The global virtual reality market size was valued at USD 11.64 billion in 2021. The market is projected to grow from USD 16.67 billion in 2022 to USD 227.34 billion by 2029, exhibiting a CAGR of 45.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 42.2% in 2020 as compared to 2019.
The study includes devices and software such as Quest 2, Google Cardboard, Microsoft HoloLens 2, PlayStation Headset and Move Motion Controller, Unity Virtual Reality Development Software, among others. Virtual reality provides simulated experience to the customers and offers vast applications to industries such as retail, healthcare, automotive, gaming, and entertainment, among others. The industries are adopting this immersive technology to conduct virtual training, assistance, marketing, engineering and maintenance, designing, and simulation activities with their employees and workers. Also, the advancement in the 5G technology and infrastructure is driving the virtual reality market growth. The key market players are extensively focused on offering advanced hardware and content to improve customer experience. For instance,
Vast VR Application Across Industries Amid COVID-19 Pandemic to Boost Market Growth
The production and manufacturing plants of components, devices, equipment, and other hardware products have been severely impacted owing to the coronavirus outbreak worldwide. The temporary shutdown of industries, limited number of in-house staff, sealed country borders, and more have significantly impacted the supply of components and the delivery of final products. Thus, initially, in 2020, owing to the limited stock of virtual reality products and services, the market witnessed a small dip in its year-on-year trend, and this has impacted the overall global market.
However, in many industrial applications, the technology emerged with a true potential to support the pandemic crisis. The demand for VR technology increased in industries apart from healthcare, such as education, gaming, entertainment, manufacturing, retail, military, and defense, among others. For instance, in the initial phase of 2020, the Kansas City University Center for Medical Education Innovation integrated immersive technology for medical student's training using fully immersive simulations. Thus, amid the pandemic, the VR demand in commercial industries has increased significantly, and its advancements have surged its potential for future applications.
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Growing Potential in Healthcare Industry to Fuel Market Expansion
As per the virtual reality statistics and industry experts analysis, the healthcare industry is expected to witness significant disruption across the industry with VR applications. The technology has showcased potential in improving the healthcare provisions, patient care system, planned surgeries, and medical training, among others.
Its stimulated experience of reflecting the real-world environment is expected to surge the demand in the healthcare industry. The assisted robotic VR is helping the healthcare providers by assisting during surgeries. It also helps by providing surgical training to develop required skills. For instance,
Thus, the trending applications of virtual reality are expected to boost the market expansion.
Growing Live Virtual Entertainment to Drive Market Growth
The concept of live virtual entertainment is evolving worldwide. Today, people are preferring at-home entertainment by adopting technology to access live events or shows. As the technology offers an immersive and real-world environment to the users, its demand for live music concerts, live events, or sports is growing significantly. The concept of live virtual entertainment is evolving worldwide. Today, people are preferring at-home entertainment by adopting technology to access live events or shows. As it offers a virtual world environment to the users, its demand for live music concerts, live events, or sports is growing significantly.
Thus, the growing demand for virtual live entertainment is expected to boost the market expansion.
Requirement of High Power to Hamper Market Growth
The technology demands robust hardware components and high computing power for the proper functioning of devices. However, the majority of current desktop accessories are not compatible with applications. Similarly, most head-mounted displays are wireless and consume high energy, requiring high-energy batteries for long-duration operations. In industries such as gaming and entertainment, it is necessary to have devices with long battery life. Further, the highly connected devices and components require high-speed network bandwidth such as 5G. Thus, lack of suitable speed and power for operating the system might challenge the market growth.
Growing Investments in Advanced Hardware Offerings to Drive Market Growth
Based on component, the market is categorized into hardware, software, and content.
The hardware segment is expected to dominate the global virtual reality market share during the forecast period. The key players are highly investing in the launch and innovation of hardware. For instance, in May 2021, Axon launched its VR-based wireless simulator to provide hands-on training-focused solutions.
The software segment is likely to gain traction owing to the rising demand for immersive technology. The increasing application such as gaming, entertainment, live events, and more is enhancing the software demand. The content segment is likely to witness steady growth during the forecast period due to increasing demand for interactive environment virtual sessions. The industries are demanding new content for applications such as marketing, training, entertainment, gaming, and other sections.
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Capability to Offer Immersive Environment to Fuel Head Mounted Display Demand
Based on device type, the market is categorized into Head Mounted Display (HMD), VR simulator, VR glasses, treadmills & haptic gloves, and others.
HMD is expected to lead the market as it offers the most immersive environment. With technological development, the demand for smartphone-connected virtual reality headsets is growing due to low-cost investments such as Googles low-cost drawing board-based headsets. The adoption of HMD is significantly growing in industrial applications such as training, marketing, entertainment, and more. For instance, in April 2021, Vajro and VRM Switzerland were officially qualified by the European Union Aviation Safety Agency for virtual aviation training. The companies in collaboration have built a human-eye resolution-based headset for pilot training.
VR simulator is getting highly implemented for training, designing, and prototyping across industries as it helps reduce expenses. For instance, in March 2019, Nissan collaborated with Haptx to provide a realistic car designing virtual simulator to reduce time and investment. Similarly, with the increasing demand, gaming and entertainment industries are vastly adopting treadmills and haptic gloves. This is likely to ensure a highly immersive environment for customers. Therefore, the adoption of VR glasses for training and education is expected to grow during the forecast period.
Growing Investments in Advanced Training Tools to Boost Virtual Systems in Automotive Industry
Based on industry, the market is segmented into gaming, entertainment, automotive, retail, healthcare, education, aerospace & defense, manufacturing, and others.
The gaming and entertainment segments are expected to dominate the market during the forecast period. The existing and new players are highly investing in developing content, software, and hardware specifically for gaming purposes. The rising demand for theme parks, virtual museums, and gaming arcades is further boosting the market growth. Similarly, the retail and education industries are steadily adopting technology for various applications. This is likely to boost the VR market in the near future.
The adoption of technology in the automotive industry majorly caters to the training and education of engineers and technicians. Similarly, the implementation of VR simulators for test driving is boosting showroom customer engagement. For instance, in September 2020, Mercedes-Benz announced a partnership with Microsoft Corporation for its HoloLens 2 VR goggles and Dynamics 365 Remote Assist to improve its customer experience.
The technology has been effectively implemented across the healthcare industry. It provides visual and controlled environments for healthcare workers to perform or diagnose the issue. For instance, healthcare providers are using virtual simulators to understand Alzheimer, help autistic patients, detect impaired vision, and other applications.
North America Virtual Reality Market Size, 2021 (USD billion)
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The global market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is expected to dominate the market share over the forecast period. The significant presence of key players in the U.S. is driving the market growth in the region. Also, various start-ups are entering the U.S. market and offering industry-specific solutions. For instance, in October 2020, California-based small company, Sixense Enterprises Inc., launched a VR-based physical rehabilitation system called the REAL Immersive System. The U.S. government is also investing in virtual technology, which is likely to boost the market. For instance, the U.S. government and its army invested USD 11 billion in providing virtual, augmented, and mixed reality training sessions to its officials.
Asia Pacific shows rapid growth during the forecast period due to the increasing demand for immersive technologies in emerging economies. China is likely to gain maximum market share, as it is one of the major distributors of head-mounted VR devices and other hardware. Also, the developments in 5G networks and infrastructure in China are expected to boost the market opportunities. On the other hand, India is likely to witness significant growth owing to government initiatives and funding. Also, industries, such as entertainment, retail, automotive, education, and more, are collaborating with market players to implement the technology to enhance customer experience. For instance, in May 2021, a Real-Time Engagement (RTE) provider, Agora, Inc., collaborated with HTC VIVE to implement the technology with its RTE to offer an improved experience to businesses and customers.
Europe is likely to show significant growth during the forecast period. The region is the early adopter of virtual solutions in the automotive industry. According to the report published by the European Commission, the European virtual and augmented reality AR industry is expected to increase its production value to USD 38 billion by 2020. The U.K. and Germany are likely to gain traction owing to increasing investment in the market.
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Latin America is expected to gain steady growth owing to increasing government focus on advanced technologies and rapid installation of 5G infrastructure. The growing interest in virtual gaming and entertainment users boosts the demand in the Middle East & Africa.
Focus on Global Expansion with Innovative Products to Boost Market Share
The prominent players in the market are aiming to provide advanced virtual solutions to improve the consumer experience. The key market players such as Microsoft Corporation, Google LLC, Sony Corporation, Unity Technology, Samsung, HTC VIVE, Oculus Quest, Nvidia Corporation, among others, are offering new and innovative products applicable across industries. With the new product launches catering to the maximum application sectors, the market players are expanding their customer bases worldwide. Similarly, the key market players are entering into strategic partnerships, collaborations, and acquisitions to expand their business and product portfolio.
March 2022 Unity Software Inc. announced partnership with live music creator Insomniac Events to expand into the virtual environment from the physical world. The companies aim to offer live entertainment to the next generation's target audience.
February 2022 Sony Corporation introduced the new next-gen system, PlayStation VR2, along with its new controller PlayStation VR2 Sense. By incorporating the latest technology in the hardware, the device offers a higher range of sensations to the players.
An Infographic Representation of Virtual Reality Market
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The global virtual reality (VR) market forecast report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends, and competitive landscape and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
ATTRIBUTE
DETAILS
Study Period
2018-2029
Base Year
2021
Estimated Year
2022
Forecast Period
2022-2029
Historical Period
2018-2020
Unit
Value (USD billion)
Segmentation
By Component, Device Type, Industry, and Geography
By Component
By Device Type
By Industry
By Region
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Virtual Reality [VR] Market Size & Share | Forecast Report, 2029
- Fans still waiting for a virtual reality view of the Buffalo Bills' new ... - Buffalo News - November 28th, 2023 [November 28th, 2023]
- Immerse yourself in new, augmented worlds - University of Miami: News@theU - November 28th, 2023 [November 28th, 2023]
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- The Best Augmented Reality Accessories for AR Immersion - XR Today - November 28th, 2023 [November 28th, 2023]
- The best VR apps for 2022 | Digital Trends - February 18th, 2023 [February 18th, 2023]
- What is virtual reality? - TechTarget - February 18th, 2023 [February 18th, 2023]
- Forget the metaverse, Sony's PlayStation VR2 will make you a virtual reality believer again - British GQ - February 18th, 2023 [February 18th, 2023]
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- Virtual Reality - reddit - November 16th, 2022 [November 16th, 2022]
- The Future Of Virtual Reality (VR) - Forbes - November 16th, 2022 [November 16th, 2022]
- Virtual Reality (VR) For Professional Workflows | NVIDIA - October 28th, 2022 [October 28th, 2022]
- Virtual reality in fiction - Wikipedia - October 28th, 2022 [October 28th, 2022]
- Meta will release a new consumer-grade VR headset next year - TechCrunch - October 28th, 2022 [October 28th, 2022]
- Virtual Reality in the Healthcare Industry - VISUALISE - October 25th, 2022 [October 25th, 2022]
- Virtual Reality vs. Augmented Reality vs. Mixed Reality - Intel - October 25th, 2022 [October 25th, 2022]
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- We Met in Virtual Reality Explores the Potential of the Metaverse - Seven Days - October 19th, 2022 [October 19th, 2022]
- What If the Metaverse Is Better Without Virtual Reality? - WIRED - October 19th, 2022 [October 19th, 2022]
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- Department of Corrections Introduces Virtual Reality Technology to Augment Programming for Incarcerated Parents and Their Children - Pennsylvania... - October 19th, 2022 [October 19th, 2022]
- Arden Bendler Browning conquers virtual reality, Luve More LC + Thinkers Makers Society, and opportunity - theartblog.org - October 19th, 2022 [October 19th, 2022]
- How Virtual or Augmented Reality Can Help Your Packaging Line - Packaging Digest - October 19th, 2022 [October 19th, 2022]
- A marriage of virtual reality and physical therapy: Immergo Labs emerges from its UCSC roots - Lookout Santa Cruz - October 19th, 2022 [October 19th, 2022]
- Senior living residents explore the world through virtual reality - Rocky Mountain PBS - October 19th, 2022 [October 19th, 2022]
- Orthopedic Residency Program and PrecisionOS Team up For Exclusive 3-Year Collaboration: Virtual Reality Development and Curriculum Integration - PR... - October 19th, 2022 [October 19th, 2022]
- 6 Insightful Construction XR Cases to Read in 2022 - XR Today - October 19th, 2022 [October 19th, 2022]
- Video footage emerges from an MMA event that put virtual reality users into the thick of the fighting action - Yahoo News - October 19th, 2022 [October 19th, 2022]
- Carmack: Theres a bunch that Im grumpy about in virtual reality - Ars Technica - October 19th, 2022 [October 19th, 2022]
- The Peripheral Co-Creator on the Shows Line Between Reality & Virtual Reality - TV Insider - October 19th, 2022 [October 19th, 2022]
- Clarkson's Dr. Dana Barry Gave a Presentation at International Conference in Italy - Clarkson University News - October 19th, 2022 [October 19th, 2022]
- Apple VR glove with finger- and hand-tracking patent hints at companion accessories for the "Reality Pro" headset - Notebookcheck.net - October 19th, 2022 [October 19th, 2022]
- Virtual reality spectacle of 2010 sockeye run returns to Shuswap Salmon Arm Observer - Salmon Arm Observer - October 19th, 2022 [October 19th, 2022]
- The virtual reality push brings together Microsoft, Meta and the art of war - Stuff - October 19th, 2022 [October 19th, 2022]
- What Is Virtual Reality All About? - Oculus VR - September 20th, 2022 [September 20th, 2022]
- What Is Virtual Reality? | Tech & Learning - September 20th, 2022 [September 20th, 2022]
- 10 Advantages And Disadvantages Of Virtual Reality (2022) - September 20th, 2022 [September 20th, 2022]
- Insights on the Tactile Virtual Reality Global Market Research Report to 2027 - Growing Advancements in Virtual Reality Products & Rising... - September 20th, 2022 [September 20th, 2022]
- Each guest experience will be different: VR and the future of theme parks - The Guardian - September 20th, 2022 [September 20th, 2022]
- Get your own personal holodeck with the HP Reverb G2 VR headset, now over $100 off at Amazon - Space.com - September 20th, 2022 [September 20th, 2022]
- Highway workers got a dose of virtual reality to help keep them safe - WVXU - September 20th, 2022 [September 20th, 2022]
- IDC Tracker Sees a Long Road Ahead for Augmented Reality Headsets - Business Wire - September 20th, 2022 [September 20th, 2022]
- Anti-virtual reality note included with Northeastern explosive package - GBH News - September 20th, 2022 [September 20th, 2022]
- Virtual Reality (VR) Headset Market Projected to Hit USD 57.65 Billion at a 28.50% CAGR by 2030 - Report by Market Research Future (MRFR) -... - September 20th, 2022 [September 20th, 2022]
- Perspectus and The University of Charleston Offer Next Generation Virtual Reality Education Lab - Business Wire - September 20th, 2022 [September 20th, 2022]
- Virtual reality: Veteran on virtual trips around the world - VA News - Veterans Affairs (.gov) - September 20th, 2022 [September 20th, 2022]
- Malden Dancer Part Of Upcoming Augmented Reality Dance Project - Patch - September 20th, 2022 [September 20th, 2022]
- Cognitive load, fatigue and aversive simulator symptoms but not manipulated zeitgebers affect duration perception in virtual reality | Scientific... - September 20th, 2022 [September 20th, 2022]
- The Joys and Horrors of Virtual Reality in Anime - Otaku USA Magazine - September 20th, 2022 [September 20th, 2022]
- Robot skull measures VR and AR headsets from any angle - MIXED Reality News - September 20th, 2022 [September 20th, 2022]
- Why VR could be the new dawn of pain, anxiety management - MedCity News - September 20th, 2022 [September 20th, 2022]
- Disney Releases First AR Short Film; Is Virtual Reality the Future of Streaming at Disney+? - The Streamable - September 20th, 2022 [September 20th, 2022]
- virtual reality gaming (VR gaming) - WhatIs.com - September 2nd, 2022 [September 2nd, 2022]
- Worlds Most Immersive Virtual Reality Experience, Sandbox VR, is Coming Soon to Park Meadows - Yahoo Finance - September 2nd, 2022 [September 2nd, 2022]
- Virtual Reality Becomes Actual Reality for Title I Schools Across the Nation - PR Newswire - September 2nd, 2022 [September 2nd, 2022]
- Why is VR so important to the metaverse? - Verdict - September 2nd, 2022 [September 2nd, 2022]
- Worldwide Virtual Reality in Gaming Industry to 2027 - Rising Research Activities in the Field of VR is Driving Growth - Yahoo Finance - September 2nd, 2022 [September 2nd, 2022]
- Clocking In at the Virtual Reality Kmart - WIRED - September 2nd, 2022 [September 2nd, 2022]
- Virtual Reality Market to Register Impressive Expansion of - GlobeNewswire - September 2nd, 2022 [September 2nd, 2022]
- Welcome to the iDome: Concept offers virtual-reality riding therapy without a headset - Horsetalk - September 2nd, 2022 [September 2nd, 2022]
- Virtual Reality for Diversity and Inclusion - ATD - September 2nd, 2022 [September 2nd, 2022]
- Meta's 'Project Cambria' Virtual Reality Product to Launch This Fall - The National Interest Online - September 2nd, 2022 [September 2nd, 2022]
- Could virtual reality be the future of poultry health? - Food Safety News - September 2nd, 2022 [September 2nd, 2022]
- Virtual Reality: Taking the Online Dating Game to New Heights - TechSpective - September 2nd, 2022 [September 2nd, 2022]
- POSITIVE VIBES: The positive vibes of virtual reality - Finger Lakes Times - September 2nd, 2022 [September 2nd, 2022]
- Planning Commission to hear request for virtual reality arcade in downtown Carson City - Carson Now - September 2nd, 2022 [September 2nd, 2022]
- The Impact of Augmented Reality on the Gaming Industry in India - GLYFE Nation - September 2nd, 2022 [September 2nd, 2022]
- Oshkosh PD: Virtual reality simulator is proving to be a useful tool - WGBA NBC 26 in Green Bay - September 2nd, 2022 [September 2nd, 2022]
- Accelerating the Evolution of the Industrial Metaverse - University of Houston - September 2nd, 2022 [September 2nd, 2022]