September 27, 2013—The head-mounted display market is expected to grow at a compound annual growth rate of 60 percent annually from 2012 through 2017, according to a new report “Head Mounted Display (HMD) Market Global Forecast and Analysis (2012 - 2017)” by market research firm MarketsandMarkets. The market research report estimates that the HMD market will grow from $336 million in 2011 to $4.48 billion by 2017.
The biggest driver of the HMD market is their use in military and defense applications. Video gaming and virtual reality applications are also expected to fuel the massive growth, due in part to improved user experience, growth in the video gaming sector and reduced cost of micro-displays.
Currently the largest markets for HMDs is North America and Europe, but over the next five years, Asia is expected to grow at the highest rate, due to skilled labor and the low cost of manufacturing in Japan, China and South Korea.