Virtual Reality Headsets Market Size

The use of VR head-mounted displays for gaming has improved user experience to a new level because, according to a study, 64% of VR headsets are utilized for gaming applications. The game industry is evolving quickly, and virtual reality environments are now offered to users in a way that eclipses the real world. The user experience in gaming VR headsets has been enhanced by improvements in dynamic and seamless Three-Dimensional (3D) graphics and multi-resolution shading. Also, the widespread adoption of 5G networks has enhanced the use of VR in industries including entertainment, teaching, simulation, and others. During July and September 2022, around 110 million new subscriptions to 5G were added globally, bringing the total to approximately 870 million. Thus the developing gaming sector and the growing 5g users are other factors driving the growth of the virtual reality headsets market revenue.

Virtual Reality Headsets Market Segment Insights

Virtual Reality Headsets Type Insights

The Virtual Reality Headsets Market segmentation, based on type, includes handheld, PC connection, and smartphone-enabled. The handheld device dominated the market with respect to the Virtual Reality Headsets Market revenue. The electric vehicle industry created handheld controls to allow drivers and passengers to interact with cars and control infotainment systems without touching any buttons or screens.

However, the PC-enabled headset experienced the fastest growth rate. Users can enjoy VR with a PC or laptop and run VR-compatible games or apps since a PC-enabled VR gear doesn't need a digital display.

Virtual Reality Headsets Component Insights

The Virtual Reality Headsets Market data has been bifurcated by components into the controller and head-mounted display. The head-mounted display (HMD) device segment is anticipated to account for most market revenue. The variety and adaptability of HMDs, including hybrid, tethered, and self-contained HMDs, drive the segment's growth. Additionally, the controller segment witnessed the fastest growth rate in 2022. While visual gesture recognition is a unique and quickly developing technology that enables more immersive and natural human-computer interaction, this growth can be attributed to a considerable shift in demand from traditional gesture tracking to visual gesture tracking. Hence, the rising usage of the controller for virtual reality headsets positively impacts market growth.

Virtual Reality Headsets Application Insights

Based on application, the Virtual Reality Headsets Market segmentation has been segmented into the automobile, healthcare, consumer electronics, and gaming industry. In 2022, the gaming and sports segment had the greatest revenue share. Leading gaming development platforms have also increased the variety of VR games they provide, including Electronic Arts (EA), Sony Interactive Entertainment (PlayStation), and UB Soft.

February 2020: Sanzuru Games, a Bay Area VR studio, has been bought by Facebook. The acquisition will assist Facebook in exploring the VR gaming studios since Sanzuru Games has generated four titles for the Oculus Rift, including "Asgard's Wrath" and "Marvel Powers United VR. It has also created several products for console and mobile platforms, producing games based on its intellectual property alongside licensed releases for properties such as Sonic and Spyro. This approval has further broadened the growth opportunity for the virtual reality headsets industry.

The second fastest-growing segment in the virtual reality headsets industry is the healthcare sector. With the wide range of opportunities for VR in the healthcare sector, including disease awareness, medical marketing, and medical learning & training, the healthcare segment is anticipated to grow.

Virtual Reality Headsets Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Virtual Reality Headsets market accounted for USD 4.5 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Increased Internet usage in North America is one of the key factors fueling the growth of the virtual reality headset revenue industry. Since more than 92% of North Americans will have internet connectivity in 2020, live VR game streams and the quick uptake of the metaverse are fueling the growth of the VR headset industry in North America.

Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe’s virtual reality headsets market accounts for the second-largest market share. This results from the extensive use of VR technology across various industry sectors, particularly in the gaming and automotive sectors. Policymakers are promoting investments and prospects in the European VR sector, according to the European Union (EU). Further, the German virtual reality headsets market held the largest market share, and the UK virtual reality headsets market was the fastest growing market in the European region.

The Asia-Pacific Virtual Reality Headsets Market is expected to grow at the fastest CAGR from 2022 to 2030. The World Bank estimates that in Asia and the Pacific, 69% of people will have access to the internet by 2020. Demand for VR headsets in the area is being fueled by the incorporation of initiatives like 5G, the Internet of Things (IoT), and Artificial Intelligence (AI) in numerous businesses. China is a rapidly developing virtual reality headset market in this area, and since China provides affordable VR hardware components, it is the key driver of the market growth for VR headsets. Moreover, China’s virtual reality headsets market held the largest market share, and the Indian virtual reality headsets market was the fastest-growing market in the Asia-Pacific region.

Virtual Reality Headsets Key Market Players & Competitive Insights

Major market players are investing huge amounts of money in R&D to expand their product offerings, which will spur further growth in the virtual reality headset market. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their global footprint. Cost-effective products are necessary for competitors in the virtual reality headsets industry to grow and thrive in a sector that is becoming more and more competitive.

Manufacturing locally to cut operational costs is one of the main business techniques manufacturers in the global virtual reality headsets industry use to serve customers and develop the market sector. Some of the biggest advantages to medicine in recent years have come from the virtual reality headset industry. The virtual reality headsets market major player, including Oculus VR LLC (U.S.), Microsoft Corporation (U.S.), LG Electronics Inc. (South Korea), and Google (U.S.), are attempting to increase market demand by funding R&D initiatives.

HTC Corporation is a Taiwanese manufacturer of consumer electronics. The Company designs, manufactures, assembles, processes, and sells smart mobile and virtual reality products and after-sales services. Its offerings include smartphones, tablets, cameras, wearable fitness gadgets, Blockchain phones, Vive, and virtual reality headsets. In May 2021, HTC, a Taiwanese consumer electronics manufacturer, announced two VR headsets for enterprise users, the HTC Vive Pro 2 and HTC Vive focus 3, in its Vive VR product range, spanning both high-end and low-end markets. HTC has observed increased VR use in B2B areas like aerospace, public safety, health care, education, and automotive.

Also, Varjo Technologies Oy, or Varjo, is a Finnish maker of virtual reality, augmented reality, and mixed reality headgear. VR and XR headset developers aim to reinvent virtual, augmented, and mixed-reality experiences. Customers can experience photorealistic mixed reality situations using the company's headgear, which features photorealistic visual fidelity, low latency, high definition stereo, focus texture and contour, lights, shadows, and integrated eye tracking.  In October 2021, Varjo Technologies, a Finnish industrial-grade Mixed Reality (MR) firm, released VR-3 and XR-3 devices for consumer and commercial markets. This headset is compatible with a four-core processor, Radeon NVIDIA GeForce 2080, 3070, or A4000 graphics cards, and Quadro RTX 5000.

Key Companies in the virtual reality headsets market include

• Google (U.S.)


• Fove Inc. (U.S.)


• Oculus VR LLC (U.S.)


• Microsoft Corporation (U.S.)


• LG Electronics Inc. (South Korea)


• Avegant Corporation (U.S.)

Virtual Reality Headsets Industry Developments

During 4Q23, the global augmented reality and virtual reality (AR/VR) headset market expanded by 130.4% YoY with the easing macro strains and launching new products; this was established by International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker. For all of 2023, shipments of AR/VR headsets declined by 23.5% from last year’s levels, as per the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker. Macroeconomic uncertainties suppressed demand in the first half of the year while most companies relied on legacy products that were already available for at least one year, thereby experiencing two-digit decreases.

On January 19th, Apple announced that its Vision Pro headset would be available in the US starting February 2nd for $3499, with preorders beginning January 19th. In a statement made, CEO Tim Cook said, “This is the most advanced piece of consumer electronics anyone has ever made,” which came just months after unveiling mixed-reality glasses back in October. The hardware features dual ultra-high-resolution screens that offer more pixels than a 4K TV, according to Apple, and can switch between augmented reality and virtual reality through a dial on its side.

Meta Platforms CEO Mark Zuckerberg announced Quest Three, Facebook’s latest virtual reality gaming system set for release later this year during summer time; also, he spoke about Metas plans post-release, such as lowering price points on existing Quest two models while beefing up performance specs through use newer chipsets like Qualcomm-which would provide double graphics power compared predecessor model(s). In June of next year, after much speculation surrounding what exactly it might look like as well when specifically we could expect an announcement or even launch date(s), Facebook finally put rumors to rest, revealing their newest addition to the Oculus lineup dubbed simply Ques-those same people who brought us rift-s which took VR gaming industry storm back in 2016 now are ready show off next big thing realize people's dreams regarding truly immersive experiences beyond imagination this world.

April 2022 Shenzhen MetaVision Tech Co, a Chinese virtual reality (VR) solutions provider, has presented designs and specifications for its Particle All-in-One VR headset. Particle, at just 250 grams, is slated to become the world's lightest VR device, coupled with many significant advances that will revolutionize the extended worldwide reality (XR) business.

February 2022 Sony Corporation unveiled the PlayStation VR2 next-generation system and the PlayStation VR2 Feel controller. The device provides gamers with a wider range of sensations by merging cutting-edge technologies into the hardware. Two 2000x2040 OLED panels produce stunning 4K HDR graphics at up to 120fps1, providing four times the resolution of the original PlayStation VR.

Virtual Reality Headsets Market Segmentation

Virtual Reality Headsets Type Outlook

• Handheld


• PC connection


• Smartphone enabled

Virtual Reality Headsets Component Outlook

• Controller


• Head-mounted display

Virtual Reality Headsets Application Outlook

• Automobile


• Healthcare


• Consumer electronics


• Gaming Industry

Virtual Reality Headsets Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America