HEAD-MOUNTED DISPLAY (HMD) MARKET ANALYSIS

A head-mounted display is an electronic wearable device, mounted on a head that includes a small display optic near the eye. The display optic projects a virtual environment in front of the user’s eyes. The screens used in the head-mounted display are liquid crystal displays (LCDs) since they are compact, efficient, and lightweight. HMD finds applications in a variety of industries including military, gaming, medical, sports, training and simulation, engineering, etc. The virtual reality headsets used in gaming and other applications are HMDs combined with inertial measurement unit (IMU). Furthermore, optic head-mounted display (OHMD) is a wearable display that can reflect projected images and enables the user to see through it.

The global head-mounted display (HMD) market is estimated to account for US$ 5.5 Bn in 2021 and is expected to grow at a CAGR of 46.0 % over the forecasted period 2022-30.

Market Trend

High presence of key manufacturers

The semiconductor and wearable electronics market in North America has matured enough so that it can drive growth of the regional head mounted display market. North American information technology, electronics, semiconductor, and automation companies are introducing innovative HMD technologies in order to maintain a competitive edge in the industry. Furthermore, some of the major players in the IT industry and social networking sites are focused on investing in head-mounted displays. For instance, in 2014, Facebook acquired Oculus VR to enter the consumer electronics segment.

Rapid growth of healthcare industry

Rapid growth of healthcare industry in North America has resulted in increased use of head-mounted displays in the region for accurate and safe decision-making in medical treatment and healthcare. Healthcare professionals in the U.S. use Google Glass to track patient health records in hospitals. Moreover, Google Glass is expected to find applications in treatment for autism and various other fields including healthcare and medical research.

High growth of electronics industry

The consumer electronics industry in Brazil is expected to witness high growth in the near future, owing to active support from the government. Rising demand for navigation-based displays in the region is expected to boost the regional HMD market. Furthermore, growing semiconductor industry in Lain America is attracting global players in the semiconductor industry to expand their business into the region.

Strong support from the government

The Brazilian government is actively supporting the electronics industry by providing tax incentives for the domestic production of electronic products. Moreover, Brazil’s government’s ‘Padis’ program focuses on supporting technological developments in the semiconductor industry and advanced technical developments in integrated circuits and assembly-related tasks.

Market Restraint:

High price associated with wearable products is expected to hamper the global head mounted display (HUD) market growth over the forecast period

Although HMD wearables offer lucrative features, the prices of these devices are significantly high and not affordable for consumers from emerging economies such as India, China, and Brazil. Moreover, head mounted displays are made with high-end technologies and delicate components such as LCD screen, which increases their price significantly. Therefore, high price associated with HMDs is expected to hamper the market growth over the forecast period.

Low consumer awareness in emerging economies is expected to hinder to global head mounted display (HUD) market growth over the forecast period

Lack of consumer awareness regarding various features offered by HMDs is different applications, especially in emerging regions such as Latin America and Middle East & Africa is the major restraining factor. Moreover, HMDs are relatively more popular in military and defense applications as compared to consumer electronics. Hence, these factors are expected to hinder the global head mounted display (HMD) market growth over the forecast period.

Market Opportunities

Integration with healthcare and fitness devices can present lucrative growth opportunities

The demand for wearable devices such as bands, eyewear, and smart-watches is expected to increase significantly in the near future. Key players in the market are can integrate head mounted displays with wearable’s and capitalize on untapped market potential. For instance, Samsung Gear Live is a wearable device that monitors heart rate and has attractive appearance. Moreover, Samsung Gear Fit is a fitness version of Samsung Gear and Integrated Mobile S Health Partner.

Rising applications in the entertainment sector can pose major business opportunities

Video gaming and entertainment sectors have registered high demand for HMDs in the recent past. Increasing consumer interest in entertainment is a major factor driving growth of the eyewear display market. Moreover, companies such as Google, Sony, and Oculus VR have launched products for consumer entertainment purposes.

Global Head-mounted Display (HMD) Market - Impact of Coronavirus (Covid-19) Pandemic:

Outstanding the COVID-19 pandemic, the manufacturing units of the Top Key players in the market were highly hampered due to the universal lockdown and limited accessibility of labor and raw material. A number of programmed product launches and associated expansions have been suspended due to the pandemic. Furthermore, this suspension of product launches affected the demand for the head-mounted display market and this directly impacted the revenue of the global head-mounted display market.

 However, the impact of COVID-19 is likely to reduce during the forecast period.

Competitive Section

Key players operating in the global head mounted display (HMD) market are Sensics Corporation, Sony Corporation, Recon Instruments, Kopin Corporation, Thales Visionix, Inc., Oculus VR, Rockwell Collins, Inc., eMagin Corporation, Google Inc., Lockheed Martin, Japan Display Inc., and Seiko Epson Corporation.

Recent Developments:

• In July 2022. Kopin Corp., a supplier and provider of micro displays for VR and AR, has announced that they got an orders for manufacturing of ultra-bright full color brilliant active matrid LCDs used in helicopter by pilots which is able to show real time flight and targeted information.
• In February 2020, Google, an technology company focused on search engine optimization and technology, has announced the launch of Google Glass AR headset which features additional information for any object coming in front of it.

Forecasted North America is expected to hold a dominant position in the Global Head-mounted display (HMD) Market in 2030

Statistics:

North America region dominated the global head mounted display (HMD) market in 2021, accounting for 36 % share in terms of value followed by Europe and Asia Pacific, respectively.

 Figure 1: Global Head-mounted display (HMD) Market Share (%), By Region, 2021

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North America Head-mounted Display Market is expected to be one of the prominent region in the global market and witness high growth during the forecast period. This is owing increasing demand & purchasing power of individuals in many developed countries including the U.S., Germany, Canada, and the U.K.

Figure 2: Global Head-mounted Display (HMD) Market (US$ Bn) Analysis and Forecast, 2017 – 2030     

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The Global Head-mounted Display (HMD) Market was valued at US$ 5.5 Bn in 2021 and is expected to reach US$ 104 Bn by 2030, growing at a CAGR of 46.0% between 2022 and 2030.