Augmented and Virtual Reality Spurred by Easy Mobile Access and Capable Enterprise Devices: Head Mounted Display Shipments to Reach 65 Million Units in 2020

22 Sep 2015

​All Head Mounted Display (HMD) segments will see strong growth over the coming years. The total HMD market is expected to ship around 65 million units in 2020, with a CAGR of 88%. Augmented and Virtual Reality represents the next revolution in Consumer Electronics, and at the forefront of AR and VR are HMD.

With the large and expanding install base of smartphones in all markets the potential install base for Mobile VR is high. “Tethered VR devices, such as the Oculus Rift, will be outpaced by Mobile-reliant VR devices, such as the Samsung Gear VR, thanks to lower barriers to adoption in price and hardware requirements” says Eric Abbruzzese, Research Analyst at ABI Research. Revenues for Mobile-reliant HMDs are expected to hit US$1.6 Billion in 2020, with 25 million expected units shipped. While forecasted hardware revenues for Mobile HMDs are lower than Tethered VR units, due to higher Tethered ASPs, the larger install base and lower cost of entry for Mobile VR will drive more interest from larger public. “Smartphone manufacturers such as LG, Motorola, Xiaomi, and Huawei can embrace VR through their own smartphone housing, similar to Samsung and their Gear VR. As more companies do this, the market will begin to see VR advertised as an accessory to smartphones, encouraged by user interest and lower cost,” he continues.

AR smart glasses will primarily be an enterprise-focused market for the next few years, as device costs remain high. Google Glass is as an example of how high ASPs can severely impact consumer interest, while the recent pivot for Glass to Enterprise programs shows how a high ASP does not necessarily translate into low enterprise interest. As ASPs decline, consumer interest and uptake will increase. Consequently, the smart glasses market will see a split between consumer-focused and enterprise-focused devices where enterprise devices will feature higher specifications and more concentrated use cases, and consumer devices will focus on affordability and valuable features. Enterprise smart glasses revenues are expected to make up 48% of total AR and VR HMD hardware revenues in 2020.

These findings are part of a report on Head Mounted Displays, as part of ABI Research’s Augmented Reality, Virtual Reality, and Gaming TechnologiesResearch Service, which includes Research Reports, Market Data, Insights, and Competitive Assessments.

ABI Research provides technology market research and technology intelligence for industry innovators. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit​, or call +1.516.624.2500.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Service