Virtual Reality Market: Global Industry Forecast (2024-2030) by Device, Technology, Component, Application and Region

Virtual Reality Market size was valued at US$ 29.49 Bn. in 2023 and the total Virtual Reality revenue is expected to grow by 15.5% from 2024 to 2030, reaching nearly US$ 80.88 Bn.

Maximize’s market analysis predicts growing usage of virtual reality technologies within 2-3 years. It is expected that virtual reality headsets will cost $200 by 2025, down from $400 in 2022. Market research predicts a $10 billion virtual reality content market by 2025. By 2025, gaming is expected to account for 50% of the global virtual reality market. Market study predicts that by 2025, healthcare will account for 25% of the global virtual reality market. According to market research, the automobile industry will contribute 10% of the virtual reality market by 2025. By 2025, the virtual reality business is expected to give 5% to education.
Virtual Reality Market Overview:
An emerging technology with significant potential to upend industries is virtual reality (VR). However, the effects of VR on businesses have mostly gone unexplored. Technological advancements may have a significant influence on businesses and necessitate the adaptation of operations, goods, and services. Virtual reality is a new technology that has the potential to transform businesses in this way. It was expected to create a billion-dollar industry already in 2023 and is said to disrupt many industries in the long term, starting with media.

This raises concerns about the influence of technology on businesses, since goods, services, procedures, or structures may need to be modified, sometimes dramatically. While VR progress has been fast in recent years, research has not kept up by offering answers to issues about how technology affects businesses.
Report Scope:
The Virtual Reality Market is segmented based on Device, Technology, Component, Application, and Region. The growth of various segments helps in acquiring knowledge of the many growth factors expected to be prevalent throughout the market and developing different strategies to help identify core application areas and the gap in the target market.

The report provides an in-depth analysis of the market and contains meaningful insights, facts, historical data, and statistically supported and industry-validated market statistics. It also includes estimates based on an appropriate set of assumptions and methodologies.

The global Virtual Reality market is highly fragmented and extremely competitive, with several local and international competitors contending for market leadership. The report discusses the Virtual Reality market’s Drivers, Restraints, Opportunities, and challenges. The report also helps to rectify and resolve issues related to the global Virtual Reality market situation.

External and internal factors that are expected to have a positive or negative effect on the market have been researched, presenting decision-makers with a clear future picture of the business. By examining market segments and estimating the Virtual Reality Market size, the studies also assist in understanding the trends and structure of the VR Market.To know about the Research Methodology:-Request Free Sample Report
Research Methodology:
The research on the Global Virtual Reality Market evaluates the market size and competitive landscape by segmenting the market and examining industry trends and attributes. The data provides a detailed assessment of the current rapid advances in all business categories.

Facts and figures, visualizations, and presentations are used to give key data analysis for the historical period from 2018 through 2023. Based on a thorough investigation of the current competitive climate in the Virtual Reality business, this MMR research provides recommendations for the business world, new entrants, current market leaders, and others.

The bottom-up strategy is used to determine market size. Primary research is conducted following secondary research to validate the information collected through secondary research. Secondary research is carried out to identify segment characteristics, qualitative and quantitative data, and the factors driving and restraining the market growth.

Secondary sources for the investigation included press releases, quarterly, monthly, and annual reports of the major players in the Virtual Reality market, government websites, and market research papers. Interviews, surveys, essential perspectives from stakeholders, experienced professionals, and other approaches required for primary research are used.
Virtual Reality Market Dynamics:
The increasing HMD penetration in the gaming and entertainment sectors is driving market growth.

HMDs are widely used in the entertainment and gaming industries. With the introduction of VR and 3D technologies, the gaming industry has undergone a technological transformation. The usage of HMDs has aided in providing a highly immersive experience for consumers and has enhanced gaming performance. The seamless transition accomplished with the usage of VR HMDs has contributed to providing consumers with a new and better experience.

HMDs are widely used in the video gaming industry nowadays. Users of video games prefer HMDs to enhance their gaming experience and adventure. HMDs project digital visuals, allowing for a 3D perspective that improves the user experience. As a result, the increasing gaming industry would increase the need for HMDs and, the need for Virtual Reality.

The COVID outbreak is expected to assist the VR market to grow. The market's leading players are concentrating their efforts on growing product sales. For example, Sony's VR technology controls some of the world's major movie, music, and gaming firms. During the lockdown and, eventually, after COVID-19, the business intends to redefine entertainment service.

To entertain consumers, the organization intends to promote VR concerts and other VR entertainment alternatives. Such activities and initiatives are expected to provide the VR industry with a new dimension and drive market growth.

The ultimate performance of VR devices is affected by display latencies and high power consumption and is a key restrain for market growth.

The primary purpose of VR-enabled equipment is to produce visuals from either a dynamic or a stationary source. Latency is defined as any delay that extends the real or perceived reaction time beyond the required response time. Latency in VR applications can be caused by several circumstances, including an imbalance in signal processing speed between the CPU and input or output devices. Users judge the device's quality based on the visual quality it shows. The overall quality of VR-enabled devices suffers when the projection is delayed.

If there is an issue with the measurement of the perspective, the location might differ from the fixed location. As a result, the VR system requires low latency to keep the virtual entity constant. When adjusting to a new scenario, the virtual object should not lag more than 15 milliseconds since this creates variations in the location of elements.

Another challenge with VR applications is energy usage. Consumers, particularly those in the gaming industry, need devices with lengthy battery life. Sensors and other network interfaces need energy as well. Because of these issues, VR systems cannot be used for an extended period.

Creating user-friendly VR systems for a better experience is a key challenge for market growth.

The major challenge for VR technology companies and developers is to create a user-friendly VR and monitoring system. A user-friendly virtual environment allows the user to effortlessly explore and interact with virtual elements. The VR system is made up of both software and hardware components.

VR systems capture a user's motions using various sensors and present them on a virtual display. The creation of VR software and virtual content is a difficult undertaking for developers since the virtual material shown must meet the expectations of the user. This would assure widespread acceptability and accelerate the penetration of VR gadgets among the wider population.
Virtual Reality Market Segment Analysis:
By Device, the head-mounted display (HMD) device segment held the largest revenue share of about xx% in 2023 and is expected to dominate the market at the end of the forecast period. The increasing significance of Virtual reality headsets in commercial and individual applications is driving segment demand. The diversity and versatility of HMDs, such as hybrid, tethered, and self-contained HMDs, are driving the market growth.

These devices are used to instruct in a variety of areas, including military, aerospace, engineering, research, and medical, and they employ interactive virtual graphics to show a wide range of use cases. Companies are continually interested in advanced technologies in this industry to give clients a more immersive experience. For example, Oculus, a Facebook Technologies, LLC firm, introduced its technologically upgraded Rift S VR headset in March 2019, which offers inside-out tracking and a higher-resolution screen than its predecessor.The gesture-tracking device (GTD) segment is expected to grow rapidly during the forecast period. This growth would be associated with a considerable shift in customer demand from normal gesture tracking to visual gesture tracking since visual gesture recognition is a unique and rapidly expanding technology that enables more immersive and natural human-computer interaction. Sensors, CPUs, VR projectors, large-screen monitors, and numerous projection systems are examples of GTD VR hardware.

Similarly, various companies are working to increase the quality of processors and sensors used in VR systems to give viewers a more immersive experience. The ongoing trend of technological goliaths releasing commercial goods has encouraged start-ups to collaborate to integrate and absorb VR advancements. To acquire a competitive advantage in the market, key organizations are considering mergers and acquisitions as well as collaborations with technological start-ups.

By Technology, the semi and fully immersive segment dominated the market with a CAGR of xx% in 2023 and is expected to maintain its dominance at the end of the forecast period. The segment's growth is due to the ongoing spike in demand for VR HMDs. In a digital platform, semi- and fully immersive technology replicate the architecture of real-world settings. It necessitates the use of complicated simulators, high-resolution monitors, and powerful PCs. Students can use VR technology to practice cognitive and motor skills that they would not be able to accomplish in an educational or therapeutic context.

Construction, aviation, entertainment, and automobile have all adopted semi- and fully immersive technologies. For example, the United States Air Force stated in March 2023 that students who want to fly the Air Force's cutting-edge stealth platforms gain the most from experimental VR fighter pilot training.Instead of an immersive virtual world experience, non-immersive technology offers viewers a computer-generated or digital environment. This technology is more widely available and is expected to be more efficient and productive in terms of network administration. Because of its restricted 2D interactivity, the technology is limited to a few applications like as gaming, design, and medical support. Non-immersive systems require computer and video game consoles, as well as input devices like controllers, a mouse, a keyboard, and screens to work correctly.

By Component, the hardware segment is expected to dominate the market at the end of the forecast period, as it held the largest market share of about xx% in 2023. The increasing adoption of smartphones, laptops, and other highly technological electronic devices is driving segment growth throughout the forecast period. Input devices, output devices, and consoles are all part of the hardware segment.

The fast usage of virtual reality headsets in business applications, theme and amusement parks, and other locations is expected to provide opportunities for advancement for Original Equipment Manufacturers (OEMs). Additionally, advances in lightweight wearable technology are expected to increase demand for Virtual Reality head-mounted monitors.The software segment is expected to grow considerably during the forecast period. This growth is due to the software's capacity to create appropriate feedback, evaluate incoming data, and handle input/output devices. Because of its immersive three-dimensional technology, VR technology is frequently used in product development and training. Training, simulation, virtual tools, apps, game creation, gamification, training experience platforms, and segment reality are subsets of the software sector.

Increasing expenditures by leading market participants in delivering innovative VR software solutions and hardware devices are positively driving the market growth. Axon Enterprise, Inc., for example, released wireless stimulators based on virtual reality in May 2023 to provide hands-on training solutions.
Virtual Reality Market Regional Insights:
The Asia-Pacific regional market held the largest revenue share of about xx% for the Virtual Reality market and dominated the market in 2023 and is expected to maintain its dominance at the end of the forecast period. This dominance is attributed to the growing improvements in Virtual Reality (VR) technology. The rising demand for head-mounted displays (HMD) in the gaming and entertainment industries is expected to drive the Asia-Pacific virtual reality market.

The market may be constrained by a lack of adequate user experience design. Additionally, the implementation of VR technology in the aerospace & military and architectural & planning sectors may operate as a significant potential that promotes market growth. Evolving threats and vulnerabilities to information security, on the other hand, may pose a challenge to the Asia-Pacific virtual reality market.

China's VR market grew substantially since the country is a key distributor of HMDs and other VR-related products. Technological improvements are also assisting in the growth of the market in Southeast Asian nations. Japan launched commercial 5G services in 2019, pushing telecom firms to employ strategic inventiveness to provide Augmented Reality (AR)/ virtual reality viewing platforms that use 5G connection. Promising measures by the state and other connected organizations, such as funding and investments to assist VR businesses, are also increasing the region's adoption of VR technology.The North American market is expected to grow substantially during the forecast period. The United States has a large presence of digitally oriented enterprises, such as Apple, Inc., Microsoft, Magic Leap, and Google LLC, and conducts substantial research in the field of virtual reality. Nevertheless, the United States government is encouraging market growth by encouraging virtual public health professional training courses. Because of growing internet penetration and developments in immersive technology, the market in South America is expected to grow substantially.

Europe is expected to be the fastest-growing regional market during the forecast period. This is owing to the extensive use of VR technology in a wide range of applications across a wide range of business sectors, especially in the videogame and automobile industries. Europe has a greater gaming population, which contributes to the region's adoption of cutting-edge VR equipment. The rapid advancement and distribution of advanced VR hardware aimed at the gaming community in European countries have sped up the regional market's growth. Meanwhile, the Middle East and Africa market is expected to grow slowly due to the delayed adoption of VR technology.
Competitive Landscape:
Apple has recently launched the Vision Pro, their wearable "spatial computing" device. The device is worn over the head, and it is a virtual/augmented reality headset similar to the PlayStation VR or Meta Quest. This is targeted at a niche audience and not for the mass for its premium experience and quality. There is a growing interest in the AR/VR space as more companies develop headsets, possibly in anticipation of a metaverse. Apple has adopted its customary approach of observing the market and waiting for other companies to establish a foothold and generate public interest before making its entry.

AR/VR headset Oculus Rift debuted in March 2016. Meta, which acquired Oculus, has developed and released VR/AR sets since 2014. Their latest product is the 2022 Meta Quest Pro. Meta gained market share over six years while Apple stayed out.

Meta, Facebook's parent corporation, is investing heavily in VR, according to recent pronouncements. Sony also aims to release the PlayStation VR2.
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Virtual Reality Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 29.49 Bn.


Forecast Period 2024 to 2030 CAGR:
15.5%
Market Size in 2030:
US $ 80.88 Bn.


 Segments Covered:
by Device
Head-mounted Display (HMD)
Gesture-tracking Device (GTD)
Projectors & Display Wall (PDW)


by Technology
Semi & Fully Immersive
Non-immersive


by Component
 Hardware
Software


by Application
Aerospace & Defense
Consumer
Commercial
Enterprise
Healthcare
Others



Virtual Reality Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina and Rest of South America)
Virtual Reality Market, Key Players are
1. Meta
2. Sony
3. Apple
4. HTC
5. Valve
6. Oculus
7. Samsung
8. Google
9. Magic Leap
10. Pico Interactive
11. Viveport
12. Matterport
13. Spatial
14. AltspaceVR
15. vSpatial
16. The Wild
17. Engage
18. Virbela
19. Mozilla Hubs
20. Sketchfab
21. Within
22. WeVR
23. Surreal
24. Baobab Studios
25. Jaunt
26. RYOT

FAQs:

1. Which is the potential market for Virtual Reality in terms of the region?
Ans. APAC is the potential market for Virtual Reality in terms of the region.

2. What are the challenges for new market entrants?
Ans. Creating user-friendly VR systems for a better experience is a key challenge for market growth.

3. What is expected to drive the growth of the Virtual Reality market in the forecast period?
Ans. The increasing HMD penetration in the gaming and entertainment sectors is driving the market growth.

4. What is the projected market size & growth rate of the Virtual Reality Market?
Ans. Virtual Reality Market size was valued at US$ 29.49 Bn. in 2023 and the total Virtual Reality revenue is expected to grow by 15.5% from 2024 to 2030, reaching nearly US$ 80.88 Bn.

5. What segments are covered in the Virtual Reality Market report?
Ans. The segments covered are Device, Technology, Component, Application, and Region.