Head-Mounted Displays (HMD), are display devices that contain a small screen right in front of the eyes. These devices are worn on the head like a helmet and they offer a cinematic experience to the users. The market for head-mounted displays is projected to witness rapid growth over the course of the next five years. The major factors boosting the market growth include the rapid adoption of these displays across various industry verticals that majorly include aviation and defense, media and entertainment, and healthcare among others. The booming adoption of head-mounted displays in scientific research is also playing a significant role in shaping up the market growth over the next five years as these displays have the ability to simulate risk infused and complex real-world scenarios. The rapid advancements in technology have led to the development of new and efficient products in terms of dimension, weight, impact on eyes, and others.
Booming Adoption of AR and VR Technologies
The major factors driving the head-mounted display market growth is the rising inclination of various organizations across the different industry verticals regarding the adoption of virtual reality and augmented reality technologies. The increasing importance of AR and VR technologies across the industries to eliminate the physical presence of humans in various environments is also propelling the adoption of head-mounted displays in various industries. Additionally, the growing adoption of VR in the military and media sector is also projected to propel the growth opportunities for the manufactures to invest in the market and tap the potential that the market holds.
The head-mounted display market has been segmented on the basis of technology, product, connectivity, display, industry vertical, and geography. On the basis of technology, the market has been segmented into virtual reality and augmented reality. By the product, the segmentation of the market has been done into head-mounted and eyewear. On the basis of connectivity, the segmentation of the market has been done into wired and wireless. By display, the classification of the head-mounted display market has been done into Slide-On HMDs, Discrete HMDs, and Integrated HMDs. By industry vertical, the market has been segmented on the basis of aviation and defense, media and entertainment, manufacturing, healthcare, education, and others. Geographically, the segmentation of the market has been done into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
By technology, the virtual reality segment is expected to hold a significant market share. In virtual reality, a simulated environment is created with the help of computer technology. Virtual reality gives the user an intense experience by creating real-world scenarios and placing the users in them. Also, the rising adoption of virtual reality across the media and entertainment and the healthcare sector is also a key factor shaping up the growth of the market for the next five years. The augmented reality segment is anticipated to witness healthy growth over the course of the next five years on account of booming investments by various players in the AR market to develop and advance the technology.
By product, the head-mounted displays segment is anticipated to hold a substantial market share throughout the forecast period. The growth of this segment is primarily attributed to the wide adoption of these head-mounted displays across the military and defense sectors. The eyewear segment is expected to show decent growth throughout the forecast period due to the continuous investments by companies the development of advanced and latest products.
By connectivity, the wired segment is expected to hold a decent market share. However, the market for wireless head-mounted displays is expected to show notable growth over the course of the next five years. The major factors bolstering the growth of this segment include the rising adoption of these headsets across various industries due to ease of use. Also, comparatively low costs of these headsets is also one of the key factors propelling the market growth of this segment in the near future.
By industry vertical, the media and entertainment segment is anticipated to hold a substantial market share throughout the forecast period on account of the high adoption of VR and AR headsets for gaming purposes. Also, the growing availability of VR and AR content across various online streaming platforms is also supplementing the growth of this segment in the coming five years. The healthcare sector is projected to witness a healthy growth on account of the rapid increase in the adoption of technology across the various developing economies coupled with a significant increase in the healthcare expenditure for the up-gradation of the healthcare infrastructure around the globe. For instance, the current healthcare expenditure per capita (current US$) in China increased to 440.826 in 2017 from 97.747 in the year 2007 (Source: The World Bank Group).
Current Healthcare Expenditure per Capita (Current US$) - China
Source: The World Bank Group
Geographically, the North American region is expected to hold a significant share in the market throughout the forecast period on account of the early adoption of technology coupled with the presence of a well-established infrastructure across the various industry verticals especially healthcare and aviation and defense. Furthermore, the presence of major leading market players in the region is also supplementing the market growth in the coming years. Additionally, the well-established semiconductor industry also plays a significant role in driving the market growth in the North American region.
The market in the Asia Pacific region is expected to witness a healthy growth on account of booming technology adoption across the numerous industry in the major developing economies such as India, China, and Vietnam among others. Also, the increasing military expenditures in the various countries of the APAC region on account of rising regional tensions is led to the up-gradation of technology and infrastructure, thus expected to positively impact the head-mounted display market growth for in the Asia Pacific region over the next five years. According to the data from the World Bank Group, the military expenditure (current USD) in India reached 66.51 billion in 2018 from 46.09 in the year 2010. Similarly, in China, It reached 249.997 billion in 2018 from 115.712 billion in 2010.
Military Expenditure (Current USD) - India, China
Source: The World Bank Group