Haptic Technology Market

Rising penetration of consumer electronics to drive the market’s growth

One of the key elements driving the demand for haptic technology is the rising use of consumer electronics devices like smartphones, tablets, and other wearable technology. With 6.92 billion smartphone users worldwide as of 2023, this means that 86.41% of the world's population will be smartphone owners. Haptics is almost universally included in smartphones and tablets, and the trend is moving toward their incorporation into smartwatches and wristbands.

With speedier controls, longer battery life, and user-friendly interactions, haptic feedback finds utility in wearable device technology, such as smartwatches, bracelets, and fitness trackers. These wearables' haptics enables informational communication and authentic experiences. The expanding consumer electronic industry is another factor driving the haptic technology market revenue.

The haptic technology market is upbeat due to several developments, including developing next-generation internet protocol (IP) systems that can adapt to 4G and wireless spectrums. The growing switch from analog to digital SDR is a significant growth-inducing element. SDR is anticipated to serve as the fundamental technology for the supply of telecommunications services like digital television, radio broadcasts, and video streaming channels. The market is anticipated to grow even further due to additional reasons, including the Internet of Things (IoT integration)'s with wireless technology and considerable R&D in the telecoms industry.

A staggering 42.62 billion IoT devices, sensors, and actuators will be installed worldwide in 2022. Therefore, the trend of 4G and 5G plastic has enhanced the market CAGR in recent years.

The Global Haptic Technology Market Industry is projected to experience substantial growth, with estimates indicating a rise from 12.3 USD Billion in 2024 to 50.4 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 13.65% from 2025 to 2035. The increasing integration of haptic technology across various sectors, including consumer electronics, healthcare, automotive, and gaming, is likely to drive this expansion. As industries continue to recognize the value of haptic feedback in enhancing user experience and operational efficiency, the market is poised for significant advancements in the coming years.

The Global Haptic Technology Market Industry is witnessing growth in healthcare applications, where haptic feedback is utilized in surgical simulations and training. Medical professionals increasingly rely on haptic devices to enhance their skills through realistic simulations. This trend is particularly relevant as the healthcare sector seeks to improve training methodologies and patient outcomes. The integration of haptic technology in medical devices not only aids in training but also enhances the precision of surgical procedures. As the healthcare industry continues to adopt advanced technologies, the role of haptic feedback is likely to expand, contributing to the overall growth of the market.

The Global Haptic Technology Market Industry experiences a notable surge in demand driven by the proliferation of consumer electronics. Devices such as smartphones, tablets, and gaming consoles increasingly incorporate haptic feedback to enhance user experience. In 2024, the market is projected to reach 12.3 USD Billion, reflecting a growing consumer preference for tactile interaction. As manufacturers strive to differentiate their products, the integration of haptic technology becomes a key selling point. This trend is expected to continue, with the market potentially expanding significantly as consumer electronics evolve, thereby solidifying haptic technology's role in enhancing user engagement.

The Global Haptic Technology Market Industry is experiencing increased adoption in the automotive sector, where haptic feedback is utilized to enhance driver interaction with vehicle controls. As vehicles become more technologically advanced, the integration of haptic technology in dashboards and infotainment systems is becoming commonplace. This trend is driven by the need for safer and more intuitive user interfaces. The automotive industry is expected to leverage haptic technology to improve user experience and safety, thereby contributing to the market's expansion. As consumer expectations evolve, the automotive sector's embrace of haptic technology may play a pivotal role in shaping the industry's future.

The Global Haptic Technology Market Industry is significantly influenced by advancements in gaming and virtual reality (VR). As gaming becomes more immersive, the demand for haptic feedback systems that provide realistic sensations is increasing. The integration of haptic technology in VR headsets and controllers enhances the gaming experience, making it more engaging. This sector is projected to contribute substantially to the market's growth, with a compound annual growth rate (CAGR) of 13.65% anticipated from 2025 to 2035. As developers continue to innovate, the potential for haptic technology in gaming and VR appears vast, indicating a promising future for the industry.

The Global Haptic Technology Market Industry is influenced by emerging trends in robotics and automation, where haptic feedback enhances human-robot interaction. As robots become more prevalent in various industries, the need for intuitive control systems that provide tactile feedback is increasing. This technology allows operators to feel the actions of robots, improving precision and control. The integration of haptic technology in robotics is likely to facilitate advancements in manufacturing, logistics, and service industries. As the demand for automation grows, the role of haptic feedback in enhancing operational efficiency and safety appears promising, indicating a robust future for the market.

By Region, the study provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. North America's haptic technology market accounted for USD 3.9 billion in 2021 and is expected to exhibit a significant CAGR growth of 42.3 percent during the study period. North America is projected to become the dominant region in the haptic technology market due to the existence of a major market leader like Immersion Corporation in the United States.

With the growing need for virtual reality in various applications, such as medical devices, autos, gaming, and others, the United States will dominate the North American haptic technology market. In the United States, there are 90.9 million AR users and 57.4 million VR users as of 2021.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:HAPTIC TECHNOLOGY MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's haptic technology market accounts for the second-largest market share. Growing consumer spending on technologically advanced consumer electronics propels the European haptic technology market. Europe highly demands touchscreen technology, particularly for transportation, automobile, and consumer electronics applications. As a result, Europe is expected to drive significant growth in the haptic technology industry. The region's market expansion will be driven by the technology's cumulative use in computer-generated training applications. For example, in April 2020, FundamentalVR Limited, a medical training firm based in the United Kingdom, developed a HomeVR platform based on haptic technology for medical specialists' surgical training.

Further, the German haptic technology market held the largest market share, and the UK haptic technology market was the fastest-growing market in the European region.

Asia Pacific's haptic technology market is predicted to have significant market growth. One of the primary driving factors for market expansion is rising disposable income, which has increased the use of consumer products. Many top smartphone OEMs are headquartered in China, including Huawei, Oppo, Vivo, Xiaomi, and OnePlus. China is also the largest end-user of consumer devices, such as smartphones and tablets. The number of smartphone users in China is expected to reach almost 1.04 billion by 2022.

Moreover, China's haptic technology market held the largest market share, and the Indian haptic technology market was the fastest-growing market in the Asia-Pacific region.

The market will grow as major market players make large R&D investments to broaden their product portfolios. In addition to key market developments, including new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations, market participants engage in several strategic efforts to strengthen their positions. If the rivals in the haptic technology industry want to advance and be successful in a more competitive market, they must set fair rates for their products.

One of the primary business strategies used by the haptic technology industry to satisfy clients and grow the market sector is local production to reduce operational costs. The haptic technology industry has made some of the most important medical discoveries in recent years. Haptic technology market major players, including Synaptics Incorporated (US), SMK Corporation (Japan), Haption S.A. (France), and Immersion Corporation (US), are spending money on R&D initiatives to increase demand.

Ultraleap is the world's leading mid-air haptics and 3D hand-tracking company. The company's ground-breaking haptic technology (previously known as Ultrahaptics) employs ultrasound to create rich, three-dimensional shapes and textures that can be felt but not seen. The company leverages proprietary algorithms and supporting hardware to project ultrasound-driven tactile sensations without needing controllers or touchscreens. This enables users to interface with products and devices by gestures and receiving tactile feedback.

For instance, in November 2020, Ultraleap announced a deal with IPlan Ideas Events and its subsidiary, IPlan Ideas Technology (IPI Tech), a subsidiary of the UAE-based Hawas Group, to provide Ultraleap's hand tracking and mid-air haptic technologies to clients in the UAE. IPI Tech will expose the technology to various industries, including kiosk manufacturers, retail, advertising and marketing, and theatres.

Immersion Company creates immersive and realistic experiences that use haptic technology to enhance digital interactions on mobile devices. Immersion technology has been used in various digital devices, including automotive, gaming, medical, and consumer electronics. The company's locations worldwide offer services/support, licensing options, and software to assist electronics firms in developing high-quality haptic experiences. For instance, in September 2020, Immersion inked a multi-year license renewal agreement with LG Electronics (South Korea) to continue using TouchSense software and haptic technology in mobile devices. LG is anticipated to continue using Immersion haptic software throughout its smartphone lineup.