Virtual Reality Market Outlook
The global virtual reality market size was valued at USD 59.96 Billion in 2022 and is likely reach to USD 533.89 Billion by 2031, expanding at a CAGR of 27.5% during the forecast period, 2023–2031. The growth of the market is attributed to the rising penetration of smartphones & connected devices in various application sectors and growing development of the gaming industry.
Virtual reality provides stimulated experience to the customers and offers a wide range of applications to several industries such as automotive, entertainment, healthcare, gaming, and others. Moreover, virtual reality offers a wide range of applications including interactive video games, movies, and television shows.
It is considered as an excellent solution for anything that is too risky, expensive, or impractical to do in real life. The need for immersive environment gaming is quickly expanding due to the rising demand for cloud gaming and novel gaming consoles.
Furthermore, technology vendors are hugely investing in the development of display technology, which is anticipated to amend the old methodology. For example, Google is investing heavily in tech startups for the development of VR gadgets segment.
The COVID-19 pandemic has resulted in an immediate need for a huge number of healthcare institutions to handle the exponentially expanding number of infected individuals all over the world. The majority of the world's largest economies are currently focusing on developing their healthcare facilities.
In addition, the impact of this opportunity is determined by hospital plans for infrastructure expansions in terms of setting up new facilities or existing ones are retrofitted. Furthermore, a lot of market participants is anticipated to re-fuel the demand for their virtual reality in the healthcare sector.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for virtual training modules across industries and rising usage of VR technology to maintain customer relationship are expected to boost the market growth.
- Growing adoption of virtual technology in various sectors such as entertainment, virtual conference & meetings, live shows, and healthcare are another driving factors of the market growth.
- Increasing digitalization along with rising number of research activities for the development of advanced solutions is expected to upsurge the market expansion.
- Lack of required speed & power for operating the systems is anticipated to hamper the market growth in the coming years.
- Technological advancement in 5G infrastructure along with rising focus on improving customer experience by offering advanced hardware are estimated to offer great opportunity for market expansion in the coming years.
Scope of Virtual Reality Market Report
The report on the global virtual reality market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Virtual Reality Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Software and Hardware), Technology (Semi & Fully Immersive and Non-immersive), Devices (Projectors & Display Wall, Gesture-tracking Device, and Head-mounted Display), and Applications (Commercial, Healthcare, Aerospace & Defense, Enterprise, Consumer, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Ultraleap Ltd.; Barco; Facebook Technologies, LLC; CyberGlove Systems Inc.; Microsoft; Samsung Electronics Co., Ltd.; HTC Corp.; Sixense Enterprises Inc.; and Sensics, Inc.
Virtual Reality Market Segment Insights
Hardware segment is expected to grow at a rapid pace
Based on components, the global virtual reality market is bifurcated into software and hardware. The hardware segment is expected to grow at a rapid pace in the coming years due to the faster penetration of smartphones, tablets, and other advanced electronic devices.
Moreover, growing usage of VR headsets in amusement parks, commercial applications, and other places along with developments in lightweight wearable technologies are expected to boost the segment growth.
However, the software segment is expected to expand at a faster rate during the projected period owing to the introduction of advanced software function in processing incoming data, providing appropriate feedback, and managing I/O devices.
Semi & fully immersive segment is projected to expand at a considerable CAGR
On the basis of technology, the market is bifurcated into semi & fully immersive and non-immersive. The semi & fully immersive segment is projected to expand at a considerable CAGR during the forecast period due to the wide usage of this technology in several industries.
Furthermore, the technology allows students to practice physical and cognitive skills, which would not be able to do in educational or therapeutic setting.
Industry verticals including aviation, construction, entertainment, automotive, and education have all embraced the semi and fully immersive technology. For example, Boeing, a United States-based aerospace corporation, uses hard flight simulators.
However, the non-immersive segment is projected to account for a major market share during the projected period owing to wide use of the technology with a digital or computer-generated environment rather than an immersive virtual world experience. Furthermore, this technology is considered to be more efficient in terms of network administration and is more widely available.
Head-mounted display segment is estimate to gain a large revenue share
Based on devices, the global virtual reality market is segmented into projectors & display wall, gesture-tracking device, and head-mounted display. The head-mounted display (HMD) segment is estimate to gain a large revenue share in the coming years owing to the rising importance of VR HMDs in enterprise and consumer applications.
Moreover, the diversity & flexibility of HMDs such as tethered, hybrid, and self-contained HMDs are propelling the segment growth. Furthermore, HMDs are used to provide training in several industries, including aerospace, military, engineering, medicine, and research, as well as demonstrating a wide range of interactive virtual pictures.
Commercial segment is anticipated to register significant market share
On the basis of applications, the market is segregated as commercial, healthcare, aerospace & defense, enterprise, consumer, and others.
The commercial segment is anticipated to register significant market share during the forecast period owing to the rising adoption of VR headsets in the commercial sector such as real estate, car showrooms, and retail stores.
Moreover, high penetration of smartphones as well as vast application of VR technology in the commercial segment are fueling the segment growth.
However, the healthcare segment is anticipated to witness a considerable growth during the forecast period due to the upcoming tremendous opportunities for VR in the healthcare sector such as medical marketing, medical learning & training, and disease awareness.
Virtual Reality Market Regional Outlook
North America is anticipated to constitute a key market share
In terms of regions, the global virtual reality market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period due to the growing adoption of innovative technology along with increasing number of startups focusing on bringing innovative VR technologies for various industries.
As per Tracxn Technologies reports, there are 951 Virtual Reality startups operating in the US. Orbbec, JauntVR, Dreamscape, and Sandbox VR are just a handful of them.
Dreamscape is developing immersive virtual reality entertainment, based on location. The company further plans to open a VR multiplex in Los Angeles that uses untethered VR headsets. Furthermore, VR headsets powered by a computer carried in a custom backpack, allowing participants to move freely through space and interact with real & virtual objects, as well as interact with each other.
Moreover, investors are actively seeking to invest in a variety of VR technology firms based in the region. The GFR Fund, for example, has invested in 17 VR-based startup companies in North America. Such investments are projected to driving the market growth in the region during the forecast period.
- Semi & Fully Immersive
- Projectors & Display Wall
- Gesture-tracking Device
- Head-mounted Display
- Aerospace & Defense
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Ultraleap Ltd.
- Facebook Technologies, LLC
- CyberGlove Systems Inc.
- Samsung Electronics Co., Ltd.
- HTC Corp.
- Sixense Enterprises Inc.
- Sensics, Inc.
Some of the key market players competing in the global virtual reality market are Ultraleap Ltd.; Barco; Facebook Technologies, LLC; CyberGlove Systems Inc.; Microsoft; Samsung Electronics Co., Ltd.; HTC Corp.; Sixense Enterprises Inc.; and Sensics, Inc.
These key players are constantly implementing several marketing strategies such as merger & acquisitions, capital investments, partnerships, and new product development to sustain industry position in the market.
For instance, in March 2020, XRHealth has announced its first virtual reality telehealth support groups for isolated patients suffering from COVID-19, where patients with equivalent ailments can get assistance from each other and specialists associated with XRHealth telehealth clinics.
In another event, Apple Inc. purchased NextVR Inc. in order to expand its virtual reality capabilities for entertainment and sports in May 2020. Meanwhile, Facebook Technologies, LLC has acquired Ready at Dawn in June 2020, a video game development firm, with a contract to produce games for Oculus Studios that consist of immersive VR-based content.