Head-Mounted Display Market Size, Share & Industry Analysis, By Platform (Airborne Platforms, Dismounted Soldier Systems, Armored Vehicle & Crew HMDs, Naval & Maritime HMDs, and Others), By Product Type (VR, HMDs, AR, HMDs / Smart Glasses, Mixed Reality (MR) HMDs, and Helmet-Mounted Displays (Aviation & Defense)), By Application (Situational Awareness & Targeting, Pilotage & Flight Operations, and Others), By Integration (Fully Integrated Platform-Coupled HMDs, Semi-Integrated HMDs with External Sensors, Standalone & Others), By End User, and Regional Forecast, 2026-2034

The global head-mounted display market size was valued at USD 3.40 billion in 2025. The market is projected to grow from USD 3.88 billion in 2026 to USD 11.21 billion by 2034, exhibiting a CAGR during the forecast period of 14.2%.

Head-mounted displays (HMDs) are wearable visual systems that place essential information right in front of the user’s eyes, usually through a visor, helmet, or smart glasses. In defense, this means pilots see flight and targeting displays on their helmets. Vehicle crews gain 360-degree vision from external cameras. Soldiers can view navigation, blue-force tracking, and targeting cues without looking down at a tablet. The market is being driven by several major factors such as militaries are digitizing quickly, they want improved situational awareness without overwhelming operators, AR/MR technology and sensors have become lighter and cheaper, and there is a strong push to connect every platform and soldier into the tactical network.

On the supplier side, the market is led by a mix of large defense companies and specialized optics and electronics providers. Key players include Elbit Systems, BAE Systems, Thales, Collins Aerospace (Raytheon Technologies), L3Harris Technologies, Saab, Leonardo, Honeywell Aerospace, and an expanding network of AR/MR and night-vision specialists supplying sensors, waveguides, and computing modules that fit into larger helmet and soldier-system programs.

MARKET DYNAMICS

MARKET DRIVERS

Demand for Heads-Up and Data-Rich Warfighters Drives Defense HMD Market Growth 

Militaries are working hard to get important data from cockpit and vehicle displays into the operator’s direct line of sight. Helmet- and head-mounted displays allow pilots, AFV crews, and dismounted soldiers to see targeting, navigation, threat cues, and blue-force positions without looking down or away from the fight. As forces move toward network-focused, sensor-heavy operations, HMDs become essential tools for air, land, and special operations units. This is why they are now integrated into flagship aircraft, soldier systems, and next-gen vehicle programs instead of being treated as separate gadgets. 

In February 2024, Collins Elbit Vision Systems announced the delivery of the 3,000th F-35 Gen III Helmet Mounted Display System, the main display for the Joint Strike Fighter. This highlights how front-line combat aircraft now see HMDs as standard equipment instead of optional upgrades.

MARKET RESTRAINTS

High Hardware Costs and Lifecycle Spend Restrain Market Growth 

Even as demand for immersive, real time data grows, the global head-mounted display market faces an affordability issue. High-end AR/VR and mixed reality HMDs, especially those designed for enterprise and defense, are priced at the top end of the scale. When you include compute packs, accessories, integration, support, and training, the actual market size for mounted displays that can justify deployment is smaller than the hype suggests. This slows down roll-out beyond well-funded programs in North America and a few other key markets, leaving many buyers stuck in pilot mode instead of expanding their fleets of devices. 

In 2024, the average price of a high-end VR headset is expected to be around USD 500 to 1,000. Devices including the Valve Index, HTC Vive Pro 2, and top-end Meta bundles all fall within this range. This positions serious immersive hardware in the “premium electronics” category instead of mass-market pricing.

MARKET OPPORTUNITIES

Enterprise and Training Use Cases Unlock New Market Opportunities

Beyond gaming and entertainment sectors, there is significant potential for the global head-mounted display market growth in enterprise, training, and simulation. Organizations are increasingly adopted AR, VR, and mixed reality HMDs to provide hands-on training, remote assistance, and digital twins, putting real time data, work instructions, and safety cues directly in workers’ fields of view. This is particularly beneficial in defense, aerospace, automotive, and industrial sectors, where mistakes can be costly and downtime is detrimental. As these use cases develop, they create an increasing demand for head-mounted display solutions in both civilian and defense settings. This supports market growth over the forecast period and reduces reliance on the demand for consumer VR headsets.

HEAD-MOUNTED DISPLAY MARKET TRENDS

Surge in Global Military Spending & Cross-Sector XR Expansion Fuel HMD Market Trends

Global defense budgets reached record highs in 2024, with spending rising to about USD 2.72 trillion according to the Stockholm International Peace Research Institute (SIPRI). Militaries globally are prioritizing modernization, networked systems, and improved situational awareness. This trend is creating a growing base of combat aircraft, armored vehicles, naval platforms, and infantry programs that increasingly adopted head-mounted display (HMD) solutions for real time data overlays, night-vision integration, and mixed reality navigation. At the same time, the wider use of augmented reality (AR) and virtual reality (VR), and mixed reality in business, training, and entertainment is expanding the global supply chain for optics, sensors, processors, and display waveguides. This change makes it cheaper and faster to increase HMD production for both civilian and defense uses.

The International Data Corporation (IDC) projects that shipments of AR/VR headsets, which form the technology backbone of many HMDs, will rise from 8.1 million units in 2023 to 14.3 million units in 2025. This reflects steady consumer demand and renewed investment in XR-based devices. 

MARKET CHALLENGES 

Integration Complexity and Legacy Systems Challenge Market Growth

One of the major challenges in the global head-mounted display (HMD) market is making all the components work together in real units, not just in demos. Defense customers want HMD solutions that connect to existing aircraft mission computers, vehicle vetronics, soldier radios, and battle management systems. Meanwhile, commercial users need AR/VR devices that communicate effectively with enterprise applications and IT networks. In practice, integrating real time data feeds, tracking, sensors, and mixed reality visuals into outdagted platforms is complicated and costly. This delays deployments, even though there is an increasing demand for immersive experiences and improved AR/VR.

Impact of Russia Ukraine War 

Russia-Ukraine War Accelerates Demand for Situational Awareness and Shifts toward AR/VR-Enabled HMDs 

The Russia-Ukraine conflict has changed battlefield expectations and global head-mounted display (HMD) needs. The war has demonstrated that survival now relies on real time data, quick target acquisition, and maintaining situational awareness in complex environments filled with electronic warfare. Drones, FPV strikes, loitering munitions, and dispersed infantry tactics show that soldiers and vehicle crews require better visualization tools that allow them to keep their heads up and focused, rather than looking down at screens or handheld devices. Consequently, countries in Europe and North America are quickly modernizing their forces with AR, VR, and mixed reality HMDs for operations and training; nations in Asia and the Middle East are also speeding up similar upgrades to avoid falling behind.

SIPRI reported that European defense spending rose by over 30% between 2021 and 2024, making it the fastest regional increase globally. This surge is driven largely by urgent modernization and the need to address lessons learned from Ukraine, particularly in areas such as the sensor fusion, soldier systems, and targeting aids. All these factors directly contribute to the growing demand for military HMD solutions.

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Segmentation Analysis

By Platform

Central Role of Combat Aircraft in Networked Warfare, Airborne Platforms Dominate Head-Mounted Display Market

In terms of by platform, the market is categorized into airborne platforms, dismounted soldier systems, armored vehicle & crew HMDS, naval & maritime HMDS, and others.

Airborne platforms, dominate the head-mounted display (HMD) market due to the critical need for enhanced pilot safety and operational efficiency in high-stakes environments, coupled with substantial defense budgets and ongoing aircraft modernization programs. These factors have driven significant investment and rapid technological advancement specifically for aviation applications.

Dismounted soldier systems in market is expected to show fastest CAGR of 17.5% over the forecast period.

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By Product Type

Their Role as Primary Combat Interface, Helmet-Mounted Displays Dominate Product Mix in Defense HMDs

On the basis of by product type, the market is classified into Virtual Reality (VR) HMDs, Augmented Reality (AR) HMDs / Smart Glasses, Mixed Reality (MR) HMDs, and Helmet-Mounted Displays (Aviation & Defense).

Helmet-Mounted Displays (HMDs) in aviation and defense are the leads in the head-mounted display market. In fast jets and combat helicopters, the helmet has become the main screen for pilots. Instead of looking down at cockpit instruments, aircrew now depend on helmet-mounted displays for symbology, cueing, and sensor fusion to find, track, and engage targets. They can also fly safely at low altitudes and coordinate with other platforms. This makes aviation and defense HMDs the most important and best-funded product type in the head-mounted display market.

Mixed Reality (MR) HMDs segment is expected to show fastest CAGR of 19.4% over the forecast period.

By Application

Need for Real-Time Threat Visibility, Situational Awareness and Targeting Dominates HMD Applications

Based on by application, the market is segmented into, situational awareness & targeting, pilotage & flight operations, dismounted infantry combat & urban operations, training & simulation, and others.

Situational awareness & targeting dominates the application segment in the market for head-mounted displays. In combat, the top priority is knowing where threats, friendlies, and objectives are located. This needs to happen without taking eyes off the fight. Head-mounted display (HMD) systems allow pilots, vehicle crews, and dismounted soldiers to overlay real-time data, such as sensor tracks, targeting cues, navigation, and blue-force positions, directly in their line of sight. This combination of seeing first, deciding faster, and shooting sooner makes Situational Awareness and Targeting the main reason for most AR/VR and mixed reality deployments in defense.

Dismounted infantry combat & urban operations segment is fastest CAGR of 19.2% growth the forecast period.

By Integration

Deeper Sensor and Mission-System Fusion, Fully Integrated Platform-Coupled HMDs Dominate Defense Deployments

Based on by integration, the market is segmented into fully integrated platform-coupled HMDs, semi-integrated HMDs with external sensors, standalone night-vision / low-light HMDs, HMDs with tactical network integration, and MR/XR enhanced integrated systems.

Fully integrated platform-coupled HMDs lead the integration landscape as they connect directly to an aircraft’s or vehicle’s core mission systems. In this integration, the head-mounted display (HMD) serves as the main interface for fused sensors, weapons, flight data, and tactical networks. This gives pilots and crews a single, clear mixed reality view, rather than forcing them to manage multiple screens. As a result, major air forces and advanced land programs continue to prioritize fully integrated HMDs over external sensor setups.

MR/XR enhanced integrated systems segment is expected to show fastest CAGR of 20.2% across the forecast period.

By End User

High Adoption of Modern Avionics and Sensor-Fused Helmets, Air Forces Lead HMD End-User Demand.

Further the market is segmented by end user, into air forces, land forces, special operations forces, navies & marine corps, and others.

Air Forces dominate the market for head-mounted displays. Fast jets, trainers, and rotary-wing aircraft were the first to widely adopt helmet-mounted cueing, night vision integration, and real-time data overlays. In today’s air combat, the helmet is not just protective gear; it serves as the pilot’s main mixed-reality interface for targeting, navigation, threat warnings, and off-boresight engagement. As nations upgrade their fighter fleets and enhance training programs, Air Forces will continue to account for the largest share of spending on head-mounted display (HMD) systems.

Special operations forces segment is expected to show fastest CAGR of 16.8% across the forecast period.

Head-Mounted Display Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, and Rest of the World (Middle East & Africa, and Latin America).

North America

The North America held the dominant head-mounted display market share in 2024 valuing at USD 1.40 billion and also took the leading share in 2025 with USD 1.58 billion, led primarily by the U.S., which alone contributes over 94.11% share in 2025 of the regional share. U.S. Air Forces and naval aviation have been quick to adopt helmet-mounted display (HMD) systems for fighters, bombers, transport aircraft, and rotorcraft. The Army and Marine Corps are now pushing Augmented Reality (AR), Virtual Reality (VR), and mixed reality into soldier and training use cases. The combination of large research and development budgets, a vast installed fleet, and home-grown major players in AR/VR, optics, and semiconductors means that North America sets many trends in the mounted display market that other regions follow during the forecast period. 

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In 2024, the U.S. spent about USD 997 billion on defense, which is nearly 40% of all military spending globally and more than the next nine countries combined, according to SIPRI-based analysis. This spending highlights why U.S. driven programs significantly influence the global market for head-mounted displays.

Europe

Europe is expected to see significant growth in the Head-Mounted Display (HMD) Market in the coming years. During the forecast period, the Europe region is projected to have a growth rate of 13.8%. The market in Europe is estimated to be USD 0.80 billion in 2025, driven directly by the Russia-Ukraine war. In this region, both the U.K. and France are expected to reach USD 0.17 billion and USD 0.14 billion, respectively, in 2026. Major air forces in the U.K., France, Germany, Italy, and Spain are pushing upgrades including the Striker II and other helmet-mounted displays across Eurofighter, Rafale, Typhoon, and rotary fleets. As a result, airborne HMDs still account for the largest portion of spending, driving the market growth in region.

Asia Pacific

Asia Pacific is anticipated to be the fastest growing region in the global market with a CAGR of 16.1%. China, India, Japan, Australia, and South Korea are pushing hard on networked warfare. This focus keeps airborne platforms, including the fighters and attack or utility helicopters, as the largest category for helmet-mounted displays in the area. At the same time, there is a clear increase in dismounted soldier systems and vehicle crew HMDs. Based on these factors, countries including China expect to reach a valuation of USD 0.32 billion, and India is set to reach USD 0.13 billion by 2026.

Rest of the World

Meanwhile, Rest of the world (Middle East & Africa, and Latin America) contributes 10.79% in 2025. Middle East & Africa and Latin America, has comparatively smaller in share but is growing at a CAGR of 14.6%. In the Middle East and parts of Africa, spending focuses on high-end air forces and elite ground units. Gulf States, Israel, and a few African nations are investing in helmet-mounted displays for modern fighters and attack or utility helicopters. They are also adding night-vision and targeting HMDs for Special Forces and armored units. Latin America is more selective and faces budget constraints. However, countries such as Brazil, Chile, Colombia, and Mexico are slowly integrating HMD capabilities into combat aircraft, helicopters, and some armored fleets.

COMPETITIVE LANDSCAPE

Key Industry Players

Race for Mixed-Reality Superiority Makes Global Market Competitive, Layered, and in Flux

The market for head-mounted display in defense relies on a few major players, but power dynamics are changing as AR, VR, and mixed reality transition from consumer tech into military systems. Key companies such as Elbit Systems, BAE Systems, Thales, Collins Aerospace, L3Harris Technologies, Leonardo, Honeywell, and Saab dominate helmet-mounted displays for fighters, helicopters, armored vehicles, and rotary/naval aviation. They control critical integration, which includes sensor fusion, weapon cueing, low-latency real-time data, and certification on frontline platforms. Their approach is to offer fully integrated, platform-linked HMD suites with upgrade options. This allows air forces and ground forces to start with basic symbology and night vision, then add augmented reality (AR) overlays, 360° vision, and mixed reality features over time. This strategy keeps them central to the mounted display market in aviation and high-end ground platforms.

At the same time, a second layer of competition is emerging from AR, VR, and XR specialists that started in gaming and entertainment sectors. These companies are increasingly used for training, simulation, and enterprise applications. Firms including Microsoft (HoloLens/IVAS ecosystem), Varjo, and HTC provide high-end VR headsets and AR devices that militaries are testing for immersive mission rehearsal, remote maintenance, and digital twins. Beneath them is an ecosystem of optics, waveguide, sensor, and silicon vendors that create lighter HMD hardware and enhance mixed reality performance.

LIST OF KEY HEAD-MOUNTED DISPLAY COMPANIES PROFILED

• Elbit Systems Ltd (Israel)
• RTX Corporation (U.S.)
• BAE Systems plc. (U.K.)
• Thales Group (France)
• L3Harris Technologies, Inc. (U.S.)
• Leonardo S.p.A. (Italy)
• Saab AB (Sweden)
• Honeywell International Inc. (U.S.)
• Rheinmetall AG (Germany)
• Kopin Corporation (U.S.)
• Sony Group Corporation (Japan)
• Microsoft Corporation (U.S.)
• Varjo Technologies Oy (Finland)
• HTC Corporation (Taiwan)

KEY INDUSTRY DEVELOPMENTS

• April 2025: The U.S. Air Force, through the NATO Support and Procurement Agency, awarded Thales Defense & Security Inc. a contract for Scorpion Helmet Mounted Display retrofit kits. These kits will update active-duty and Air National Guard F-16 Block 40/50 aircraft, replacing old JHMCS units with a full-color, day/night digital HMD platform.
• September 2023: Collins Elbit Vision Systems, a joint venture between RTX’s Collins Aerospace and Elbit Systems of America, received a USD 16 million contract from the U.S. Navy. This contract is for development, engineering, logistics, and test support of the Improved Joint Helmet Mounted Cueing System on Block III F/A-18E/F and EA-18G aircraft. This agreement officially launched the new Zero-G Helmet Mounted Display System+ (HMDS+).
• April 2023: Elbit Systems showcased its IronVision head-mounted display technology for armored fighting vehicles. This technology offers 360° “see-through armor” situational awareness and AR symbology to crews under closed hatches. This signals that HMD concepts are now transitioning from fighters and helicopters into main battle tanks and infantry fighting vehicles as a new trend in armor.
• November 2022: Raytheon received a USD 34 million order to support the development and integration of the MV-22 Helmet Mounted Display / Degraded Visual Environment program. This work will add new Ethernet and data-server capabilities across V-22 variants and create a common baseline for future HMD upgrades.
• July 2022: The U.S. Army began testing Elbit America’s X-Sight augmented reality helmet mounted display for helicopter pilots. The Army is exploring this technology as a potential replacement for existing monocle-based systems on AH-64 Apache and other platforms. This demonstrates growing interest in wide-FOV AR HMDs for low-level, degraded-visual-environment flight.

REPORT COVERAGE 

The global head-mounted display market analysis provides an in-depth study of market size, company profiling & forecast by all the market segments included in the report. It includes details on the market dynamics and market trends expected to drive the market during the forecast period. It offers information on the technological advancements, new product launches, key industry developments, and details on strategic partnerships, mergers & acquisitions. The market research report also encompasses detailed competitive landscape with information on the market share and profiles of market key players.

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Report Scope & Segmentation