Head-Mounted Display Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 7.5 Billion |
| Market Size (2029) | USD 26.40 Billion |
| CAGR (2024 - 2029) | 28.62 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Head-Mounted Display Market Analysis
The Head-Mounted Display Market size is estimated at USD 7.5 billion in 2024, and is expected to reach USD 26.40 billion by 2029, growing at a CAGR of 28.62% during the forecast period (2024-2029).
- Head-mounted displays are cucial for AR (Augmented Reality), VR (Virtual Reality) applications across industries such as gaming, entertainment, education, healthcare, and aerospace and defense. As AR/VR use cases expand, the demand for high-performance head-mounted displays is increasing.
- Head-mounted displays offer immersive experiences, making the displays popular among gaming enthusiasts. The growing demand for gaming content and platforms is a significant driver for head-mounted display sales. According to Circana, over 40% of United States gamers, regardless of platform, were ready to shell out between USD 41 and USD 60 for a video game. In July 2024, United States retail gaming revenue reached USD 4.77 billion.
- Furthermore, the global military sector's increasing adoption of head-mounted displays (HMDs) is fueling market expansion. These latest technologies equip pilots with vital information on the helmet visors, significantly boosting situational awareness, speeding up response times, and lightening their workload to secure mission success. Additionally, HMDs' integration with weapon systems enables users to aim more precisely and engage targets more efficiently. Consequently, as the defense sector expands, so does the demand for HMDs, propelling the market's growth.
- Advanced head-mounted displays (HMDs), especially those with AR (Augmented Reality) and VR (Virtual Reality) capabilities, are expensive. This limits the head-mounted displays (HMDs) adoption, especially in cost-sensitive markets like education and training. In addition, extended use of head-mounted displays (HMDs) can cause eye strain, motion sickness, and discomfort. These health concerns deter long-term use, particularly in professional settings. The ergonomics of many HMDs are still a challenge. Bulky designs discourage adoption, especially in industries where users must wear these devices for extended periods.
- Macroeconomic factors like the uneven development of digital infrastructure globally are significant issues. High-speed internet, 5G, and edge computing are essential for head-mounted displays (HMDs), especially for applications involving AR (Augmented Reality) and VR (Virtual Reality). While advanced economies have the necessary infrastructure to support these technologies, many developing regions lack robust digital networks, reducing the accessibility and performance of head-mounted displays (HMDs) in healthcare and industrial applications.
Head-Mounted Display Market Trends
Gaming Segment is Expected to Witness a Significant Growth
- Head-mounted displays (HMDs) with Virtual Reality (VR) capabilities provide gamers with immersive, 360-degree experiences that traditional consoles or screens cannot match. VR (Virtual Reality) gaming allows users to feel like the users are inside the game, driving the demand for Head-mounted displays (HMDs) in both consumer and professional gaming spaces.
- Augmented Reality (AR) gaming, driven by mobile applications like Pokemon Go, has increased consumer interest in Augmented Reality headsets and smart glasses. While many Augmented Reality (AR) games are mobile-based, the future potential for more immersive AR gaming using HMDs is encouraging market growth. In addition, the rise of esports and gaming-related content on YouTube promotes head-mounted displays (HMDs) for competitive gaming and for viewers who want to experience gaming more immersively.
- The growing popularity of multiplayer and social Virtual Reality (VR) gaming platforms, such as Metas's Horizon Worlds or VRchat, encourages users to adopt head-mounted displays to interact with other players in a fully immersive virtual environment. This social aspect of gaming increases the head-mounted displays (HMDs) demand as users seek more interactive experiences.
- Also, the worldwide surge in AR and VR gamers has broadened the market's landscape. NewGenApps, a specialist in Artificial Intelligence, Machine Learning, Big Data Analytics, and AR/VR solutions, projects that the global user base for AR and VR games will reach 216 million by 2025.
- Furthermore, the advancements in gaming technology, such as next-generation graphics engines (for instance, Unreal Engine 5), are making Virtual Reality (VR) and Augmented Reality (AR) games more visually appealing. These innovations push gamers towards head-mounted displays (HMDs) to experience these high-fidelity environments, driving demand for devices with better resolution, lower latency, and improved graphics. HMDs facilitate a virtual reality (VR) gaming experience, delivering realistic interactions that deepen players' immersion in the gaming universe.
Asia Pacific is Expected to Hold a Significant Market Share
- Countries in the Asia Pacific (APAC) region, including China, Japan, and South Korea, boast significant gaming markets. With a vast, tech-savvy population, the region shows a heightened engagement in VR and AR gaming, leading to a surge in the adoption of head-mounted displays (HMDs).
- Furthermore, the widespread popularity of virtual-reality-based gaming platforms in the region further amplifies the demand for HMDs. As AR/VR technology continues to evolve, the APAC region is poised to remain at the forefront of its head-mounted displays (HMD) adoption, shaping the future of immersive digital experiences.
- The increasing penetration of smartphones, smart devices, and wearables in the Asia Pacific contributes to the demand for head-mounted displays (HMDs). Consumers in the region are highly receptove to new technology trends, with a strong inclination towards immersive entertainment, leading to growth in the head-mounted displays (HMD's) market. In addition, the growing interest in immersive learning is driving demand for HMDs in the region's educational institutions and corporations.
- The deployment of 5G networks across the Asia Pacific, especially in China, South Korea, and Japan, enables faster and more stable AR/VR experiences. With reduced latency and higher bandwidth, 5G is enhancing the performance of head-mounted displays (HMDs), particularly in the gaming and entertainment industry. This improved infrastructure pushes demand for head-mounted displays (HMDs) as 5G adoption accelerates across Asia Pacific.
- Several countries in the region, such as China and Japan, have introduced policies and funding to promote the development of VR and AR technologies in various sectors like healthcare and education.
- In Septmebr 2024, SparkVR introduced augmented reality (AR) and virtual reality (VR) educational technology solutions in schools and universities across India. As reported by the Indian tech news outlet Inc42, these technologies develop 'highly' interactive and lifelike training modules. With SparkVR's content accessible on VR headsets, students can immerse themselves in a virtual environment, enhancing their engagement with the associated learning topics.
Head-Mounted Display Industry Overview
The head-mounted display market is highly fragmented, with global conglomerates and specialized players operating across various segments. While several large multinational companies dominate certain high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the wide range of applications for head-mounted display, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the turbomolecular pump market include Sony Corporation, Zebra Technologies Corporation, Oculus VR LLC (Meta Platform Technologies), Magic Leap, Inc., Varjo Technologies. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
To succeed in the head-mounted display market, companies must prioritize innovation, especially in AR (Augmented Reality) and VR (Virtual Reality) technologies. As industries increasingly demand advanced solutions, the development of user-friendly head-mounted display could become a significant differentiator. Additionally, expanding service offerings and enhancing customer support will be crucial for maintaining long-term relationships and securing repeat business. Companies that invest in emerging markets and adapt their products to regional needs are likely to gain a competitive advantage in this fragmented market.
Head-Mounted Display Market Leaders
-
Sony Corporation
-
Zebra Technologies Corporation
-
Oculus VR LLC (Meta Platform Technologies)
-
Magic Leap, Inc.
-
Varjo Technologies
*Disclaimer: Major Players sorted in no particular order
Head-Mounted Display Market News
- August 2024: Apple has developed an innovative head-mounted design featuring adjustable sidewall structures. These sidewalls darken when the user views content and revert to transparency when not in use. This head-mounted device boasts adjustable sidewall structures that seamlessly switch between opaque, transparent, and partially transparent modes. The opaque mode prevents ambient light from entering the head-mounted device, ensuring users remain unaware of their surrounding environment. This feature enhances the user's immersive experience. Additionally, the device incorporates front-facing cameras and other sensors to monitor and gather information about its surrounding environment.
- January 2024: Sony Corporation has introduced its development of an advanced spatial content creation system. This system features an XR head-mounted display, boasting high-performance 4K OLED Microdisplays*2 and a video see-through function. Accompanying the display are controllers designed for intuitive 3D object interaction and accurate pointing. Targeting creators, this system is set to elevate the standards of 3D content creation. Furthermore, Sony is set to partner with diverse developers of 3D production software, spanning both entertainment and industrial design sectors.
Head-Mounted Display Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Augmented Reality (AR) and Virtual Reality (VR)
5.1.2 Increasing Use in Military and Defense
5.2 Market Restraint
5.2.1 Health and Safety Concerns
6. MARKET SEGMENTATION
6.1 By Technology
6.1.1 Augmented Reality (AR)
6.1.2 Virtual Reality (VR)
6.1.3 Extended Reality (XR)
6.2 By Connectivity
6.2.1 Wired (Tethered HMD)
6.2.2 Wireless (Standalone HMD)
6.3 By Application
6.3.1 Aerospace and Defense
6.3.2 Gaming, Media and Entertainment
6.3.3 Healthcare and Medical Devices
6.3.4 Education
6.3.5 Others
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Sony Corporation
7.1.2 Zebra Technologies Corporation
7.1.3 Oculus VR LLC (Meta Platform Technologies)
7.1.4 Magic Leap, Inc.
7.1.5 Varjo Technologies
7.1.6 Lenovo Corporation
7.1.7 Pimax Technologies
7.1.8 Samsung Electronics Co. Ltd
7.1.9 Realwear Inc.
7.1.10 HTC Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Head-Mounted Display Industry Segmentation
Head Mounted Displays (HMDs) are devices positioned directly in front of one or both of the user's eyes via a head mount. This setup allows digital content to be superimposed onto the user's field of vision. The study tracks the revenue accrued through the sale of head-mounted display types by various players globally. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market.
The head-mounted display market is segmented by technology (AR, VR, and XR), connectivity (wired (tethered HMD), and wireless (standalone HMD)), application (aerospace and defense, gaming, media and entertainment, healthcare and medical devices, education, and others), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Technology | |
| Augmented Reality (AR) | |
| Virtual Reality (VR) | |
| Extended Reality (XR) |
| By Connectivity | |
| Wired (Tethered HMD) | |
| Wireless (Standalone HMD) |
| By Application | |
| Aerospace and Defense | |
| Gaming, Media and Entertainment | |
| Healthcare and Medical Devices | |
| Education | |
| Others |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Head-Mounted Display Market Research FAQs
How big is the Head-Mounted Display Market?
The Head-Mounted Display Market size is expected to reach USD 7.5 billion in 2024 and grow at a CAGR of 28.62% to reach USD 26.40 billion by 2029.
What is the current Head-Mounted Display Market size?
In 2024, the Head-Mounted Display Market size is expected to reach USD 7.5 billion.
Who are the key players in Head-Mounted Display Market?
Sony Corporation, Zebra Technologies Corporation, Oculus VR LLC (Meta Platform Technologies), Magic Leap, Inc. and Varjo Technologies are the major companies operating in the Head-Mounted Display Market.
Which is the fastest growing region in Head-Mounted Display Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Head-Mounted Display Market?
In 2024, the Asia Pacific accounts for the largest market share in Head-Mounted Display Market.
What years does this Head-Mounted Display Market cover, and what was the market size in 2023?
In 2023, the Head-Mounted Display Market size was estimated at USD 5.35 billion. The report covers the Head-Mounted Display Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Head-Mounted Display Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Head-Mounted Display Industry Report
Statistics for the 2024 Head-Mounted Display market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Head-Mounted Display analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
