defense sectors in North America, projects a  trajectory for the future of HMDs.

On the other hand, Asia-Pacific is showing a steady rise in the head mounted display market due to the rapid growth in the aviation sector within the region. HMDs are used in aviation sector for enhanced pilot training programs and to improve situational awareness and safety measures. The growth of the sector is highlighted by a report published by the International Trade Administration, which states that the aviation industry in India is growing consequently with an increase in domestic passengers by 50% and international passengers by 150% in 2022.

This notable expansion in the aviation sector is a key driver for the growth of the HMD market in the region, as it fosters demand for the required advanced technologies and solutions. Moreover, the rapid growth in gaming industry within the Asia-Pacific countries such as China, Japan, and South Korea drives the growth of the market.

These countries have large numbers of gamers and a vibrant community of game developers, which contributes to the growth of the market. According to a report published by China Internet Information Center, the gaming sector in China is growing with a market revenue of around USD 42.7 billion in the year 2023, accounting to an annual growth of 14%. This growth in gaming industry fuels the demand for head mounted displays, thus boosts the demand of the market.

Competitive Landscape

The HMD market trends comprising of various market players such as Meta Platforms, Inc., Sony Group Corporation, Microsoft Corporation, Samsung, Huawei Technologies Co., Ltd., HTC Corporation, Kopin Corporation, Rockwell Collins, Lynx Mixed Reality, RealWear Inc. among others. These market players are adopting various strategies such as product launch to maintain their dominance in the HMD market.

For instance, in January 2024, Sony showcased the XR HMD, an advance device designed to support creators in 3D content creation and film production. The XR HMD features 4K OLED micro displays powered by the Snapdragon XR2+ Gen 2 Platform, offering stunning image quality and seamless XR experiences.

Moreover, in November 2022, Huawei launched the Huawei Vision Glass, a smart viewing device that offers an immersive cinematic viewing experience. These smart glasses project a digital screen equivalent to a 120-inch giant display, providing users with an ultra-immersive experience, enhancing the entertainment experiences of the user.

Key Benefits

• The report provides quantitative analysis and estimations of the Head Mounted Display market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of Head Mounted Display market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the Head Mounted Display market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Technology

• Augmented Reality 

• Virtual Reality

By Type

• Monocular 

• Binocular 

By End User

• Defense Sector 

• Aviation Industry 

• Gaming and Entertainment Industry 

• Healthcare Sector

• Mining, Oil & Gas Industry

• Automotive Sector

• Manufacturing Sector

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Vietnam 

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 8.66 Billion
Revenue Forecast in 2030	USD 32.04 Billion
Growth Rate	CAGR of 20.6% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising adoption of HMD in gaming industry is fueling the growth of the market. Increasing adoption of HMD in aviation sector boost the market growth. Growing utilization head mounted displays within the military sector drives the market growth
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Meta Platforms, Inc.

• Sony Group Corporation

• Microsoft Corporation

• SAMSUNG

• Huawei Technologies Co., Ltd.

• HTC Corporation

• Kopin Corporation

• Rockwell Collins

• Lynx Mixed Reality

• RealWear Inc.