Market Overview

The size of the domestic XR device market (HMDs and AR smartglasses) in 2024 is valued at 456 thousand units, based on the shipment volume of manufacturers. The consumer market for head-mounted displays (HMDs) came to a halt in 2024 as a result of fewer product launches. Furthermore, the total demand for head-mounted displays fell as the enterprise market's demand for extended reality (XR) devices became saturated. However, corporate demand for AR smart glasses remained robust, especially in sectors that require remote support for field services and picking operation (fulfillment).

The domestic B2B XR (VR/AR/MR) contents market is estimated to have reached 26,465 million yen in 2024, based on the sales of B2B XR content producers. Industries such as entertainment, manufacturing, energy, retail, hotels and dining services are increasingly adopting XR contents for safety education, skills training, knowledge transfer and disaster preparedness training. Demand for custom creation is rising particularly in entertainment and manufacturing industries. Nonetheless, XR content rentals and subscriptions are showing growth across industries.

Noteworthy Topics

Advanced AR Smartglasses with Integrated MR Capabilities

Corporate customers have responded positively to the release of Mixed Reality (MR) Head Mount Displays (HMDs). Looking ahead, HMD manufacturers are expected to continue investing in MR, although current applications remain relatively concentrated in industrial and manufacturing sectors. Starting in 2026, the release of advanced AR smartglasses with integrated MR capabilities is projected to increase, driven primarily by major manufacturers, but also supported by smaller players. This trend is expected to shift overall demand for smart glasses toward AR/MR devices.

Future Outlook

Domestic XR (VR/AR/MR) device market (HMDs and AR smart glasses) is forecasted to grow to 870 thousand units by 2030, based on the shipment volume of manufacturers (HMDs: 520 thousand units, AR smart glasses: 350 thousand units). The domestic market of XR contents for enterprise sector (custom creation and content provider services) is projected to reach 44,422 million yen, based on the sales of B2B XR content producers.

While challenges remain around wearability, product weight, and short battery life, Mixed Reality (MR) HMDs and AR/MR smart glasses are expected to drive the expansion of XR content applications in the enterprise sector, particularly within industrial and manufacturing fields. The value of XR content for knowledge transfer and safety training is increasingly recognized in these industries, especially against the backdrop of a persistent labor shortage. Under these circumstances, enterprise adoption of XR is projected to progress from the experimental stage to full-scale deployment, where it becomes an integral part of business infrastructure for improving operational efficiency and workplace safety. To scale the market further, the customer base must expand beyond large enterprises to include small and medium-sized businesses. To achieve this, XR content producers need to develop affordable pricing models, such as rentals or subscriptions for XR contents, while continuing to enhance content offerings, particularly for safety training application. At the same time, industry associations and local government are expected to encourage adoption by providing incentives, such as member discounts and subsidy programs.

Research Outline