The global head-mounted display market is growing at a CAGR of nearly 35.0% during the forecast period. The major factors that are augmenting the growth of the market include rising adoption in consumer applications and increasing adoption of augmented reality (AR) and virtual reality (VR) technology. Head-mounted displays are regarded as highly immersive display devices that are significantly targeted towards e-learning, video games, and other kinds of digital entertainment. This immersive display device is normally used for watching movies and playing games as it can offer a more realistic and entirely immersive in-game environment to the user.

During the gameplay, head motion tracking is enabled, which makes the game even more realistic. Therefore, the users are playing PC games with head-mounted displays that will show a higher enjoyment level compared to the users playing computer games with conventional setup. As a result, the head-mounted display supports boosting the users’ enjoyment while making the game more interesting to play. Therefore, the rising launches of VR games have been witnessed over the years. For instance, in March 2021, Sony declared that it will launch a new slate of PlayStation VR games, which includes a VR adaptation of Doom 3, I Expect You To Die 2: The Spy And The Liar, Fracked, After the Fall, Song in the Smoke, and Zenith: The Last City - The Fracture. 

All these games declared to be available for PlayStation 5, however, some are expected to be released on PlayStation 4 as well. Additionally, in February 2021, Sony declared a new generation of PlayStation VR for its PlayStation 5 console. This headset declared to be available with a higher-resolution screen, redesigned controller, a single cord rather than the original cable box, and other upgrades. These new launches of VR games are supporting to drive market growth. Further, rising funding opportunity in head mounted displays are estimated to offer an opportunity for market growth. However, the high cost of head mounted devices and certain health side issues, including headache, is expected to hinder the adoption of head mounted displays.

Segmental Outlook 

The market is segmented based on application and technology. Based on application, the market is classified into entertainment, commercial, medical, military and defense, education, industrial, and others. Based on technology, the market is classified into VR and AR. 

Global Head Mounted Display Market Share by Technology, 2020 (%)

Augmented Reality (AR) Technology is Expected to Witness Fastest Growth During the Forecast Period

The growth of AR applications has been led by the solutions that enable consumers to imagine and experience the product and service earlier buying it and visualize products. The demand for AR technology will further accelerate owing to the rising innovations in AR headsets. For instance, in September 2019, Cambridge engineers, UK have developed a new AR head-mounted display that provides a realistic 3D viewing experience, without the commonly associated side effects of eyestrain or nausea.

The head mounted display is of high brightness and appropriate for a comprehensive range of indoor and outdoor applications. Further research is continuing exploring its potential use in areas of diverse applications including hospitality, training, outdoor sport, CAD (computer-aided design) development, defense applications and construction, data manipulation, as well as miniaturizing the current head-mounted prototype to a glasses-based format. 

Regional Outlook

The global head mounted display market is analyzed based on geographical regions such as North America, Europe, Asia Pacific and the Rest of the World. In 2020, North America held the largest share in the market owing to the rising military projects for head mounted displays and a significant rise in the popularity of VR headset games in the region. The Defense Advanced Research Projects Agency (DARPA) is focusing on the future of wearable computers and other technologies that can support warfighters in overwhelming acts of multi-tasking. Therefore, it has started programs for the development of head-mounted displays to support soldiers to monitor information with unparalleled ease and efficiency.

Global Head Mounted Display Market Growth, by Region 2021-2027

Asia-Pacific is Expected to Witness Fastest Growth in the Market During the Forecast Period

Asia-Pacific head mounted displays are expected to witness potential growth during the forecast period owing to the rising consumer electronics market and emerging application in the military and defense sector. For instance, in February 2021, the Indian Army declared that it is in the process of acquiring 556 AR head mounted display systems, which is regarded as a capacity enhancement to Land-Based Air Defence Weapon Systems including the ZU 23mm 2B AD Gun System and the IGLA shoulder-fired Infrared Homing Air Defence Missile System, which will offer the operator with thermal imaging (TI) and radar sight outputs as overlays. This, in turn, is expected to further accelerate the market growth in the region.

Market Players Outlook

Key players operating in the market include Google LLC, Microsoft Corp., Samsung Electronics Co., Ltd., Sony Corp., and BAE Systems plc. The market players are focusing on the development of head mounted displays for different applications. For instance, in February 2021, Vuzix Corp. declared that it has completed the first phase of development with a medical partner located in the US, for the development of a customized head mounted display system for assisted medical cancer surgery. Vuzix is continuing to make progress towards receiving approval for the 2nd phase of the planned development agreement. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global head mounted display market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.