Head-Mounted Display – The Rising Era of AR and VR Technology
Head-mounted displays (HMD), as electronic display devices that are worn over the head like a helmet. These devices consist of small screens in front of the eyes of the users and further offer a highly enhanced cinematic experience to its users. There booming adoption of head-mounted displays across various industry verticals such as military and defense, healthcare, and others is one of the major factors for the rapid market growth throughout the forecast period. The high adoption of these devices across the media and entertainment industry is also a key factor supplementing the market growth in the next five years. The abilities of these displays to simulate real-world and complex scenarios is driving the adoption of these displays in scientific research fields, thus playing a major role in shaping up the market growth over the course of the next five years. The key market players are actively participating in the market in the form of R&D investments for the launch and development of new products, partnerships, acquisitions, and mergers among others to tap the potential that the market holds. This, in turn, is further propelling the opportunities for the market to surge in the near future.
The inclination of various end-users towards the adoption of augmented reality and virtual reality technologies is further excepted to amplify the demand for head-mounted displays in the coming years, thus anticipated to significantly drive the market growth throughout the forecast period. The importance of augmented reality and virtual reality is has increased in the coming years across various industries with an aim to eliminate the physical presence of human beings is also augmenting the growth during the coming five years.
Segment Overview:
The segmentation of the market has been done on the basis of technology, product, connectivity, display, industry vertical, and geography. By technology, the segmentation of the market has been done into virtual reality and augmented reality. On the basis of the product, the market has been classified on the basis of head-mounted and eyewear. By connectivity, the market has been classified into wired and wireless. On the basis of display, the market has been distributed into Slide-On HMDs, Discrete HMDs, and Integrated HMDs. On the basis of industry vertical, the distribution of the market has been done into 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.
Aviation and Defence to Show Healthy Growth
By industry vertical, aviation and defense is anticipated to show a promising growth throughout the forecast period. This growth is attributed to the increase in defense budget allocation by countries towards strengthening their defense capabilities aimed at mitigating different levels of security threats. Simultaneously, the defense spending in the aviation sector in major developing countries like India and China is expected to increase on account of continued regional tension which is likely to stimulate the military traffic which further propels the demand for these systems. For example, 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
Furthermore, governments of major developing and developed nations across the globe are focusing on creating stronger military bases on account of growing technological advancements, in addition giving more attention to the defense sector is expected to anticipate the demand for these various technologies for uplifting the infrastructure. Thus, anticipated to positively impact the growth during the next five years.
Moreover, the media and entertainment segment is expected to hold a significant market share during the next five years. The major factors supplementing the share of this segment include the high adoption of AR and VR technologies for gaming purposes. The growing availability of VR and AR enabled content and games coupled with a rapid growth in the number of gamers across the globe is bolstering the growth of this segment throughout the forecast period.
Furthermore, healthcare professionals across the globe are taking several steps with an aim for the transformation of the medical procedures and research are further adopting the AR and VR technologies for treatments and diagnosis of various life-threatening diseases in a cost-effective manner. Moreover, the booming healthcare expenditure in various developing economies of the globe for the up-gradation of the healthcare infrastructure along with the adoption of advanced technologies is further providing an impetus for the market to propel in the next five years. For instance, in 2018 the healthcare expenditure in Germany reached 387.7 billion euros with an increase of 3.1% from the previous year (Source: Statistisches Bundesamt (Destatis)).
Healthcare Expenditure Total (Billion Euros) – Germany
Source: Statistisches Bundesamt (Destatis)
Europe to Hold a Notable Share
Geographically, the Asia Pacific region is anticipated to show promising growth opportunities for vendors and manufacturers of the market. The burgeoning adoption of technology across the various developing economies of the region such as India and China is one of the key factors supporting the market growth in this region. Furthermore, the increasing healthcare and military spending across the various countries of this region is also positively impacting the head-mounted display market growth in the APAC region in the coming years. However, the European region is projected to hold a substantial market share throughout the forecast period due to the presence of a well-established semiconductor industry in the various countries of the region.
ABOUT THE AUTHOR:
Rachit Gulati is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from automation to food and beverages, with a special knack for automotive and healthcare. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets, visit https://www.knowledge-sourcing.com.
