Exploring the HMD Market: Applications, Growth Drivers, and Forecasts

The global head mounted display market size is estimated to reach USD 45.41 billion by 2030, expanding at a CAGR of 27.7% from 2025 to 2030, according to a new report by Grand View Research, Inc. Reducing silicon wafer costs have directly impacted microdisplay prices, which form a sizable percentage of the resultant HMD cost. As a result, declining microdisplay prices coupled with the growing demand for wearable, lightweight devices are expected to be key driving forces for the HMD market. Defense services are a key contributor to global demand, wherein head-mounted displays aid in security, imaging, and tracking.

Head-mounted displays offer a high degree of mobility and computing power, which has led to increasing market penetration in the consumer sector. Growing demand from automotive prototyping is expected to be a key opportunity for industry participants. Lack of standardization resulting in design issues may restrain market growth over the next six years. This can be mitigated with the help of the establishment of necessary guidelines for HMD production.

Head Mounted Display Market Report Highlights

The global head mounted display market size was valued at USD 10.94 billion in 2024; The market growth can be attributed to the increasing investments of major players in developing head mounted display (HMD) technology.
Consumers dominated the market with a 41.3% share in 2024. The market dominance can be attributed to the rising demand for immersive entertainment experiences. Consumers have increasingly sought out VR and AR headsets for gaming and streaming interactive content.
Training and simulation is expected to continue accounting for the majority of the overall market through 2030. This is a result of the growing use of HMDs in medical as well as military training modules.
North America accounted for over 39.0% of the global HMD market in 2024; the Asia Pacific is expected to exhibit high growth over the forecast period. The establishment of manufacturing facilities along with technology advancement due to the presence of Japan, South Korea, and China is expected to fuel regional market growth.
Key companies operating in the market include Siemens, BAE Systems, HEAD acoustics GmbH, Brüel Kjær, and Sony Corporation. Major manufacturers have started developing products targeted at entertainment purposes; additionally, geographical expansion is expected to be a key growth strategy.

Head Mounted Display Market Segmentation

Grand View Research has segmented the global head mounted display market based on type, technology, product, connectivity, component, end use, and region:

Head Mounted Display Type Outlook (Revenue, USD Million, 2018 - 2030)