By technology, the market is segmented into AR and VR. The VR segment held the largest share of the market in 2025. The demand for VR is rising due to immersive experiences, advancements in hardware, growing gaming and entertainment sectors, remote collaboration needs, training applications, and increasing adoption in education, healthcare, real estate, and retail industries.
By display technology, the market is segmented into OLED, LCD, and others. The OLED segment held the largest share of the market in 2025. The demand for OLED is rising due to its superior contrast, faster response time, high color accuracy, flexible form factors, energy efficiency, and lightweight design, enhancing immersive experiences while enabling compact, high-performance wearable devices.
By device type, the market is divided into AR HMDs, VR HMDs, AR HUDs, and VR projectors. The VR HMDs segment held the largest share of the market in 2025. The demand for VR HMDs is rising due to growing adoption in gaming, training, and education, enhanced immersive experiences, advancements in display technology, decreasing device costs, and increasing interest from enterprises and consumers worldwide.
By application, the market is segmented into commercial, automotive, healthcare, aerospace & defense, industrial, and others. The aerospace & defense segment held the largest share of the market in 2025. The aerospace and defense industry increasingly adopts AR and VR displays due to enhanced pilot training, real-time mission simulation, improved maintenance efficiency, safer equipment testing, immersive situational awareness, and advanced design visualization, driving demand for these technologies.