ID: MRFR/ICT/0411-CRR | June, 2018 | Region: Global | 100 pages | Cooked Research Reports
Global Virtual Reality Market, Component (Hardware, Software), Device Type (Head Mounted Displays, Gesture Tracking Devices), Technology (Semi-Immersive, Full-Immersive), Industry Vertical (Consumer Electronics, Aerospace & Defense) - Forecast till 2027
The global virtual reality market is projected to witness a robust growth rate on account of continuous advances in virtual reality (VR) headsets, as per a new report by Market Research Future (MRFR). It is expected to surpass USD 100 Bn valuation by 2027, exhibiting a CAGR of 37.4% during the assessment period (2017-2027). The growth will be sustained by the increasing sales of head-mounted displays (HMDs) in gaming and entertainment sectors.
In addition, the prolific use of VR as a marketing strategy to entice users is likely to result in increased sales of HMDs. Opportunities are expected to arise from advances in networking technologies such as 5G and ready acceptance of VR headsets. High manufacturing costs pertaining to system-on-a-chip (SoC) can pose a challenge to market growth.
This report allows the user to gain a deeper understanding of the ongoing events and trends in the global market for virtual reality. By correlating the historical data with key market dynamics, analysts were able to make highly accurate projections in the report. MRFR’s report includes a thorough segmental analysis of the global virtual reality market based on component, device, technology, vertical, and region with astute insights. This report has been prepared to assist industry participants in making informed decisions on growth strategies and operation management. Users will also come across key drivers, trends, opportunities, and restraints which are likely to influence the growth of the market during the assessment period.
By component, the market has been segmented into hardware and software. The hardware segment is further branched into displays, sensors, and semiconductor components. Similarly, the software segment is sub-divided into cloud-based software and software development kits. Based on device, the market has been segmented into head-mounted displays, gesture tracking devices, projectors and display walls, and 3D cameras. By technology, the market has been segmented into non-immersive, semi-immersive, and fully immersive. Different verticals such as industrial, commercial, healthcare, consumer electronics, aerospace and defense that VR currently caters were also discussed in the report.
The segments and sub-segments covered in the report are analyzed under six major regions – North America, Latin America, Europe, Asia Pacific, the Middle East & Africa (MEA) and Rest of the World (RoW), with respective country-level market sizing.
Samsung Electronics Co. Ltd., Facebook, Google LLC, Microsoft Corporation, Sony Corporation, Sensics, Inc., Sixense Entertainment, Vuzix Corporation, EON Reality, Qualcomm, Avegant Corporation, and others are major players in the virtual reality market.
The report offers insights on prominent market players and assesses their current market share. Company information coupled with annual turnover, segmental share, SWOT analysis, growth strategies, new product launches, M&A activities, and latest R&D initiatives are outlined in the report.
At MRFR, our analysts compile our reports using a combination of primary and secondary research. Primary research entails interviewing market leaders regarding their views on the current market and their effect in the coming years. Secondary research comprises a detailed analysis of past events to predict market size estimation. Surveys and expert opinions are also mined to collaborate research. Credible resources are employed to gain a comprehensive outline of the market as well as top-down and bottom-down approaches to validate the findings. Our analysts work around the clock to study the social, economic, and cultural influences to gain astute insights of the market. Our tools and processes are used in creating reports, which lets clients make informed investment decisions for their business.
For the scope of the research, the report offers a comprehensive analysis of the global virtual reality market
By Device Type
Global Virtual Reality Market: Report Summary
The global virtual reality market is anticipated to reach USD 101.26 Bn by 2027, expanding at a stellar CAGR during the assessment period (2017-2027). Technological advances in virtual reality (VR) coupled with head-mounted displays (HMDs) is anticipated to augur market growth over the forecast period. Development of games, which provide an immersive experience to gamers and enthusiasts is expected to entice users from different age groups.
Entertainment studios and their affiliate amusement parks are leveraging the VR technology to attract consumers. Prominent companies such as Microsoft Corporation, Google, LLC, and Facebook are investing in research and development to produce comfortable devices. The user experience is a factor which can influence the future of the VR market. Future applications in sectors such as education and healthcare can pave open new avenues for the market over the forecast period.
The virtual reality market has been segmented based on component, device type, technology, industry vertical, and region. On the basis of component, the market is segmented into hardware and software. In 2016, the hardware segment commanded a major share of the global virtual reality market. Demand for HMDs coupled with the falling prices of displays is like to drive the segment’s growth in 2018 and beyond. Consumer-ready headsets to experience VR can expedite the segment growth over the forecast period.
On the basis of device type, the market has been segmented into gesture tracking devices, projectors and display walls, 3D cameras, and head-mounted displays (HMD). The HMD segment accounted for a major share of the global market in 2016. It is expected to continue its dominance over the forecast period. The gesture tracking devices segment is anticipated to gain traction due to application in defense, architecture, and design sectors. By technology, the market has been segmented into fully immersive, semi-immersive, and non-immersive. The fully immersive segment currently commands a large share of the market. This segment is expected to soar further and exhibit a 39.84% CAGR during the forecast period. Haptic gloves and other wearables are being researched by various companies to this effect. In 2018, Microsoft Corporation launched Microsoft Layout, a mobile application for VR headsets. This application lets users virtually move 3D objects on a floor plan, making it easy for architects to check their designs.
On the basis of industry vertical, the market has been segmented into industrial, commercial, healthcare, aerospace and defense, consumer electronics, and others. In 2016, the consumer electronics segment commanded the largest share of the market. Factors credited to the segment’s success are the widespread availability of smartphones, sensors and graphic cards that support VR, and increased purchase of these items by consumers.
On the basis of regions, the global virtual reality market has been segmented into North America, South America, Europe, Asia Pacific, and the Middle East and Africa.
The North America market is anticipated to expand in size at a 36.78% CAGR over the forecast period. Continuous technical advances in technology coupled with adoption of networking technologies such as 5G and long-term evolution (LTE) are expected to offer tailwinds to the market.
The Asia Pacific market is estimated to exhibit a robust growth rate during the forecast period. Companies from various sectors are relying on VR to advertise their product to consumers. Brands such as McDonald’s and Marriott International have employed VR to garner attention and gain new followers on social media. For instance, Marriott launched the Teleporter, a VR device capable of transporting viewers to various travel destinations. It uses 360-degree video with computer-generated imagery (CGI) to make viewers feel, touch, and sense beautiful sceneries.
Sensics, Inc (Columbia), Samsung Electronics (South Korea), Qualcomm Technologies, Inc (U.S.), Google, LLC (U.S.), Microsoft Corporation (U.S.), Sixense Entertainment, Inc (U.S.), Sony Corporation (Japan), Vuzix Corporation (U.S.), Facebook, Inc (U.S.), Avegant Corporation (U.S.), Eon Reality, Inc (U.S.), and others are prominent names in the virtual reality market. Upgrades in technology coupled with advances in experimental computing are expected to attract customers. Mergers and acquisitions, expansions, and investments by major players are growth strategies being employed to sustain their market position.
New Technological advancements in the field of virtual Reality market
A few players currently dominate the virtual reality market. Of all, Samsung Electronics is the leading market player. Samsung Electronics is the manufacturer of electronics and computer peripherals and also engages in selling and distribution of the same. The company’s primary strategy revolves around partnerships. Samsung has their reach all across the globe. The company firmly believes in acquisitions, could change the way enterprises progress.
Facebook takes the second spot. Facebook currently owns many applications and services such as Pagemodo Pagebuilder, RSS Graffiti, Huddle, and more. Facebook is on the verge of becoming one of the fastest companies to capture market value of nearly USD 250 billion. The strategy focuses on product development and partnership and expanding their footprint in various technology segments by the acquisition of key players in the market.
Google has successfully taken the third spot in virtual reality market. The company operates in the Americas, EMEA, and Asia Pacific region. Google has marked their footprint in hardware by introducing Nexus devices and released a number of hardware devices such as Home Smart speaker, Pixel smartphone, and VR headsets. The company focuses on both innovation and acquisition and is well-known for its technology.
Microsoft has acquired the 4th place. It offers applications for distributed computing environments, productivity applications, business solution applications, desktop and server management tools, software development tools and many more. The company operates globally and has offices in more than 190 countries. As on 30th June 2017, the total revenue of the company was USD 89.3 billion and had approximately 114,000 employees.
Sony Corporation occupies the last spot among the top five market players. The company has production centers, research and development engineers, and personalization & data centers across the globe including Japan, U.S., India, Taiwan, U.K., China, Germany, and North Korea among others with a strength of more than 128,400 employees. The company provides solutions that are specific and customizable, according to the client needs. Other prominent players in the market include Qualcomm, Vuzix Corporation, Sensics, Inc, Eon Reality, Avegant Corporation, and Sixense Entertainment among others.