Head Mounted Display (HMD) Market Size, Share, Statistics and Industry Growth Analysis Report by Type, Technology (AR, VR), Application (Consumer, Commercial, Enterprise & Industry, Aerospace & Defense), Product Type (Head-mounted, eyewear), Component, Connectivity and Region - Global Forecast to 2029
[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 at a CAGR of 28.8% during the forecast period.
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 Forecast to 2029
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Head Mounted Display (HMDs) Market 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 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 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.
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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Key Market 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
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Report Metric |
Details |
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Estimated Market Size in 2024 |
USD 7.5 Billion |
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Projected Market Size in 2029 |
USD 26.4 Billion |
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Growth Rate |
CAGR of 28.8% |
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Market size available for years |
2020—2029 |
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Base year |
2023 |
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Forecast period |
2024—2029 |
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Forecast Units |
USD Millions/USD Billions and Million Units |
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Segments Covered |
By Type, By Technology, By Component, By Product Type, By Connectivity, And By Application |
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Geographic regions covered |
Americas, Europe, Asia Pacific, and the Rest of the World |
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Companies covered |
Meta (US), Sony (Japan), Microsoft (US), Samsung (South Korea), Magic Leap, Inc. (US), ByteDance (China), DPVR (China), Sieko Epson Corporation (Japan), HTC (Taiwan), and Vuzix (US). |
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.
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Segment |
Subsegment |
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By Type |
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By Technology |
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By Component |
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By Product type |
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By Connectivity |
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By Application |
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Recent Developments
- 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.
Frequently Asked Questions (FAQs):
What is the current size of the global Head-mounted Display (HMD) market?
The Head Mounted Display (HMDs) market is projected to reach USD 26.4 billion by 2029 from USD 7.5 billion in 2024 at a CAGR of 28.8% during the forecast period. 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 the major factors driving the market growth
Who are the winners in the global Head-mounted Display (HMD) market?
Companies such as Meta (US), Sony (Japan), Microsoft (US), Samsung (South Korea), Magic Leap, Inc. (US).
Which region is expected to hold the largest market share?
Americas is expected to register the largest market share in the Head-mounted Display (HMD) market during the forecast period. The high growth of the market in the region can be attributed to the widespread acceptance of AR and VR devices for enhancing productivity and accuracy across various sectors and the presence of some of the established HMD manufacturers, such as Meta and Microsoft in the region.
What are the major drivers and opportunities related to the Head-mounted Display (HMD) market?
Growing investments by significant key players in the development of HMD, availability of low-cost HMDs, technological advancements and growing digitalization, Affordable microdisplay prices, growing demand for lightweight HMDs and portable devices, and growing consumer adoption are major drivers and opportunities driving the market growth.
What are the major strategies adopted by market players?
The key players have adopted product launches, acquisitions, and partnerships to strengthen their position in the Head-mounted Display (HMD) market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The research study involved four major activities in estimating the size of the Head-mounted Display (HMD) market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In secondary research, various secondary sources have been referred to for obtaining the information that was needed for the study. Various secondary sources that were used for the research include, corporate filings such as annual reports, press releases, investor presentations, and financial statements; trade, business, and professional associations; whitepapers, journals, certified publications, and articles from recognized authors and databases.
In the head-mounted display report, the top-down as well as bottom-up approaches have been used for the estimation of the global market size, along with several other dependent submarkets. The major players in the market were identified with the help of extensive secondary research and their presence in the market was determined using secondary and primary research. All the percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Primary Research
Extensive primary research has been conducted after understanding the HMD market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand- and supply-side vendors across four major regions— Americas, Europe, Asia Pacific, and the Rest of the World. Approximately 25% of the primary interviews have been conducted with the demand-side vendors and 75% with the supply-side vendors. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews; questionnaires and emails have also been used to collect the data.
After successful interaction with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings of our primary research. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches along with data triangulation methods have been used to estimate and validate the size of the head-mounted mounted (HMD) market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Initially, the focus was on top line investments and spending in the ecosystem. Further the segment level splits and major developments in the market have been considered.
- Identifying different stakeholders in the HMD market that influence the entire market, along with participants across the supply chain
- Analyzing major manufacturers of HMD devices as well as studying their product portfolios
- Analyzing trends related to the adoption of HMDs based on application type
- Tracking the recent and upcoming developments in the market that include investments, R&D activities, product launches, collaborations, mergers & acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters
- Carrying out multiple discussions with key opinion leaders to identify the adoption trends of HMD
- Segmenting the overall market into various other market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up Approach
Market Size Estimation Methodology-Top-down Approach
Data Triangulation
After arriving at the overall market size through the market size estimation process explained in the earlier section, the overall HMD market has been divided into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply side perspectives. Along with data triangulation and market breakdown, the market has been validated by top-down and bottom-up approaches.
Market Definition
A Head-Mounted Display (HMD) refers to a wearable device designed to present visual information directly to the user's eyes. This display system is typically worn on the head and may cover the eyes partially or completely, creating an immersive experience for the user. HMDs can be used for various applications, including virtual reality (VR), augmented reality (AR), and mixed reality (MR). The device incorporates components such as displays, optics, sensors, and audio systems to provide users with a simulated environment or overlay digital information onto the real world. HMDs find applications in entertainment, gaming, healthcare, education, training, and various industrial sectors, offering users a more immersive and interactive way to engage with digital content and experiences.
Key Stakeholders
- Suppliers of raw materials and manufacturing equipment
- Semiconductor foundries
- Original equipment manufacturers (OEMs)
- Manufacturers of AR and VR devices
- Original design manufacturers (ODMs) and OEM technology solution providers
- Research organizations
- Technology standard organizations, forums, alliances, and associations
- Technology investors
- Governments, financial institutions, and investment communities
- Analysts and strategic business planners
The main objectives of this study are as follows:
- To define, analyze, and forecast the HMD market size, by type, technology, component, product type, connectivity, and application in terms of value
- To define, analyze, and forecast the HMD market size, by technology, in terms of volume
- To forecast the market size for various segments with respect to four main regions, namely, Americas, Europe, Asia Pacific, and Rest of the World
- To provide detailed information regarding the major drivers, restraints, opportunities, and challenges influencing the growth of the HMD market
- To study the complete value chain and related industry segments for the HMD market
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To analyze trends and disruptions; pricing trends; patents and innovations; trade data (export and import data); regulatory environment; Porter’s five forces analysis; case studies; key stakeholders & buying criteria; technology trends; the market ecosystem; and key conferences and events related to the HMD market.
- To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market
- To strategically profile the key players and comprehensively analyze their market position in terms of ranking and core competencies2, along with detailing the competitive landscape for the market leaders
- To analyze competitive developments such as product launches/developments, expansions, acquisitions, partnerships, collaborations, agreements, and research and development (R&D) activities carried out by players in the HMD market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Country-wise breakdown for Americas, Europe, Asia Pacific, and Rest of the World
Company Information:
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Head Mounted Display (HMD) Market
We are trying to better understand the HMD market in terms of applications breakdown versus technologies, and more specifically the aspects of electro-optics
I am doing market research to determine which companies are in the HMD space, as well as other spaces related to VR/MoCap/AR. I am running an study as part of an innovation award to determine best fit with our applications. Any help will be appreciated.
Please send me some market insights or key findings that I can use to get a client to buy the full report OR come back with a custom request.
I am an Industrial student at the University and working on a project on virtual reality industry and different variety of HMDs. I was wondering if you had a student discount rate for your site?
I want to get forecast not only HMD device, but also service and solution revenue forecast by using HMD. I want to know categorized service and solution revenue forecast by using HMD are included in this report or not.
Can you provide data about systems integrated in the helmet for the firefighting? Thanks in advance for your support.
I would like to know more details regarding research methodology and validation sources. Also, looking for customized research in this area.
Interested to more about Eyewear Segment Expected to Grow at the highest CAGR during forecast period.
Please provide the global data and some validate statistics for head mounted devices for Indian market.