Head Mounted Display (HMD) Market Size, Share, Analysis, Growth, Forecasts 2032

Head Mounted Display (HMD) Industry Prospective:

The global head mounted display (HMD) market size was worth around USD 5.89 billion in 2023 and is predicted to grow to around USD 53.76 billion by 2032 with a compound annual growth rate (CAGR) of roughly 27.86% between 2024 and 2032.

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Head Mounted Display (HMD) Market: Overview

A head-mounted display, also known as a head-mounted tablet, is a digital display technology. It is designed to superimpose the entire viewing area of the user. These devices are adjusted in front of the wearer’s eyes either one or both and display digital content. In most cases, head mounted displays are also equipped with cameras to record the viewer's field of view and disperse the information to other connected digital technologies for analysis or decision-making. There are two main types of head mounted displays called binocular and monocular. The former type is located in front of both eyes while the latter is placed in front of only the eye, either left or right. The demand is the highest for monocular displays. The operating system for head mounted displays is highly advanced and independent of external technologies. Most HMDs are powered by Android systems while the user interface of the screen resembles that of a smartphone. Voice output is the most prevalent way of controlling applications. Head-mounted displays now have extended applications beyond entertainment. They are used for military, healthcare, mechanical engineering, and manufacturing purposes. The growing rate of product innovation is likely to fuel the head mounted display market growth rate during the projection period.

Key Insights:

• As per the analysis shared by our research analyst, the global head mounted display (HMD) market is estimated to grow annually at a CAGR of around 27.86% over the forecast period (2024-2032)
• In terms of revenue, the global head mounted display (HMD) market size was valued at around USD 5.89 billion in 2023 and is projected to reach USD 53.76 billion, by 2032.
• The head mounted display market is projected to grow at a significant rate due to the growing use of HMDs in the military aviation industry
• Based on the technology, the virtual reality (VR) segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the application, the commercial segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Head Mounted Display (HMD) Market: Growth Drivers

Growing use of HMDs in the military aviation industry will drive the market growth rate

The global head mounted display (HMD) market is expected to witness significant growth in the military aviation industry. It deals with the use of head mounted displays for providing excellent comprehensive situational awareness to the wearer about several critical aspects of the flight. The information superimposed on the field of view is real-time, accurate, and mission-informed. The HMD wearer will have access to information such as the horizon line to the flight path vector, altitude, airspeed, turn/bank indicators, attack angle, and other inputs that are essential for safe flying during a defense-based mission. The information provided through HMDs can also be customized to deliver more purposeful data such as firing status, weapon sensor, choice of targeting, and other details. The global military aviation industry has been growing at a steady pace driven by the rising need to develop highly efficient solutions that can be used for enhancing national security and protecting national interest. Collins Aerospace, a leading American technology company, recently launched the next-generation interface of the highly popular F-35 Gen III Helmet Mounted Display System. The re-engineered model provides critical information on essential points that an aircraft pilot may require for quick decision-making in a crucial situation. The next-generation model of the F-35 offers tactical, flight, and sensor information that is required to achieve safety, precision, and awareness. It is equipped with visor-projected night vision, head-up display (HUD), and HMD. The escalating investments in global military aircraft technology will help the industry for HMDs flourish.

The healthcare sector to deliver exceptional growth rate during the projection period

The global head mounted display (HMD) market is expected to be further driven by the growing use of HMD in the healthcare industry. Head mounted displays along with similar other viewing technologies are used for monitoring patients through peripheral vision. HMDs are widely used in medical treatments associated with emergency medicine, intensive care units (ICUs), and anesthesia. The emerging segment of virtual care will encourage the use of HMDs in the healthcare sector for training medical professionals and delivering enhanced patient-focused treatment.

Head Mounted Display (HMD) Market: Restraints

Health impact of HMDs may limit the market’s expansion rate

The global industry for head mounted displays (HMD) is projected to be restricted due to the several health impacts associated with HMDs. For instance, as per the National Institutes of Health (NIH), head mounted displays can cause changes in neck posture due to long-term use. In addition to this, the added weight of HMDs on the neck can lead to chronic pain and other associated symptoms. Since HMDs are directly placed in front of the eyes, wearers may have vision-related issues with consistent usage over a longer duration.

Head Mounted Display (HMD) Market: Opportunities

3D head mounted display technology to generate massive growth opportunities

The global head mounted display market is projected to generate extensive growth opportunities during the forecast period. The 3D HMD systems have found a wide range of applications across the growing gaming and training-based industries. The use of 3D HMDs for delivering superior grade and highly immersive viewing experiences to users will play a crucial role in shaping the industry. In June 2023, Apple, a leading technology giant, announced that the company was working on developing a novel Virtual Reality (VR) headset called Vision Pro. The product is set to be launched in 2024 and will cost around USD 5000. The Apple Vision Pro is an augmented reality (AR) experience facilitator that can generate a simulation-based experience across settings including meditation, movies, games, and work meetings. Similarly in November 2023, Samsung, another technology giant, announced the launch of a VR headset in 2024. The product will be equipped with Qualcomm's XR series chipset and excellent-grade display panels.

Expansion into new markets will prove beneficial for the industry players

The global head mounted display industry players can benefit by launching their products into new and emerging markets. The demand for VR headsets is especially high across the globe. The change in consumer lifestyle and the growing demand for online gaming have been critical to changing the ways in which consumers operate electronic gadgets. Additionally, the rising awareness about the existence of highly advanced head mounted displays for commercial use will further improve the industry’s revenue trends.

Head Mounted Display (HMD) Market: Challenges

Higher cost of HMDs may challenge the market expansion rate

The global head mounted display (HMD) market will be challenged by the relatively higher cost of HMD devices and accessories. Head mounted display systems are highly advanced engineering devices and are powered by novel software systems. The average cost of a head-mounted display starts from USD 500 and may go beyond USD 5000 depending on the overall features of the tool.

Head Mounted Display (HMD) Market: Segmentation

The global head mounted display (HMD) market is segmented based on technology, component, application, connectivity, and region.

Based on the technology, the global market divisions are virtual reality (VR) and augmented reality (AR). In 2023, the highest growth was witnessed in the virtual reality (VR) segment driven by the increased demand for VR devices across industries including gaming and entertainment. Moreover, the growing launch of new and highly advanced virtual reality headsets with affordable pricing may promote a higher adoption rate during the coming years. In 2023, the global video gaming industry was valued at over USD 243 billion.

Based on components, the global head mounted display industry is divided into sensors, displays, controllers, lenses, cases & connectors, controllers, processors & memory, cameras, and others.

Based on the application, the global market divisions are commercial, consumer, energy, healthcare, aerospace & defense, automotive, and others. In 2023, the highest growth was registered in the commercial segment of the head-mounted display market due to the extensive use of the tool in the gaming and entertainment segment. The healthcare industry is a fast-emerging segment and will generate significant revenue for the HMD players. The rising adoption of IT solutions in healthcare will provide higher growth momentum. The global healthcare IT industry is valued at over USD 395 billion.

Based on connectivity, the head-mounted display industry divisions are tethered HMD (wired) and standalone HMD (wireless).

Head Mounted Display (HMD) Market: Report Scope

Head Mounted Display (HMD) Market: Regional Analysis

Asia-Pacific to emerge as the highest revenue-generating segment by 2032

The global head mounted display (HMD) market is projected to generate high growth opportunities in Asia-Pacific. The growing demand for HMDs in the regional video gaming industry as well as the presence of a large and growing consumer base help the regional market generate considerable revenue. In April 2024, DPVR, a leading commercial company, announced the launch of a novel E4 Arc VR headset equipped with Ultraleap’s Leap Motion Controller 2 hand-tracking camera. The device has been developed specially for VR arcade game makers, 3D designers, and corporate training. In June 2024, Apple announced the launch of Vision Pro in major Asian economies including Japan, China, and Singapore. The product will be priced at USD 3499. In January 2024, Japan-based Sony Corporation announced the development of a Spatial Content Creation System featuring a high-grade XR Head-Mounted Display along with controllers specially dedicated to interacting with 3-dimensional objects.

North America is projected to deliver significant results in the head mounted display industry during the projection period. The regional demand is driven by the growing use of HMDs in military segments as well as higher commercial demand. In August 2023, Varjo, a leading developer of VR/XR software and hardware, announced that the US Army has selected the company’s HMD technology for the Virtual Collective Trainer (RVCT) Air Program.

Head Mounted Display (HMD) Market: Competitive Analysis

The global head mounted display (HMD) market is led by players like:

• Sony Corporation
• Vuzix Corporation
• Daqri LLC
• Google LLC
• Microsoft Corporation
• Huawei Technologies Co. Ltd
• Avegant Corporation
• Meta Platforms Inc. (Oculus VR)
• LG Electronics Inc.
• Seiko Epson Corporation
• Samsung Electronics Co. Ltd.
• Lenovo Group Limited
• Magic Leap Inc.
• HTC Corporation
• Apple Inc.

The global head mounted display (HMD) market is segmented as follows:

By Technology

• Virtual Reality (VR)
• Augmented Reality (AR)

By Component

• Sensors
• Displays
• Controllers
• Lenses
• Cases & Connectors
• Controllers
• Processors & Memory
• Cameras

By Application

• Commercial
• Consumer
• Energy
• Healthcare
• Aerospace & Defense
• Automotive

 By Connectivity

•  Tethered HMD (Wired)
•  Standalone HMD (Wireless)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa