Market Insights
The declining prices of microdisplays, together with the escalating demand for lightweight wearable computing devices, are a major force fueling the market growth. Declining prices of microdisplays have enabled manufacturers to manufacture low-cost HMD prototypes, thereby enabling them better to penetrate the consumer market in price-sensitive emerging economies. In addition, the growing inclination towards patent filings associated with virtual and augmented reality technologies is expected to have a positive impact on market growth.
These factors are expected to contribute toward a compounded annual growth rate (CAGR) of 49.9% during the forecast period 2022 – 2030. Although concerns related to image latency, battery life, and design standardization has somewhat plagued the penetration of head-mounted displays, the manufacturers and industry-associated communities are collectively working on standardizing design guidelines and addressing other prevailing issues.
The head mounted display market valued at USD 20.21 BN in 2022 and expected to reach USD 515.2 BN by 2030, expanding at a CAGR of 49.9% from 2022-2030.
Target Audience
- Industry Investors
- Head Mounted Display Manufacturers/Assemblers
- Original Equipment Manufacturers
- Head Mounted Display Software Providers
- End-users
Overall, the research study provides a holistic view of the global head-mounted display market, growth, offering market size, and estimates for the period from 2022 to 2030, keeping in mind the above-mentioned factors.
Product Segmentation Analysis
Based on product types, the global head-mounted display market is segmented into the following categories
- Helmet Mounted Display
- Wearable Computing Glasses
The helmet-mounted display was the largest product segment in the global head-mounted display market, accounting for over half of the global market revenue in 2021. The market for helmet-mounted displays has been majorly driven by the demand from defense applications. The advancements in technology and introduction of light-weight eyewear computing glasses are expected to revolutionize the head-mounted display industry, expanding their application beyond the traditional defense service (military, navy, and air force) end-use segment. This rise in demand for eyewear computing glasses is mainly owing to its characteristics, including compactness and connectivity, which allows users to be mobile while simultaneously availing the advantages of computing power.
Application Segmentation Analysis
On the basis of applications, the head-mounted display market is categorized into the following categories:
- Security
- Training and Simulation
- Imaging
- Tracking
Training and simulation was the largest application segment in the head-mounted display market, accounting for over 3/4th of the global market revenue in 2021. The dominance of the training and simulation segment is majorly on account of the increased use of wearable devices in medical and defense training sessions. With the advancements in display technologies, head-mounted displays with superior computer graphics, better resolution, and three-dimensional views have been witnessing significant growth in imaging applications across the medical community. In addition, growing terrorism threats across the globe have led to increased use of HMDs for security applications.
End-use Segmentation Analysis
On the basis of end-use, the head-mounted display market is categorized into the following verticals:
Defense
Consumer
- Video gaming
- Virtual Reality
- Augmented Reality
Healthcare
- Public Safety
- Others (Sports, Design, etc.)
The defense segment comprising military, air force, and navy accounted for over 2/3rd of the market revenue in 2021. This dominance can be attributed to the regulated demand from the military sub-division. Increased use of avionics for navigation and tracking applications is expected to boost demand for wearable devices in the air force sub-division. The advancements in display technologies and other capabilities like superior computer graphics and 3D view are expected to fuel the demand for head-mounted displays in the healthcare domain. Furthermore, with the advent of augmented and virtual reality technologies, the demand for HMDs is all set to proliferate. The HMD industry is witnessing a rise in augmented reality hardware devices, with active industry players, including Microsoft, Google, and Sony, planning to launch a separate product line of wearable computing glasses with augmented reality capability.
A head-mounted display is a wearable display or projection technology incorporated in eyeglasses or mounted on a headdress. It consists of a small display optic, which projects an augmented and virtual environment in front of the wearer’s eye. The different technologies employed in the display unit of a head-mounted display include Cathode Ray Tube (CRT), Liquid Crystalline Display (LCD), Liquid Crystal on Silicon (LCoS), or Organic Light Emitting Diode (OLED). Some manufacturers also employ multiple microdisplays to augment resolution capabilities and total field of view. The following table gives the technical overview of different technologies employed in display units.
The concept of head-mounted displays traces its roots to the first half of the 20th century. The concept was first patented by McCollum in 1945. In 1960, Morton Heilig introduced and patented a head-mounted stereophonic television display and later went on to develop a stationary VR simulator equipped with a wide range of sensory devices such as a binocular display (1962). The first HMD incorporating head tracking capability and synchronized computer-generated image overlay was introduced by Sutherland in the late 1960s (1965 – 1968). It was called “Sword of Damocles” and had a CRT-based optical-see through relay optics for each eye.
Since the 1970s, the U.S. defense service, especially Air Force, has looked upon HMD systems as a means of offering the aircrew a variety of flight information. In 1973, the U.S. Air Force first tested a prototype AN/PVS-5 series Night Vision Goggle. Since then, the U.S. defense services have tested and introduced several HMD models, some of which include Integrated Helmet and Display Sighting, Visually Coupled Airborne Systems Simulator (VCASS) (1982), System (IHADSS) (1985), and super-cockpit VR system (1986) among others. The HMD market in the past had been constrained owing to poor ergonomics, bulky appearance, and technical limitations of optics. However, with the advancements in optic technology and the introduction of lightweight eyewear computing glasses, the market has gained the necessary traction, extending the application base beyond defense services to consumer space, healthcare, education, sports, and architectural design, among others.
Geography Segmentation Analysis
On the basis of geography, the global head-mounted display market is segmented into the following regions and countries.
North America
- The U.S.
- Rest of North America
Europe
Asia Pacific
- Japan
- China
- Rest of Asia Pacific
Rest of the World
- Latin America
- The Middle East and Africa
The introduction of lightweight eyewear computing glasses has brought a new dynamism to the global head-mounted display industry. The demand for head-mounted displays has been predominant in traditional markets like North America and Europe owing to regulated demand from defense services and comparatively greater adoption of augmented and virtual reality technologies across multiple verticals in these regions.
The head-mounted display market in North America and Europe witnessed a two-three year slow-down at the beginning of this decade due to the economic downturn and declining defense expenditures. However, with economies recovering from the economic recession, the head-mounted display industry is all set to regain its original growth levels. Over the forecast period, we expect high penetration of HMDs in emerging economies of Asia, the Middle East, and Latin America as manufacturers seek to achieve a first-mover advantage.
