Virtual Reality Headset Market Size, Share & Industry | 2031

Report Description

The Global Virtual Reality Headset Market was valued at USD 7.8 Billion in 2022 and is projected to reach USD 72.45 Billion by 2031, expanding at a CAGR of 28.1% during the forecast period. The growth of the market is attributed to the high application of virtual reality (VR) in the automotive sectors and military.

Virtual reality headsets are a type of headgears that are attached with PCs, mobile phones, and gaming consoles to provides a real life virtual experience to the users. VR technology make utilize of near to eye display, which gets amalgamated with technical gadgets very easily. The VR has its application in various sectors apart from the gaming sector such as automotive and medical to provide superior consumer experience. The increasing product acceptance in the entertainment and gaming industries is propelling the preference for VR HMDs (Head-Mounted Devices). Several key manufacturers in the market are constantly launching innovative products that provide superior entertainment experiences and offer high quality in the VR gaming sector.

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VR technology has significant impact on the retail industry as there is significant change in the preference of the customers for virtual shopping experience. The VR provides the consumers an option to purchase products from anywhere with an in-store virtual experience. The technology enhances the buyers’ convenience such as retail-accessibility, detailed product information, and fast as well as convenient digital shopping experience. A large number of people have learned to utilize the automated & innovative Pickup Tower vending units in proper controlled settings which were used in retail stores. The COVID-19 pandemic impacted the world business due to the movement restrictions and emergency lockdown. However, the VR devices market gained its momentum during the pandemic as several industries have increasingly used these technology for several activities such as online learning and teaching activities. For example, in the U.K., training of medical professionals for the use of medical techniques are primarily conducted using the VR headsets.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand of the VR on social platforms along with fast growth of smartphones is expected to drive the market growth.
• Advantages offered by VR devices such as the profound visualization, immersive experience, creation of a realistic world, and accessibility different sites are propelling the market during the forecast period.
• Advancement in the field of technology and constant innovation in devices are major drivers for the market in the coming years.
• Expensive price of VR devices and requirement of massive capital for the installation of manufacturing units are key challenges that can restraint the market growth.
• Rising popularity and government initiatives to develop advanced VR devices are projected to offer huge opportunities for the market expansion in the coming years.

Scope of the Report

The report on the global virtual reality headset market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

High-end device segment is expected to grow at a rapid pace

Based on end devices, the global virtual reality headset market is divided into low-end device, mid-range device, and high-end device. The high-end device segment is expected to grow at a rapid pace in the coming years owing to the high quality technology and advanced features of these devices. The devices offer certain advantages such as high-quality visuals, elevated performance, and self-tracking that prove to be key factors for the market segment growth. These high-end devices are majorly adopted by large organizations for enabling them to handle large data and great performance. Large funding by key players such as Samsung; Facebook, Inc.; Sony Corp.; and Google LLC, is boosting the segment growth.

The low-end device segment, however, is also expected to register significant growth during the forecast period due to the benefits offered by the devices such as low cost, high propulsion, and immersive experience. It is highly affordable for the common population and it is the key factor for pushing the segment development.

Standalone segment is projected to expand at a considerable CAGR

On the basis of types, the market is segmented into standalone, smartphone-enabled, and standalone PC-connected. The standalone segment is projected to expand at a considerable CAGR during the forecast period owing to the impressive quality of products with very affordable price available to the public. The fundamental features of the product types such as capability to integrate various mechanisms including hardware and processing control are propelling the segment expansion. The major players are actively participating in introducing new devices with different features along with affordable price ranges.
The smartphone-enabled segment, meanwhile, is projected to exhibit fast growth in the coming years owing to the increasing penetration of smartphones in the field of VR-enabled smartphones with combination of Artificial Intelligence (AI) and 3D technology.

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Gaming segment is anticipated to exhibit a high growth rate

On the basis of applications, the global virtual reality headset market is segregated into gaming, healthcare, media & entertainment, manufacturing, retail, education, telecommunications, and others. The gaming segment is anticipated to exhibit a high growth rate in the market during the projected period owing to the increasing popularity of games in the young population. Moreover, the introduction of variety of new products with economical price ranges in the gaming sector is boosting the market segment in near future. However, the retail segment is anticipated to grow at a significant pace owing to the integration of stores with the devices and growing expansion of the online shopping.

On the other hand, the education segment is considered to register a substantial CAGR during the forecast period due to the rising use of online education in medical schools as well as educational institutes. The increased adoption of VR technology in the healthcare sector for education purposes is propelling the market in the coming future. The use of VR for the medics and surgeons training in mental health & psychological therapies, robotic surgeries, patient treatment, and physical therapies & pain management are projected to push the segment growth at a substantial rate.

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to constitute a key market share during the targeted period owing to rising expansion of the electronics industry in the region. The region accounted for a revenue share of more than 40% in 2020 due to the rising digitalization along with technology advancements in VR. The introduction of 5G in China and favorable approaches of 5G technology by governments across the region are boosting the regional market growth. Moreover, the fast growing popularity of the gaming sector in the region is a key driver of the market expansion.

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North America, however, is expected to hold a key market share during the forecast period due to increasing disposable income of a large number of the population in the region. Moreover, reduction in the price of the headsets has further fuelled the market growth. The presence of major players of the market such as Microsoft, Google LLC, and Facebook LLC in the region plays a major role that helps to bolster the market position in the region.