Global Head Mounted Display Market Research Report: Forecast (2024-2030)

Product Definition

Head-mounted displays (HMDs) are small displays or projection technology embedded with eyeglasses or mounted on a helmet. Heads-up displays are a type of HMD that does not block the user’s vision but superimposes the image on the user’s view of the real world. HMDs deploy technologies such as Virtual Reality (VR), Mixed Reality (MR), and Augmented Reality (AR) to superimpose digital content on the field of vision of a user to provide an immersive experience

Market Insights & Analysis: Global Head Mounted Display Market (2024-30):

The Global Head Mounted Display Market is estimated to grow at a CAGR of around 33.81% during the forecast period, i.e., 2024-30. In 2024, the global head-mounted display market size was estimated to be around USD 12.02 billion. The growth of the market is primarily attributed to rising adoption from the aerospace and defense industry for training purposes, integration of immersive reality in the gaming industry, and gradual growth in demand from construction and healthcare.

During 2024-30, the penetration of 5G in Western economies along with countries like China, South Korea, India, Japan, etc., is soaring. Companies in healthcare, construction, manufacturing, aerospace, etc., are using AR and VR technologies to develop virtual stores on how a product will look in real-time using high-speed internet. Also, online gaming is expected to be one of the key beneficiaries of 5G and is increasingly integrating AR and VR-based solutions to enhance customer experience. The demand for head-mounted displays from the construction industry is in its nascent stage in 2024. However, it is expected to skyrocket as the companies are working towards tracking the equipment effectiveness and output, expediting emergency response, and identifying the bottlenecks to optimization of labor productivity and safety in countries like the US, Japan, South Korea, Germany, etc. 

Additionally, the sector is witnessing an influx of start-ups offering innovative headsets, and eyeglasses for industries such as gaming, medical, automobiles, industrial manufacturing, Holo-Light, etc.  MarkNtel Advisors has analyzed 150+ start-ups in this space which cumulatively have raised more than USD 1.4 billion from investors during 2019-2024. These prominent start-ups include Lynx, Solos, AutoVRse, Sandbox, Vive, etc. As a result of these developments, the global head mounted display market size is expected to exceed USD 69 billion by 2030.

Global Head Mounted Display Market Driver:

Exponential Growth in Demand from Defense Forces: The militaries across the globe are gradually integrating the latest technologies to ensure a competitive edge, reduce costs, and provide best-in-class training to their professionals. Moreover, the modernization of defense forces across the globe to ensure agility, improved effectiveness, flexibility in operations, and increased survivability is boosting the integration of head mounted displays for training and battlefield superiority. Countries such as the USA, India, Israel, China, Russia, EU, etc., have been actively contracting defense equipment suppliers for hmd displays. With the growth in electronic warfare infrastructure, these countries are increasingly relying on such technologies which are further integrated with the combat vehicles and aircraft.

• In 2024, the US Air Force signed a contract with Vuzix to provide augmented reality based head mounted displays   
• In 2023, Collins Elbit Vision Systems (a joint venture of Raytheon and Elbit Systems) was contracted by the US Navy to provide head mounted displays. In addition, the sanctioned USD16 million to Collins Elbit Vision Systems to upgrade its existing head mounted equipment
• In 2021, the Indian army announced its plan to procure more than 550 augmented reality based head mounted displays to boost the capabilities of its shoulder-fired weapons

Global Head Mounted Display (HMD) Market Challenge:

High Cost of Research & Development Involved: The development of Head Mounted Displays for applications like defense, gaming, healthcare, etc., involves high research & development expenditure. Companies such as Apple, Sony, META, etc., intended to provide enhanced user experience via their hmd display users across industries by investing a considerable amount in designing. So, their system integrators and suppliers are required to provide best-in-class products such as displays, sensors, processors, etc. Also, the prototyping, miniaturization, and integration of these components to provide the desired output is a complex task that requires considerable resources and highly skilled manpower.

Moreover, the raw material and the manufacturing ecosystem to develop these components are majorly concentrated in Eastern Asian countries such as China, Japan, South Korea, Taiwan, and some parts of Southeast Asia which is emerging as the next hotspot for geopolitical tensions. So, any volatility in the commodity prices directly adds up to the cost of components.    

As the high cost of research and development is factored in, the cost of the head mounted display for the end users also goes up.         

Global Head Mounted Display (HMD) Market Trend:

Evolution of Display Technology in Head-Mounted Displays: The display technologies for head mounted displays have been continuously evolving. The market has undergone a transition from LCD to LED, and further to OLED and OLED microdisplays. The new display technologies such as QD-OLED i.e. the conjunction of Quantum Dots and OLED displays provide improved brightness, advanced color contrast, and greater lifespan is also nearing the horizon. During 2021-24, the companies offering head mounted displays have moved toward OLED technology. OLED-based microdisplay have found applications across consumer and defense applications. Leading display manufacturers such as LG Display, Sony, and Samsung Display have been continuously working on innovation of displays for hmd displays offering advanced picture resolution. Sony has been at the forefront of offering micro OLED displays.

In 2024, Sony launched a spatial content creation system, which includes hmd display that had 4K OLED Microdisplays. The 4K OLED Microdisplay will provide high image quality to the users.  The company is also one of the preferred suppliers of micro OLED displays to Apple Vision pro head mounted display. With the commercialization of the products of Samsung Display and LG Display, Sony is expected to see the other two companies supplying micro OLED displays to Apple.  Also, OLEDWorks was offered a contract worth USD 9 million by the US Army to develop OLED microdisplays for consumer and military applications.

Global Head Mounted Display Market (2024-30): Segmentation Analysis

The Global Head Mounted Display Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on End Users:

• Consumer
  • Video Games
  • Life Events
  • Video Entertainment
• Enterprise
  • Aerospace and Defense
  • Healthcare
  • Construction
  • Automotive
  • Energy
  • Retail
  • Education
  • Others

In 2024, the global head mounted display market was dominated by the consumer segment, grabbing a market share of over 50%. The considerably high share of the consumer segment was led by the growing sales of head mounted displays in the gaming segment. In 2024, the global video games market size was estimated to be around USD 255 billion. The market was majorly dominated by mobile gaming with a market share of more than 55%. The adoption of head mounted displays by gamers in this category is on the rise. Companies like Apple, Meta, Google, etc., are increasingly offering their products in this category to leverage the explosive growth in the number of gamers. Meta has already partnered with Xbox, Lenovo, and Asus to manufacture head mounted displays based on its operating system viz. Meta Horizon. Google has forged a partnership with Samsung for an extended reality headset. The headset will be based on Qualcomm’s Snapdragon XR2 Plus Gen 2 chipset and is slated to be launched in late 2024. The headset will provide gamers with sophisticated features such as higher processing power, robust graphics capabilities, and support for advanced eye tracking and gesture controls. Asia Pacific is expected to be the hotbed for these companies, as the gaming industry is proliferating at an astronomical pace in the region.

However, the defense application is expected to witness robust growth during 2024-30. The growth in the integration of head mounted displays for pilot’s simulator-based training, modernization of defense forces, the advent of stealth 5^th generation aircraft, etc., are expected to stimulate the demand for advanced head mounted displays. The US, followed by China will be the key hotspot for the head mounted display providers for defense forces. Both countries will continue to maintain their dominance with the cumulative market share exceeding 50% of the global defense application’s spending on head mounted displays during 2024-2030.

Global Head Mounted Display Market Regional Projection

Geographically, the Global Head Mounted DisplayMarket expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

In 2024, North America dominated the global head mounted display market with the market share exceeding 50%. The US completely overpowered the global head mounted display on account of stringent norms and complex procedures involved in technology transfer by the companies, modernization of its defense forces is resulting in an increased number of contracts for advanced equipment like head mounted displays. Moreover, the growing number of F-35 and F-22 Raptors in its defense forces is likely to boost the demand for head mounted display, as it is the core to the pilot operations. For instance, in 2023, the US Navy contracted Lockheed Martin to provide head mounted displays for its F-35 aircraft for USD175 million. In 2022, the company won the contract of around USD350 million to provide head mounted displays for F-35s. In 2021, the US military signed a contract with Microsoft worth USD22 billion to procure 120,000 military-grade AR-powered headsets over the next 10 years.

Moreover, the gaming industry of the US is also expected to soar at a CAGR of more than 10% during 2024-2030.  The penetration of AR and VR in the US gaming industry is expected to surge at a CAGR of around 12.15%. Therefore, driven by mounting acceptance by gamers, the sales of head mounted displays from the gaming industry are expected to outperform other countries in Europe and the Asia Pacific.

Global Head Mounted Display Industry Recent Development:

• 2024: Sony in collaboration with Siemens has announced to launch virtual reality-based head mounted display. The solution is targeted at industries to boost product engineering and designing capabilities
• 2023: Meta partnered with Tencent Holdings to sell its Virtual Reality headset in China. Tencent will have the exclusive rights to offer Meta headsets in China, beginning in the last quarter of 2024
• 2023: Taiwanese medtech firm viz. Sunglasses raised USD6.5 million in the pre-seed round to expand its footprints in AR-based surgical navigation systems. The company plans to use funds for research and development of its navigation system employing Head-Mounted Display (HMD) to provide precise guidance and facilitate surgical operations.

Gain a Competitive Edge with Our Global Head Mounted Display Market Report

• Global Head Mounted Display Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Head Mounted Display Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.