Head-mounted Display Market Trends and Forecast 2026


The Head-Mounted Display Market is expected to grow from USD 5.5 billion in 2021 to USD 36.5 billion by 2026, at a CAGR of 46.0%. Surge in investments by major players in development of HMDs, increased adoption of AR and VR technologies due to COVID-19, availability of low-cost HMDs, and technological advancements and growing digitalization—are the key factors driving the Head-Mounted Display Market.

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HMDs have a high penetration rate in video games, as they enhance the gaming experience. PlayStation (PS) PlayStation has made HMDs more popular. The gaming industry has undergone a technological evolution with the emergence of VR and 3D technologies. Sony Corporation (Japan), Oculus VR (US), and HTC Corporation (Taiwan) are some of the Key Companies Operating in the market.

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Sony has a strong global presence, especially in Japan and the US. The company offers a wide range of products and services in the mobile, home entertainment, pictures, and gaming sectors. Sony is among the largest electronics conglomerates involved in the designing, manufacturing, development, and sale of electronic equipment. It offers electronic instruments and devices for the consumer and industrial markets, as well as customer support services worldwide.  For instance, in May 2020, Sony released a video illustrating the PSVR 2 with finger-tracking via onboard sensors. In June 2020, it announced that its “next-gen console” would continue to support PlayStation VR.

Oculus VR is among the key companies in the VR industry. The company’s VR headset, Oculus Rift, gained admiration from various companies for its potential effectiveness in a wide range of applications. The company has made high investments in R&D and is also actively involved in strategic business expansion. The company was acquired by Facebook (US) in March 2014 for about USD 2 billion, which indicates the importance of this technology and the potential value of Oculus’s Rift project. Facebook has been implementing this technology in business arenas such as gaming, architecture, education, healthcare, as well as consumer applications.

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