Virtual Reality (VR) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 22.81 Billion |
| Market Size (2029) | USD 131.93 Billion |
| CAGR (2024 - 2029) | 42.05 % |
| Fastest Growing Market | North America |
| Largest Market | Latin America |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Virtual Reality (VR) Market Analysis
The Virtual Reality Market size is estimated at USD 22.81 billion in 2024, and is expected to reach USD 131.93 billion by 2029, growing at a CAGR of 42.05% during the forecast period (2024-2029).
- Virtual reality primarily uses technology to create a simulated environment. Unlike the traditional user interface, VR places the user inside an experience, which means that instead of viewing a monitor screen in front of them, users are immersed and can interact with the 3D world. With the simulation of as many senses as possible, such as vision, touch, hearing, and even smell, the technology has been transformed worldwide.
- One of the most popular reasons schools are taking advantage of VR technology is its ability to let students take field trips virtually. Field trips are a time-honored tradition for educational institutions. They allow teachers to educate their students in immersive environments and provide hands-on learning opportunities that would otherwise be difficult to achieve within the classroom. However, field trips can be financially prohibitive for some students. They can also be challenging for students with mobility limitations.
- With the rise of remote work and virtual collaboration, there is a growing demand for VR software that enables users to interact and collaborate in virtual spaces. VR meeting platforms, virtual event spaces, and collaborative design tools allow users to work together in immersive virtual environments regardless of physical location. It is also used in various industries, including healthcare, for medical training, surgical simulations, pain management, exposure therapy, and rehabilitation. The demand for VR software in healthcare is driven by its potential to improve patient outcomes, enhance medical education, and reduce healthcare costs.
- Virtual reality is emerging as a revolutionary technology that can notably impact various end-user industries. The technology is witnessing continuous growth, leading to significant expansion in the number of use cases.
- VR is usually accessed using a headset that tracks the movement of the head and eye. Some systems also use other peripherals (e.g. gloves) to simulate additional senses. This technology is expensive for many consumers, and high-end VR sets require powerful PCs or gaming consoles, which is restricting widespread adoption of the technology.
- Since the COVID-19 pandemic, remote collaboration and team-building exercises have increased. VR technology facilitated immersive and interactive experiences more than traditional videoconferencing tools. Moreover, this technology caters to the growing gaming trend globally, which facilitates gaming as a form of entertainment and helps in providing VR gaming experiences.
Virtual Reality (VR) Market Trends
Gaming to be the Fastest-growing End-user Industry
- Rapid growth in AR and VR gamers worldwide has expanded the market's horizon. According to NewGenApps, a provider of artificial intelligence, machine learning, big data analytics, and AR/VR solutions, the global user base of AR and VR games is estimated to increase to 216 million users by 2025.
- Moreover, the increasing demand for video games creates an opportunity for vendors to offer VR headsets. Uswitch's 2023 online gaming statistics revealed that approximately 40% of the global population engages in online gaming. Over the past few decades, the metaverse has evolved from local single and multiplayer experiences to a global stage, spanning countries and continents.
- Strategic initiatives like partnerships, collaborations, and mergers and acquisitions give major market players a significant chance to expand their market presence. For instance, in October 2023, Yudiz Solutions, a leading digital transformation and game development company based in Ahmedabad, India, showcased its capabilities at the India Mobile Congress 2023 by unveiling a VR combat shooting game in partnership with leading telecom operator Vodafone India (Vi). 5G technology is used to power VR combat shooting games, and users can expect a low latency experience that allows them to be responsive and interactively immersed in virtual reality.
- The increasing popularity of VR gaming among various age groups is expanding the consumer base. Introducing affordable VR handsets like the Oculus Quest series has made VR gaming accessible to a more extensive consumer base. There is a significant opportunity for developers to create more engaging VR games that can employ the unique capabilities of VR technology.
- The gaming industry recognizes the market potential of VR. As the technology becomes more accessible and affordable, the demand for VR gaming experiences is increasing. Game developers and publishers see VR as an opportunity to reach new audiences and create exciting, immersive experiences that stand out in a crowded market.
North America Holds the Largest Market Share
- The demand for VR in North America has experienced rapid growth owing to the significant shift in individuals across various sectors engaging with technology. This increasing demand is fueled by the various applications of VR technology, ranging from entertainment and gaming to education, healthcare, and enterprise solutions.
- The demand for VR is further propelled by technological advancements, making VR devices more accessible and user-friendly. The affordability and improved performance of VR headsets have contributed to broader adoption across North America, from tech enthusiasts to casual users seeking novel and engaging experiences. Hence, many companies are launching new products to increase their market share.
- Also, as VR becomes more accessible and easier to use, it offers a lot of great possibilities for the government to explore innovative approaches. Hence, the US government uses VR as a valuable tool across multiple industries. For instance, in September 2023, the US Food and Drug Administration announced that VR could deliver some clinical services, normally delivered only in clinics and hospitals, to patients in their homes or other non-clinical settings.
- Moreover, among end-user industries, the education segment is expected to grow significantly during the forecast period. North American educational institutions are integrating VR into their curricula to provide students with hands-on, experiential learning opportunities. Virtual field trips, simulations, and interactive lessons enhance the learning experience, making complex concepts more accessible and fostering a deeper understanding of various subjects.
- These factors indicate the growing demand for VR. As VR evolves and becomes more accessible, various industries will shape how individuals and industries interact with the digital era. The trajectory of VR adoption in North America suggests a future where immersive experiences become an integral part of everyday life. Hence, the abovementioned factors will boost the growth of the market studied in the future.
Virtual Reality (VR) Industry Overview
The virtual reality market is fragmented in nature. It is witnessing a rise in competitiveness among companies as VR companies are focused on providing accessibility to larger masses through gaming, entertainment, training, and marketing, among other applications. The competitive rivalry is high in this industry, owing to growth among various companies. Competition is expected to increase in the future. Some major players include Oculus VR LLC, Lenovo Group Ltd, Samsung Electronics Co. Ltd, Sony Corporation, and Pico Interactive Inc.
- In January 2024, Qualcomm Technologies announced strategic collaborations with RayNeo and Applied Materials to develop and bring the next generation of market-leading AR glasses to market. This collaboration is expected to bring together the expertise of industry-leading technology providers to redefine the future of AR glasses. RayNeo's AR glasses will utilize Qualcomm's Snapdragon AR1 Gen1 platform and Applied Materials' lightweight full-color waveguides to create a comprehensive software and hardware ecosystem for consumer-grade AR products.
- In November 2023, Pico announced the launch of PICO 4, a next-generation, all-in-one VR headset designed to make virtual reality accessible to everyone by combining comfort and performance. PICO 4 is based on the Snapdragon XR2 platform and features an ultra-light body, pancake optics, a 4K display, and an intuitive user interface.
Virtual Reality (VR) Market Leaders
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Oculus VR LLC
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Lenovo Group Ltd
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Samsung Electronics Co. Ltd.
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Sony Corporation
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Pico Interactive Inc.
*Disclaimer: Major Players sorted in no particular order
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Virtual Reality (VR) Market News
- May 2024 - frontline.io, a leader in AR/VR solutions for training and operational support, has teamed up with Hololight, the foremost expert in XR streaming solutions for industrial enterprises. This strategic partnership is set to revolutionize the enterprise XR market, focusing on training and operational support.
- May 2024 - Apparel Group, one of the leading players in the global fashion and lifestyle retail arena, has entered into a significant franchise partnership with Sandbox VR. Apparel Group's vast presence underscores the strength of this collaboration, boasting over 85 brands and a network of over 2,200 stores spanning 14 countries.
Virtual Reality (VR) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of VR in Commercial Applications
5.1.2 Growing Demand for VR Setups for Training Across Various End-user Segments
5.2 Market Challenges/Restraints
5.2.1 Health Risks from Using VR Headsets in the Longer Run
5.2.2 Impact of Cybersickness
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Hardware
6.1.1.1 Tethered HMD
6.1.1.2 Standalone HMD
6.1.1.3 Screenless Viewer
6.1.2 Software
6.2 By End-user Industry
6.2.1 Gaming
6.2.2 Media and Entertainment
6.2.3 Retail
6.2.4 Healthcare
6.2.5 Military and Defense
6.2.6 Real Estate
6.2.7 Education
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Oculus VR LLC
7.1.2 Sony Corporation
7.1.3 Samsung Electronics Co. Ltd
7.1.4 Lenovo Group Ltd
7.1.5 Pico Interactive Inc.
7.1.6 Qualcomm Technologies Inc.
7.1.7 FOVE Inc.
7.1.8 Unity Technologies Inc.
7.1.9 Unreal Engine (Epic Games Inc.)
7.1.10 Apple Inc.
7.1.11 DPVR (Lexiang Technology Co. Ltd)
7.1.12 Autodesk Inc.
7.1.13 Eon Reality Inc.
7.1.14 3D Systems Corporation
7.1.15 Dassault Systemes SE
7.1.16 HTC Vive (HTC Corporation)
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Virtual Reality (VR) Industry Segmentation
Virtual reality (VR) technology, a computer-simulated reality creating an artificial environment, is increasingly used in applications like education, gaming, and AI. This immersive multimedia offers a 3D virtual world, enhancing learning experiences and gaming environments. AI integration further enriches the virtual environment. The development of the metaverse, a collective shared space combining VR, augmented reality, mixed reality, and brain-computer interface, promises an interactive virtual reality experience. The gaming sector dominates the VR market segmented by hardware, end-user, and geography, with North America leading due to the presence of numerous startups focusing on computer-generated reality technologies.
The market is defined by the revenue accrued from the sale of virtual reality solutions to different end-user verticals worldwide.
The virtual reality (VR) market is segmented by type (hardware (tethered HMDs, standalone HMDs, and screenless viewer) and software), end-user industry (gaming, media and entertainment, retail, healthcare, military and defense, real estate, and education), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |||||
| |||||
| Software |
| By End-user Industry | |
| Gaming | |
| Media and Entertainment | |
| Retail | |
| Healthcare | |
| Military and Defense | |
| Real Estate | |
| Education |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Virtual Reality (VR) Market Research FAQs
How big is the Virtual Reality Market?
The Virtual Reality Market size is expected to reach USD 22.81 billion in 2024 and grow at a CAGR of 42.05% to reach USD 131.93 billion by 2029.
What is the current Virtual Reality Market size?
In 2024, the Virtual Reality Market size is expected to reach USD 22.81 billion.
Who are the key players in Virtual Reality Market?
Oculus VR LLC, Lenovo Group Ltd, Samsung Electronics Co. Ltd., Sony Corporation and Pico Interactive Inc. are the major companies operating in the Virtual Reality Market.
Which is the fastest growing region in Virtual Reality Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Virtual Reality Market?
In 2024, the Latin America accounts for the largest market share in Virtual Reality Market.
What years does this Virtual Reality Market cover, and what was the market size in 2023?
In 2023, the Virtual Reality Market size was estimated at USD 13.22 billion. The report covers the Virtual Reality Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Virtual Reality Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key industries driving the growth of the VR adoption?
Key industries driving the growth of the Virtual Reality (VR) adoption include gaming, education, healthcare, and automotive sectors. Each sector utilizes VR for different purposes, from training and simulations to marketing and design.
What are the key industries driving the growth of the VR adoption?
Key industries driving the growth of the Virtual Reality (VR) adoption include gaming, education, healthcare, and automotive sectors. Each sector utilizes VR for different purposes, from training and simulations to marketing and design.
Virtual Reality (VR) Industry Report
The VR market is witnessing significant growth, fueled by its expanding applications across various sectors including gaming, entertainment, healthcare, military, and education. Virtual Reality (VR) technology, known for creating immersive environments, is increasingly adopted for training, medical procedures, and customer engagement. The demand for VR is segmented into hardware, software, and content, with hardware, especially head-mounted displays (HMDs), expected to dominate due to their immersive experience capabilities. The gaming and entertainment segments are major drivers of market growth, while the healthcare sector is leveraging VR for surgical training and patient care. North America leads the market, with Asia Pacific experiencing rapid growth due to advancements in network infrastructure. Challenges such as health concerns associated with prolonged VR use persist, yet the market's potential in live virtual entertainment and healthcare applications continues to fuel its expansion. For detailed statistics on the Virtual Reality market share, size, revenue growth rate, and a market forecast outlook, refer to Mordor Intelligenceā¢ Industry Reports, offering comprehensive analysis and a free report PDF download.
