Haptic Technology Global Market Opportunities and Strategies to 2033

This report describes and explains the haptic technology market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global haptic technology market reached a value of nearly $9.2 billion in 2023, having grown at a compound annual growth rate (CAGR) of 7.1% since 2018. The market is expected to grow from $9.2 billion in 2023 to $13.7 billion in 2028 at a rate of 8.2%. The market is then expected to grow at a CAGR of 9.3% from 2028 and reach $21.4 billion in 2033.

Growth in the historic period resulted from the increasing internet penetration in rural and urban areas, growing adoption of augmented reality (AR) devices, rising availability of smartphones and tablets and surge in the adoption of connected devices. Factors that negatively affected growth in the historic period were energy consumption issues.

Going forward, rising demand for IoT devices, growing penetration of consumer electronics and increase in the number of people playing video games will drive the growth. Factor that could hinder the growth of the haptic technology market in the future include high cost of haptic 3D content.

The haptic technology market is segmented by component into hardware and software. The hardware market was the largest segment of the haptic technology market segmented by component, accounting for 62.5% or $5.8 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the haptic technology market segmented by component, at a CAGR of 8.8% during 2023-2028.

The haptic technology market is segmented by device type into active haptics and passive haptics. The active haptics market was the largest segment of the haptic technology market segmented by device type, accounting for 64% or $5.9 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the haptic technology market segmented by device type, at a CAGR of 8.6% during 2023-2028.

The haptic technology market is segmented by application into consumer electronics, gaming, healthcare, research and education, automotive, commercial and industrial and other applications. The automotive market was the largest segment of the haptic technology market segmented by application, accounting for 26.1% or $2.4 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the haptic technology market segmented by application, at a CAGR of 9% during 2023-2028.

The haptic technology market is segmented by touch screen technology type into capacitive, resistive and other technologies. The capacitive market was the largest segment of the haptic technology market segmented by touch screen technology type, accounting for 56.9% or $5.3 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the haptic technology market segmented by touch screen technology type, at a CAGR of 8.6% during 2023-2028.

The haptic technology market is segmented by feedback type into tactile and force. The tactile market was the largest segment of the haptic technology market segmented by feedback type, accounting for 63.2% or $5.8 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the haptic technology market segmented by feedback type, at a CAGR of 8.6% during 2023-2028.

Asia Pacific was the largest region in the haptic technology market, accounting for 33.3% or $3.1 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the haptic technology market will be Asia Pacific and Western Europe where growth will be at CAGRs of 8.9% and 8.3% respectively. These will be followed by North America and Eastern Europe where the markets are expected to grow at CAGRs of 8.2% and 7.5% respectively.

The global haptic technology market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 20.2% of the total market in 2022. The market fragmentation can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. AAC Technologies Holdings Inc was the largest competitor with a 4.2% share of the market, followed by Nidec Corporation with 2.9%, Alps Alpine Co., Ltd with 2.8%, Cirrus Logic Inc with 2.1%, Texas Instruments Incorporated with 1.8%, Microchip Technology Incorporated with 1.6%, ON Semiconductor Corporation with 1.5%, Johnson Electric Holdings Limited with 1.3%, Renesas Electronics Corporation with 1.1% and TDK Corporation with 0.9%.

The top opportunities in the haptic technology market segmented by component will arise in the hardware segment, which will gain $2.6 billion of global annual sales by 2028. The top opportunities in the haptic technology market segmented by device type will arise in the active Haptics segment, which will gain $3 billion of global annual sales by 2028. The top opportunities in the haptic technology market segmented by application will arise in the automotive segment, which will gain $1.3 billion of global annual sales by 2028. The top opportunities in the haptic technology market segmented by feedback type will arise in the tactile segment, which will gain $3 billion of global annual sales by 2028. The top opportunities in the haptic technology market segmented by touch screen technology type will arise in the capacitive segment, which will gain $2.7 billion of global annual sales by 2028. The haptic technology market size will gain the most in the USA at $1.2 billion.

Market-trend-based strategies for the haptic technology market include focus on high-fidelity haptic systems for improved haptic feedback, integration of haptic feedback in virtual reality (VR), technology advancements in haptic motors improve performance, strategic partnerships and collaborations among market players and increasing integration of haptic technology in the automotive.

Player-adopted strategies in the haptic technology market include providing innovative and mission-critical solutions through strategic partnerships and strengthening business operations through new product launches.

To take advantage of the opportunities, the analyst recommends the haptic technology to focus on high-fidelity haptic systems, focus on integrating haptic feedback in VR, focus on advancements in haptic technology, focus on active haptics segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, provide competitively priced offerings, participate in trade shows and events and focus on automotive and gaming applications.