Head Mounted Display (HMD) Market Size, Share & Trends

Updated on : October 23, 2024

Head Mounted Display (HMD) Market Size & Share

[246 Pages Report] The Head-mounted Display (HMD) Market Size is projected to reach USD 26.4 Billion by 2029 from USD 7.5 Billion in 2024 , growing at a CAGR of 28.8% during the forecast period from 2024 to 2029

Growing investments by significant key players in the development of HMD, availability of low-cost HMDs, growing demand for AR and VR, technological advancements and growing digitalization, and Affordable microdisplay prices are some of the major factors driving the Head-mounted Display (HMD) industry growth globally.

Head Mounted Display (HMD) Market Size Forecast to 2029

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Head Mounted Display (HMDs)  Market & Trends Dynamics

Driver: Growing investments by significant key players in the development of HMD

The Head Mounted Display (HMDs) Market Growth is experiencing a dynamic surge driven by substantial investments from key industry players. Notably, Meta, a technology powerhouse, has committed over $21 billion to its Reality Labs division, underscoring its dedication to advancing VR technology. This significant financial boost is propelling the development of cutting-edge headsets and VR software, positioning Meta at the forefront of immersive experiences. Microsoft, another major contributor to the HMD landscape, is channeling substantial resources into its HoloLens series, with investments totaling billions. These funds are strategically allocated to drive advancements in augmented reality (AR) applications, particularly in enterprise solutions, showcasing Microsoft's commitment to shaping the future of mixed-reality experiences.

Restraint: Lack of design standardization for HMD design

The challenge in the Head-Mounted Display (HMD) market stems from the absence of standardized designs, posing hurdles for both manufacturers and users. The diverse designs across HMD products make it tough to establish consistent specifications, leading to interoperability issues. This lack of design standardization complicates the seamless integration of different HMD models and their compatibility with other technologies. Beyond the complexity introduced, it directly impacts the user experience, making it challenging for users to switch between different HMD models due to the absence of uniform designs.

Opportunity: Growing demand for lightweight HMDs and portable devices

In the dynamic world of Head-Mounted Displays (HMDs), there's a notable opportunity to meet the growing demand for lightweight and portable devices. Consumers now prioritize devices that are not only comfortable but also easy to carry. Recent advancements in the HMD market show a clear focus on creating HMDs that are compact and lightweight, offering users enhanced comfort for longer usage. A key development is the introduction of standalone VR and AR devices that operate without the need for external hardware, giving users more freedom to move around. Devices like the Oculus Quest series exemplify this trend, providing an all-in-one solution without the hassle of external sensors or connections.

Challenge: Lack of awareness

Ensuring widespread adoption of emerging technologies requires a comprehensive understanding of their specifications and applications. Unfortunately, there is a notable lack of awareness, particularly in developing countries, regarding AR and VR HMDs. Bridging this awareness gap is crucial for fostering acceptance among users. Companies play a pivotal role in this process by actively promoting the benefits of these products. Modern HMDs, equipped with advanced features, offer organizations a cost-effective entry point to unlock the potential of AR and VR technologies in their workflows and processes. By emphasizing the practical applications and value proposition of these HMDs, companies can contribute to the broader adoption of immersive technologies.

Head Mounted Display (HMDs) Market Ecosystem

The major players in the Head Mounted Display (HMDs) Market size with a significant global presence include Meta (US), Sony (Japan), Microsoft (US), Samsung (South Korea), and Magic Leap, Inc. (US). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint.

Head Mounted Display (HMDs) Market Ecosystem

Head Mounted Display (HMD) Market Segmentation

Display to account for the largest share of the Head-mounted Display (HMD) market during the forecast period.

The display market is expected to dominate the HMD market share during the forecast period. This growth is being driven by the increasing demand for HMDs in consumer applications, technological advancements in display technologies, and the decreasing cost of displays. Displays are essential components of HMDs, as they provide the visual experience that users want. Technological advancements in display technologies, such as the development of high-resolution displays and 3D viewing capabilities, are making HMDs more immersive and realistic. Additionally, the decreasing cost of displays is making HMDs more affordable and accessible to a wider range of consumers.

The increasing demand for HMDs in consumer applications, such as gaming, entertainment, and education, is driving the growth of the display market. Consumers are increasingly demanding high-quality displays that can provide an immersive and realistic experience. Additionally, the growing popularity of AR devices, which rely on displays to overlay digital information onto the real world, is further fueling demand for displays.

Consumer application to register the largest share during the forecast period.

The consumer application is expected to continue to lead the market for VR-based HMDs due to the increasing use of VR-based HMDs in gaming. HMDs are light in weight and head-worn display devices are available for playing 3D games. This makes them a more immersive and engaging way to play games than traditional gaming consoles or PCs. Companies such as Meta (US), HTC (Taiwan), and SONY (Japan) are manufacturing VR headsets for gaming. These headsets offer a variety of features, such as high-resolution displays, motion tracking, and haptic feedback. They also offer a wide range of games, including action games, puzzle games, and sports games. VR-based HMDs are also being used for other consumer applications, such as watching movies and TV shows, shopping, and education. However, gaming is expected to remain the most popular application for VR-based HMDs in the near future.

Head Mounted Display (HMD) Market Regional Analysis

Asia Pacific is expected to register the highest growth during the forecast period.

The HMD market in Asia Pacific (APAC) is anticipated to experience the fastest growth due to the widespread adoption of AR and VR technologies in countries like China, Japan, and India. The region's large and expanding population, rising interest in gaming and entertainment, and the availability of cost-effective and lightweight HMDs are all contributing to this growth. Additionally, the ongoing development of consumer applications for HMDs in gaming, entertainment, education, and retail is fueling market expansion. The presence of prominent businesses like HTC Corporation, Sony Corporation, Lenovo Group Ltd., Acer Inc., Xiaomi, Inc., and LG Electronics Inc. in APAC is also a significant factor. These businesses are actively investing in research and development, further propelling the market's expansion.

Head Mounted Display (HMD) Market Statistics by Region

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Top Head Mounted Display (HMD) Companies: Key players

The major players in the Head-mounted Display (HMD) Companies include

• National Instruments Corporation (US),
• Siemens Digital Industries Software (US),
• Brüel & Kjær (Denmark),
• Axiometrix Solutions (US), and
• HEAD Acoustics GmbH (Germany). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.

Head Mounted Display (HMD) Market Report Scope

Head Mounted Display (HMD) Market Highlights

The study segments the HMD market based on type, technology, component, product type, connectivity, and application at the regional and global levels.

Recent Developments in Head Mounted Display (HMD) Industry

• In December 2022, PICO launched the PICO 4 Enterprise, an all-in-one VR headset to empower growth in healthcare, education, training, and productivity for businesses. It builds on the success of the consumer-focused PICO 4 with next-gen features for professionals.
• In July 2022, DPVR launched a new 4G / 5G module for their all-in-one VR headsets tailored for the global enterprise market. It enables sectors like education, training, healthcare, and conferences to seamlessly integrate VR headsets for remote or mobile use, reflecting DPVR's dedication to advancing VR technology in diverse industries.
• In March 2021, Seiko Epson  Corporation revealed advancements in the AR glasses Moverio BT-40 and BT-40S, incorporating Si-OLED technology to broaden the field of view with a full HD 1080p display resolution. The improvements also include enhanced connectivity and comfort features.
• In October 2020, Meta introduced the Oculus Quest 2, a versatile headset capable of functioning independently with its internal Android-based operating system or seamlessly integrating with Oculus-compatible VR software when connected to a desktop computer.
• In February 2019, Microsoft unveiled HoloLens 2, a wearable holographic computer, accompanied by fresh mixed-reality services and applications tailored for businesses. Delivering an immersive Augmented Reality (AR) experience, the HoloLens 2 facilitates hands-on tasks by providing step-by-step holographic instructions.

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