CAGR: 43.4%Current Market Size: USD 5.2 BillionFastest Growing Region: Europe
Largest Market: North AmericaProjection Time: 2021-2028Base Year: 2020
The global head-mounted display market is expected to grow from USD 5.2 Billion in 2020 to USD 92.7 Billion by 2028, at a CAGR of 43.4%during the Projection period 2021-2028. This growth of the head-mounted display market is significantly driven by an upsurge in the adoption of augmented reality (AR) and virtual reality (VR) technologies along with the rising investments in the development of head-mounted displays.
A head-mounted display or HMD is a computer display device that is worn on the head as part of the helmet. This system has a small screen display in front of each eye which effortlessly presents information in front of the eyes of a user. Display streams in images, data, and other information in front of each of the wearer's eyes. For instance, a number of HMDs such as HTC Vive or Oculus Rift have been displayed over both of the users' eyes. Most of the time, HMDs are multimedia or virtual reality device designed mainly for entertainment purposes. However, some models, have real-world applications, such as being used as a part of the heads-up display in the number of special weapon systems.
The innovative HMDs integrate motion sensors for determining movement and direction to deliver context-sensitive geographic information or as the interface to an immersive virtual reality application.
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Market Dynamics
Drivers:
There is significant growth in the acceptance of AR and VR technologies. For instance, these technologies have become an essential part of the entertainment and gaming industry, along with emerging applications in several industries such as health care, education, and marketing. In addition to this, the introduction of social distancing norms during the COVID-19 pandemic has encouraged the adoption of digital tools, leading to the proliferation of AR & VR technologies. However, the majority of AR & VR devices are head-mounted displays; hence, an upsurge in the adoption of AR & VR technologies drives the growth of the head-mounted display market.
A rise in investments over the development of HMDs, along with their usage in a number of applications worldwide has been observed in past few years. Different organizations including Facebook Corporation, Qualcomm, Inc., Comcast Ventures, Intel Corporation, Alphabet, Inc., and Samsung Group are heavily investing in the HMD industry. These investments in the development of head-mounted displays are fueling the growth of the global market size.
Restraints:
Lack of standardization in the head-mounted display industry creates compatibility issues among the products from different sellers, affecting the user experiences. A number of HMDs and eyeglasses manufacturers are emphasizing making products more informative and augmenting user experience. However, due to the lack of standardization, different products in the industry have different quality and specifications, restraining the growth of the market.
Opportunities:
The demand for improving gaming experience has led to the high penetration of HMDs in video games. In addition, the spending across the video games sector has seen an upsurge owing to the covid-19 pandemic. Also, leading gaming companies are rapidly introducing AR and VR games. Further, more people are playing games, looking for easier ways to access games, and generating demand for immersive entertainment. The aforementioned factors have created lucrative growth opportunities for the application of head-mounted displays in the video gaming industry.
Challenges:
The lack of awareness regarding a range of applications in stereoscopic imaging and potential hazards caused by large wearable displays has posed a number of challenges to the growth of the global head-mounted display market. The aforementioned factors may hamper demand for head-mounted displays in defense-based applications among others. This is one of the challenges for the growth of the market.
Segmentation Analysis
The global head-mounted display market has been segmented based on product type, component, connectivity, technology, application, and regions.
By Product Type
By Component
By Connectivity
By Technology
By Application
By Regional Analysis
The regions analyzed for the head-mounted display market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The North American region dominated the Head Mounted Display market and held the 35.2% share of the market revenue in 2020.
Key Industry Players Analysis
Key market players are focusing on product launches
The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global Head Mounted Display industry.
For instance, in October 2020, Vuzix Corporation, a supplier of Smart Glasses and Augmented Reality (AR) technology & products entered into an agreement with its medical partner located in the United States, for building a customized head-mounted display system for assisted medical cancer surgery.
In November 2018, HTC Vive launched several enterprise-focused products. This launch comprises developer tools, a new standalone mobile VR headset, and a collaboration app that promises to connect with remote employees.
Latest Development
Report Metrics
Report Attribute |
Details |
Projection period |
2021-2028 |
Base year considered |
2020 |
CAGR (%) |
43.4% |
Market Size |
5.2 Billion in 2020 |
Projection unit |
Value (USD) |
Segments covered |
Product Type, Component, Connectivity, Technology, Application, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Sony, Google, Microsoft, Samsung, Oculus, HTC, Seiko Epson, Lenovo, Magic Leap, and Vuzix among others. |
By Product Type |
|
By Component |
|
By Connectivity
|
|
By Technology |
|
By Application |
|
Regional scope |
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Scope of the Report
Global Head Mounted Display Market by Product Type:
Global Head Mounted Display Market by Component:
Global Head Mounted Display Market by Connectivity:
Global Head Mounted Display Market by Technology:
Global Head Mounted Display Market by Application:
Global Head Mounted Display Market by Region:
The market value of the Head Mounted Display Market in 2020 is $ 5.2 Billion.
Head-mounted segment is the most influencing segment in the Head Mounted Display market.
North America held the major share in the market over the Projection period 2021- 2028.
The leading market players active in the global Head Mounted Display market are Sony, Google, Microsoft, Samsung, Oculus, HTC, Seiko Epson, Lenovo, Magic Leap, Vuzix among others.
Product Type, Component, Connectivity, Technology, Application, and Regions are the six segments of the report.
Yes, the market includes qualitative and quantitative insights for COVID-19 impact on the Head Mounted Display market.
The head-mounted display market is studied from 2020 - 2028.
Political- The Head Mounted Display Market is funded by government which is boosting the growth of the market. Several rules and regulations are also being promoted by the government to boost the growth of the market. Policies which are being framed to boost the growth of the market are being implemented by the government.
Economic- A rise in investments over the development of HMDs, along with their usage in a number of applications worldwide has been observed in past few years. Different organizations including Facebook Corporation, Qualcomm, Inc., Comcast Ventures, Intel Corporation, Alphabet, Inc., and Samsung Group are heavily investing in the HMD industry. These investments in the development of head-mounted displays are fueling the growth of the global market size.
Social- North America holds tremendous potential for head-mounted display production and demand. The number of industry verticals in this region such as military and defense, healthcare, and safety services is rapidly adopting head-mounted display systems. In addition to this, the region is seeing expanding demand for flexible, portable, and wearable computing devices along with the rising innovations and investments in HMDs by market players. The European region is likely to register significant growth during the Projection period. This is mainly due to the flourishing of the medical and healthcare sector. In addition to this, the region is seeing technological advancements with enhanced technological infrastructure, creating lucrative growth opportunities for the market.
Technological- There is significant growth in the acceptance of AR and VR technologies. For instance, these technologies have become an essential part of the entertainment and gaming industry, along with emerging applications in several industries such as health care, education, and marketing. In addition to this, the introduction of social distancing norms during the COVID-19 pandemic has encouraged the adoption of digital tools, leading to the proliferation of AR & VR technologies. However, the majority of AR & VR devices are head-mounted displays; hence, an upsurge in the adoption of AR & VR technologies drives the growth of the head-mounted display market.
Environmental- The products and materials used in manufacturing of Head mounted display are non-biodegradable. But these objects need special care in manufacturing and biodegradable products needs to be used so that they do not pollute the environment. Several companies are working towards this innovation and are coming up with such objects.
Legal- Vuzix Corporation, a supplier of Smart Glasses and Augmented Reality (AR) technology & products entered into an agreement with its medical partner located in the United States, for building a customized head-mounted display system for assisted medical cancer surgery. HTC Vive launched several enterprise-focused products. This launch comprises developer tools, a new standalone mobile VR headset, and a collaboration app that promises to connect with remote employees.
List of Table
List of Figures