Virtual Reality Market (Updated Version Available)

Key Market Overview:

Virtual Reality Market is estimated to reach over USD 249.52 Billion by 2030 from a value of USD 16.67 Billion in 2022, growing at a CAGR of 40.25% from 2023 to 2030.

Virtual reality (VR) refers to the use of computer technology to create a simulated environment that is experienced through a special headset or other devices. A VR environment provides users with an experience of interacting and exploring a digital world that closely resembles a physical space. A typical VR system consists of a headset, which includes a display screen and sensors to track the users movements, and hand-held controllers that allow the user to manipulate objects in the virtual environment. The VR experience is usually accompanied by spatial sound and 3D visuals that provides user an experience of immersion in the digital world.
The growing trend among consumers to seek entertainment experiences fetched by more immersive and interactive, and VR technology promotes the market growth. Increasing adoption of VR for entertainment purposes such as virtual concerts and events is driving the development of new and innovative applications for entertainment expanding the market for virtual reality. For instance, in October 2022, Meta launched a new Quest Pro headset, a standalone headset that function independently without the need of any additional hardware. The Meta Quest Pro is more powerful and offers a higher-resolution display with improved battery life and a wider field of view. Therefore, Virtual reality (VR) technology offers people the opportunity to experience the world in a highly immersive way as if they were physically present in the environment.

Virtual Reality Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	249.52 Billion
CAGR (2022-2030)	40.25 %
Base Year	2022
By Component	Hardware and Software
By Device Type	Head Mounted Display (HMD), Gesture Tracking Device, Projectors & Display Walls, and 3D Cameras.
By End Use	Consumer Electronics, Healthcare, Retail, Education, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Oculus (Meta Platforms, Inc.), Google LLC, Microsoft Corporation, Sony Interactive Entertainment LLC, HTC Corporation, Samsung Electronics Co., Ltd., Unity Software Inc., Qualcomm Incorporated, Nvidia Corporation, HaptX Inc.

Request Sample

Market Dynamics:

Driver:

The gaming industry is one of the biggest drivers of VR technology, as it allows players to immerse themselves in a more realistic and interactive gaming experience. With virtual reality, gamers explore and interact with a virtual world using a VR headset and controllers, allowing them to move and manipulate objects in the environment in a more natural and intuitive way. Moreover, the development of more powerful and affordable hardware, such as VR headsets and controllers, is making VR technology more accessible to consumers. For instance, in February 2023, Bigscreen announced the launch of the new world\'s smallest \"Beyond\" Virtual Reality headset.

Restraint:

Compatibility issues are one of the key restraints in the virtual reality (VR) market. Certain VR hardware and software providers only support specific platforms resulting in compatibility issues where games and applications designed for one platform are not functional on others. For instance, the lack of compatibility between VR headsets and other peripherals, such as motion tracking systems and controllers is limiting the options available to consumers and making it difficult for them to create the ideal VR setup.

Opportunities:

While the gaming and entertainment industries have been early adopters of VR technology, there is significant potential for VR technology creating lucrative opportunities for the market growth. For example, virtual reality is anticipated to be used for training, remote collaboration, and visualization in industries such as healthcare, education, and manufacturing. Moreover, location-based VR experiences, such as VR arcades and theme park attractions, have grown in popularity in recent years. As the technology continues to improve and become more affordable, location-based VR is expected to become more accessible to the mass market representing a significant growth opportunity.

Virtual Reality Market Segmentation:



By Component:

Based on the component, the market is bifurcated into hardware and software. The hardware segment dominates the global market due to the increasing adoption of VR technology among consumers. As VR technology becomes more accessible and affordable, more consumers are adopting VR hardware, driving the demand for hardware devices such as head-mounted displays (HMDs), input devices, and other components. For instance, in January 2023, Unity Technologies launched platform-agnostic hand tracking to its game engine providing VR developers with an easy way to add hand-tracking functionality to their VR experiences.
The software segment is anticipated to register highest CAGR during the forecast period due to the rising demand for immersive technology. As VR technology becomes more advanced, software developers are creating more sophisticated and immersive VR experiences driving innovation in areas such as graphics, audio, and artificial intelligence. The software segment includes content creation software such as game engines, 3D modeling software, and video editing software essential for creating an interactive and immersive experience.

By Device Type:

Based on the device type, the market is segmented into the head-mounted display (HMD), gesture-tracking devices, projectors & display walls, and 3D cameras. Head mount devices accounted for the highest revenue share in 2022. HMDs are the most immersive VR experience available, as the HMD covers the users eyes and ears, and tracks their head movements in order to explore the virtual environment. The high level of immersion provided by HMDs is the major reason for their adoption in gaming applications. Gamers feel that they are actually inside the game world, and HMDs provide the most immersive experience.
The gesture tracking segment is anticipated to witness significant growth during the forecast period. Gesture tracking provides a more natural and intuitive way of interacting with the virtual environment, as users use their hands to manipulate objects and navigate the virtual world. For instance, in April 2022, Meta announced to improve hand-tracking on the Meta Quest headset. By adding support for clapping, high-fives, and other hand gestures, they are improving the naturalness and intuitiveness of the user experience

By end use:

Based on the end-user, the market is segregated into consumer electronics, healthcare, retail, education, and others. The consumer electronics segment dominates the global market due to the increasing consumer demand, particularly for gaming and entertainment purposes. Virtual reality headsets and accessories are becoming increasingly popular among consumers, with companies such as Facebook-owned Oculus, HTC, and Sony leading the way. In addition to gaming and entertainment, virtual reality is also being used in sports and fitness applications.
The healthcare segment is expected to grow during the forecast period. Virtual reality technology has the potential to improve medical training and education. Healthcare professionals, especially those who work in surgery and other high-risk areas, need to be well-trained to perform their jobs effectively. Virtual reality technology provides a safe and controlled environment where healthcare professionals practice procedures and surgeries in a realistic way without putting real patients at risk. For instance, in June 2022, MediSim VR, a healthcare technology company launched Indias first virtual reality (VR) lab in Puducherry Institute of Medical Sciences (PIMS). The VR lab is designed to enhance medical education and training by providing a safe and controlled environment for students and healthcare professionals to practice procedures and surgeries.

By Region

North America dominates the global virtual reality market. The region has a well-established gaming and entertainment industry, which has driven the demand for virtual reality devices and content. The popularity of gaming in North America has provided a strong foundation for the growth of virtual reality technology, with many consumers interested in experiencing gaming in a more immersive way. Moreover, there are a large number of virtual reality start-ups in North America, particularly in the United States, which is further propelling the growth of the regional market. According to Tracxn Technologies, there are approximately 1,329 Virtual Reality startups in the United States. Some of them include Orbbec, OpenSpace, Matterport, and Sandbox VR.



The Asia-Pacific region is one of the fastest-growing markets for virtual reality technology, with countries such as China, Japan, and South Korea leading the way in terms of adoption. The region has a large population of gamers and a growing middle class, which has driven the demand for virtual reality devices and content. Furthermore, the presence of major key players such as Samsung Electronics Co. Ltd, and HTC Corporation in the region is accelerating the growth of the virtual reality market

Virtual Reality Market Competitive Landscape:

The market for Virtual Reality is witnessing a rise in competitiveness among companies. With increasing technological advancements, companies are adopting strategies for mergers and acquisitions, and product innovations to stay competitive in the market. Key players in the market include-

• Oculus (Meta Platforms, Inc.)
• Google LLC
• Microsoft Corporation
• Sony Interactive Entertainment LLC
• HTC Corporation
• Samsung Electronics Co., Ltd.
• Unity Software Inc.
• Qualcomm Incorporated
• Nvidia Corporation
• HaptX Inc.

Recent Developments

• In December 2022, BehaVR and OxfordVR merged to form a new company focused on the development of virtual reality-based mental health solutions. The new company will operate under the name OxfordVR.

• In October 2021, Unity Technologies, a leading game development company, announced the launch of Unity Gaming Services. Unity Gaming Services is a new suite of tools designed to simplify the development and management of multiplayer live games, which has in turn made it more convenient for game developers to create and operate successful online games.