| Status : Published | Published On : Jul, 2021 | Report Code : VRSME9045 | Industry : Semiconductor & Electronics | Available Format :
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Page : 245 |
Global Head Mounted Display Market – Analysis and Forecast (2020-2027)
Industry Insight by HMD Type (Slide on HMD, Integrated HMD, and Discrete HMD), by Technology (AR Technology and VR Technology), by Component (Processors and Memory, Displays, Lenses, Sensors, Controllers, Cameras, Cases and Connectors, and Others) by Product Type (Head-Mounted and Eyewear ), by Connectivity (Wired and Wireless), by Application (Consumer, Commercial, Enterprise & Industry, Engineering & Design, Healthcare, Aerospace & Defense, and Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)
Industry Overview
The global head-mounted display market is anticipated to grow from USD 5.3 billion in 2021 to USD 38.1 billion by 2027, growing at a CAGR of 46.2% during the forecast period 2020-2027. A head-mounted display is a display device or a projection technology that is worn on the head or as a part of the helmet. It has a small display optic in front of one eye or each eye. Factors driving the growth of the head-mounted display market are the increasing adoption of portable devices in consumer applications and the rising adoption of augmented reality (AR) and virtual reality (VR) technologies. The head-mounted display is considered a highly immersive display device, primarily used for e-learning, video games, watching movies, and other types of digital entertainment. It provides users with a more realistic and fully immersive in-game environment. HMD is used in many applications such as games, aviation, engineering, and medicine. They have many advantages, i.e., high resolution of physical images, system response to head movements, better user experience, possible 3D views, and improved business.
The head-mounted display market has witnessed a substantial decline owing to the spread of the COVID-19 outbreak. The supply chain is adversely affected as many of the prominent players are based in China which was the epicenter of the pandemic. Currently, the industry players are focusing on maintaining and generating operating revenue, resulting in postponing the product launches and related developments. Moreover, the education industry has followed new norms of social distancing. HMDs that support virtual reality technology is often the first choice because they provide a three-dimensional view of virtual objects, allowing students at home to better understand and experience. The effect of COVID-19 is anticipated to reduce during the forecast period 2020-2027.
Market Segmentation
Insight by HMD Type
Based on HMD type, the head-mounted display market is divided into slide on HMD, integrated HMD, and discrete HMD. Integrated HMD (optical HMD) dominates the global HMD market in 2020 as it is an independent computing device and can deliver AR and VR experiences without any external hardware such as Pc or smartphone. Discrete HMD (tethered HMD) is anticipated to have the fastest CAGR during the forecast period owing to its extensive use in gaming and entertainment. The COVID19 crisis has increased the growth rate of these HMDs because people are trapped in their homes and HMDs are very useful for indoor entertainment.
Insight by Technology
Based on technology, the head-mounted display market is bifurcated into AR technology and VR technology. The VR technology segment holds the largest share in 2020 owing to its use in gaming. The augmented reality category is anticipated to grow at the fastest pace during the forecast period due to its adoption in enterprises and industrial applications. Moreover, the demand for AR technology will increase owing to its use as AR headsets in training videos, 3D gaming mode, etc.
Insight by Component
Based on the component, the head-mounted display market is segmented into processors and memory, displays, lenses, sensors, controllers, cameras, cases and connectors, and others. The display segment has the largest share and is anticipated to have the highest CAGR during the forecast period as displays are used to project virtual images in front of consumers. Several advantages, such as high resolution and large memory size, are driving the growth of the market segments.
Insight by Product Type
Based on the product type, the head-mounted display market is bifurcated into head-mounted and eyewear. The eyewear segment dominates the HMD market in 2020 due to the rising demand for AR applications. The increasing adoption of eyewear in diverse applications such as industry and enterprise, healthcare, and research and design, is anticipated to increase the market for eyewear HMDs. The display and eyewear of the smart wearable are lighter in weight, flexible, and helps the user by displaying driving directions, e-mails, and other notifications.
Insight by Connectivity
Based on connectivity, the global head-mounted display market is divided into wired and wireless. Wired connectivity holds the largest share in 2020 as wired connected headsets are physically connected to PCs such as Oculus Rift, PlayStation VR, and HTC Vive.
Insight by Application
Based on application, the global head-mounted display market is divided into consumer, commercial, enterprise & industry, engineering & design, healthcare, aerospace & defense, and others. Among these segments, the enterprise & industry segment is anticipated to hold the largest share in the head-mounted display market owing to the rising application of AR headsets in industrial applications such as training, logistics, and warehouse manufacturing and assembling. The increasing demand for HMD in security, tracking, and imaging applications is anticipated to drive the demand for defense segment during the forecast period.
Industry Dynamics
Industry Trends
There is an emerging trend such as AR and VR usage across several industries and enhanced consumer experience will catalyze the demand for HMD devices. Companies are partnering with defense agencies, healthcare, and entertainment industries to diversify the applications of HMD devices using machine learning algorithms such as simulation. Thus, bolstering the demand for the head-mounted display market.
Growth Drivers
There is an exponential rise in demand for the light-weight portable and wearable computing devices head-mounted display market. The increasing demand for consumer applications owing to development in display technologies which are offering superior capabilities such as 3D viewing and high resolution to the end-users results in the growth of the head-mounted display market. Moreover, the regulated demand for defense services and the rising use in the healthcare sector will have a positive impact on the market revenue of the head-mounted display market.
Challenges
The lack of standardization for HMD design, helmet considerations, symbol stabilizations, adequate field-of-view with respect to resolution provided, are the challenges hindering the growth of the head-mounted display market. Lack of awareness is a growing threat to its application around the world, and HMD's capability is very low, especially in underdeveloped and developing economies.
Opportunities
The head-mounted display market has a high penetration rate in video games, as they enhance the gaming experience by projecting digital images, allowing the 3D view to enhancing the user experience, thus offer lucrative opportunities in the head-mounted display market by technology evolution in the emergence of VR and 3D technologies. The use of HMD car prototypes via virtual car design and cloud computing is anticipated to provide promising opportunities in the HMD market.
Geographic Overview
North America is projected to hold the largest share in the head-mounted display market owing to its adoption of AR and VR technologies in the region. Moreover, the major demand for HMD originates from medical, defense, and safety services in the region. Europe is anticipated to propel high growth in the head-mounted display market by innovation in display technologies.
Asia-pacific is anticipated to have a high CAGR owing to the low production cost and maintenance cost, availability of cheap labor with ample expertise in the field.
Competitive Insight
The industry players in the head-mounted display market are focusing on expansion, technological development, increase in investment in R&D to launch new products, mergers and acquisitions, and tie-up with government agencies and defense forces. Thus, companies are sustaining their position in a competitive market and are providing a competitive edge.
- Microsoft has won a USD 22 billion contract for manufacturing Augmented Reality Gear from the US Army. It would start manufacturing Integrated Augmentation Systems under the contract, which is for over a timeline of 10 years.
- Sony has unveiled its new VR controllers that would be different from the ball-on-a-stick controllers used in PS4. Sony has also stated that the controllers will come with adaptive triggers, haptic feedback, and finger touch detection features, among others.
Some of the key players operating in the head-mounted display market: Sony Group Corporation, Google, Microsoft, HTC Corporation, Facebook Technologies, LLC, BAE Systems, Samsung, Seiko Epson Corporation, Magic Leap, Inc., and Lenovo.
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Source:VynZ Research
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