The global head mounted display market is expected to grow from US$ 7,840.66 million in 2021 to US$ 55,333.07 million by 2028; it is estimated to grow at a CAGR of 32.2% from 2021 to 2028.
Military operations are becoming increasingly diverse in their nature. There have been numerous goals driving this research over the past several decades. Many of the military requirements and capabilities have specifically driven development of AR systems. For instance, in 2021, The Indian Ministry of Defence (MoD) has announced that the army is in the process of procuring 556 augmented reality head-mounted display (ARHMD) systems. Military HMDs generally do not display videos or media, but rather provide information and tracking as part of a vehicle’s heads-up display. AR/VR headsets undertake a huge range of simulations, without the associated costs, thus massively reducing training budgets. Therefore, the adoption of AR/VR headsets is growing in military. The global head mounted display market growth is primarily driven by the rising adoption of HMD for defense and military applications. Furthermore, in 2019, as part of a new effort to develop advanced technologies to enhance situational awareness and capabilities for soldiers, the U.S. Army invited Microsoft engineers and other employees to a military base in North Carolina for signing a contract of delivering AR/VR headsets. Thus, the above-mentioned initiatives and developments in AR/VR technologies in the military sectors would drive the growth of the head mounted display market in the coming years.
Asia Pacific is one of the most significant regions with respect to the adoption of head mounted display. Rapid technological advances and economic digitization and growing disposable income of the middle-income class are among the factors driving economies from growth phase to developed phase. It is supporting the growth of MSMEs eventually. Major factors responsible for the increasing market share in the region are the presence of a large customer base, increasing number of smartphone users, and the rising startups in AR and VR technology. One of the most popular uses of virtual reality and augmented reality technology is in video games. This is where Asia-Pacific has spearheaded the VR/AR revolution, with the companies in the region, such as Sony, Nintendo and Sega, turning out exciting products that would bring AR/VR to a whole host of new audiences worldwide. The increasing demand for VR and AR technology in the gaming industry due to the COVID-19 pandemic and the rising interest of large technology corporations drive the virtual reality market. Many product developments are also initiated by companies worldwide, which are also accelerating the growth of the head mounted display market. For instance, in May 2020, HP Development Company, LP announced the launch of its new virtual reality (VR) headset HP Reverb G2. The new product is launched in collaboration with Microsoft and Valve and offers spatial 3D audio, inside-out tracking, cutting-edge optics, and plug-and-play support for Windows. The new product increased the product portfolio of the company.
Microsoft, Sony, Oculus VR, Lenovo, Magic Leap Inc., BAE Systems, Seiko Epson Corporation, Samsung Electronics, Google LLC, HTC Corporation, and Vuzix are among the key companies operating in the head mounted display market. The report comprises secondary research work on other companies that hold a significant market share.
The overall head mounted display market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the head mounted display market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the head mounted display market.