Virtual Reality (VR) Market Research Report - Global Forecast to 2030

Virtual Reality Market Research Report: By Component (Hardware and Software), By Device Type (Head-Mounted Displays, Gesture Tracking Device, Projectors and Display Walls and 3D Cameras), By Technology (Non-Immersive, Semi-Immersive and Fully Immersive), By Vertical (Consumer Electronics, Aerospace and Defense, Healthcare, Commercial, Industrial and others) - Forecast till 2030

ID: MRFR/ICT/0411-CR | February 2020 | Region: Global | 102 Pages         

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Virtual Reality Market

Virtual Reality Market is expected to reach USD 35.75 billion by 2030, with a CAGR of 31.53% during the review period (2020–2030).
Market Size
CAGR
Dominating Region
Forecast Period
$35.75 Billion
31.53%
North America
2020-2030
Segmentation
By Component
By Device Type
By Technology
By Vertical
  • Hardware
  • Software
  • Head-Mounted Displays
  • Gesture Tracking Device
  • Projectors and Display Walls
  • 3D Cameras
  • Non-Immersive
  • Semi-Immersive
  • Fully Immersive
  • Consumer Electronics
  • Aerospace and Defense
  • Healthcare
  • Commercial
  • Industrial
Companies Profiled
Key Players
Sony Corporation (Japan)
Microsoft Corporation (US)
Google LLC (US)
Facebook Inc (US)
Qualcomm Technologies Inc.(US)
Samsung Electronics (South Korea)
Sensics Inc. (US)
Vuzix Corporation (US)
Eon Reality Inc. (US)
Market Driving Forces
Drivers
Wide Adoption of VR Technology Drives the Market Growth
Proliferation of industry 4.0/ 5.0 to Impact the VR Market Growth Positively
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Virtual Reality Market Size and Overview


Globally, the size of the Virtual Reality Market is expected to reach USD 35.75 Billion at a CAGR of 31.53% during the forecast period 2020–2030 driven by the Wide Adoption of VR Technology Drives Market Growth.


Over recent years, VR technology has made significant strides, evolving dramatically. The virtual reality (VR) market is driven by the rising demand for head-mounted displays (HMD) in the gaming and entertainment industry and the implementation of VR as a part of the marketing strategy.



  • Nikon Corporation in April 2022 declared a partnership with Microsoft Corporation for developing and designing 3D content & virtual reality solutions. This new collaboration has been agreed upon under the new subsidiary, the Nikon Creates Corporation which aims in enhancing the content creation space.

  • Zillow, an online real-estate marketplace company, launched the Zillow 3D Home tour, an interactive media for real estate shoppers to check out houses remotely using VR technology. The company uses AI to help break down barriers between listing media like virtual tours and photos and listing data like room dimensions and square footage.

  • Sony released the VR2 and VR2 Sense Controllers for the PlayStation 5 in February 2022 to provide users with a next-level virtual reality experience that allows players to escape into the gaming world with a wide range of sensations. VR2 improves trackers and adds high visual fidelity.


Moreover, the increasing use of virtual reality technology in verticals, including consumer electronics, aerospace & defense, healthcare, commercial, industrial, and others, provides tremendous market growth opportunities.The healthcare sector is harnessing virtual reality capabilities to treat everything from pain to phobias. The rising adoption of VR technology in medicines is expected to boost the virtual reality industry.


COVID-19 Analysis


Virtual reality (VR) is one of the key multidisciplinary technology trends, integrating computers, various sensors, graphic images, communication, measurement, control multimedia, artificial intelligence, and other technologies. The coronavirus pandemic has positively impacted the virtual reality market share. When the pandemic struck and travel screeched to a halt, globetrotters felt deprived.


However, various VR service companies, such as Amazon Explore and a new Airbnb virtual reality service, hit the marketplace with cost-effective and fun services. In 2020, evolving communication systems and two-way video became primary social channels. COVID-19 has hastened innovation in many VR and virtual travel companies that have already been providing 360 technology and immersive experience to figure out how to do it on a much larger scale.



  • Gemvision, a provider of invaluable solutions for service, maintenance, and healthcare professionals, has placed a restoration order for Vuzix Corporation's M400 Smart Glasses. The replenishment order is intended to assist Gemvision in meeting remote healthcare needs related to COVID-19 in the Netherlands.


Virtual Reality Market Dynamics


Drivers


Wide Adoption of VR Technology Drives the Market Growth


Growing demand for virtual technology led by the rising uses of head-mounted (HMD) displays in the gaming and entertainment industry drives the virtual reality market growth. Implementation of Virtual reality is finding a stronger base in theme parks offering VR coaster rides by using animation techniques. Moreover, the integration of 5G with VR and advancements in fully immersive technology foster the virtual reality market share.


Virtual reality applications in healthcare are expanding, providing many benefits such as surgery simulation, robotic surgery, and skills training. The major advantage of the technology is in training and acquiring new skills in operating procedures to be practiced in a safe environment.In the diagnostics field, virtual reality helps medical practitioners obtain better insights compared to MRI scans and other methods, eliminating the need for invasive procedures or surgeries.



  • 3D-VR LiVE will launch a virtual event platform with real-time show involvement and personal interaction in March 2021.

  • Foo Fighters, a rock band, will perform on Meta's virtual stage in April 2022. Over the Meta Quest headset, the concert provided 180-degree live video.

  • Unity Software Inc. announced a partnership with live music creator Insomniac Events in March 2022 to expand into the virtual world from the physical world. The companies intend to provide live entertainment to the target audience of the next generation.


Virtual Reality Market Opportunities


The proliferation of industry 4.0/ 5.0 to Impact the VR Market Growth Positively


Industry 4.0 refers to the industrial automation that allows improved communication between self-monitoring devices and production machines substantiating the integration of machine-to-machine communication (M2M) and the internet of things (IoT). Virtual reality can give the same interaction with the IoT, offering feedback mechanisms of stimulating a person's sensations to a virtual experience.


The adoption of automation in manufacturing sectors across developing regions is expected to propel the virtual reality market growth, witnessing strong demand from several industries like healthcare and automotive. It is seen that the significant demand for VR from manufacturing industries in emerging countries would offer a host of opportunities to global firms in the future.


Restraints & Challenges


High Cost of SoC integration to Restrain Virtual Reality Market Growth


Nowadays, various smart devices and electronics products have network-embedded systems interconnected to devices to transmit useful measurement information and control instructions via virtual reality. However, the high cost of development due to the requirement of SoC integration is the major factor restraining the virtual reality market growth.


Also, security compliances and growing cyber-attacks are challenging market dynamics. Additionally, the lack of technical expertise poses challenges to the VR software market growth up to some extent.


Cumulative Growth Analysis


The Virtual Reality Market Share to Expand at a Strong Rate


Over recent years, VR technology has garnered extensive popularity and market prominence. The advancements in VR technology have been playing a causal role in maintaining industrial operations competitive and efficient. VR gaming creates a 3D environment for its users, allowing users to feel the physical presence of a game.


There are also virtual reality rooms that are armed with wearable computers and various other sensual components, which allow the players to view, move, and interconnect with the objects in the game. Resultantly, the global virtual reality market is expected to witness exponential growth over the next few years.


Segment Overview


The Virtual Reality Market is segmented on the basis of component, device type, technology, vertical, and region. The component segment is sub-segmented into hardware and software. The hardware segment is further divided into semiconductors, sensors, displays, and others. The software segment is divided into software development kits, cloud-based, and others.


The device type segment is further sub-segmented into head-mounted displays, gesture-tracking devices, projectors & display walls, 3D cameras, and others. The technology segment is sub-segmented into non-immersive, semi-immersive, and fully immersive. The vertical segment is sub-segmented into consumer electronics, aerospace & defense, healthcare, commercial, industrial, and others.



  • Memic Innovative Surgery and VirtaMed collaborated in February 2022 to develop Memic's Hominis surgical virtual reality system for surgeon training.

  • Sony Corporation introduced the new next-generation system, PlayStation VR2, as well as its new controller, PlayStation VR2 Sense, in February 2022. The device provides a wider range of sensations to players by incorporating cutting-edge technology into the hardware.

  • Liquid Avtar Technologies Inc, a fintech solutions provider, has launched the first-ever loyalty program and payment card designed specifically for the metaverse. The card is a physical card available in the United States that is powered by OptimizeFT's Engage360 payment card and digital banking solutions platform.


By regions, the market is segmented into the Americas (US, Canada, Mexico, Rest-of-North America), Europe (Germany, UK, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World.


Regional Insights


The North American Market to Maintain its Winning Streak


North America has always been the market leader and could continue to maintain its winning streak throughout the assessment period. The presence of many key players, including Google, Microsoft, Facebook Inc., and others, alongside the growing industrial sector drives virtual reality market trends.


Moreover, increasing VR applications in consumer electronics and gaming & entertainment industries propel the North American VR market size. During the assessment period, the US is expected to be the leading VR market in the region, growing at a 38.05% CAGR, followed by Canada and Mexico, registering 36.01% and 34.47% CAGR, respectively.


Europe Accounts for Second Highest Share in Global Market


Europe holds the second-leading share in the global virtual reality market. Factors such as the growing media & entertainment industry and increasing VR applications in the education and healthcare sectors foster regional market growth. The UK, Germany, and France are the major revenue contributors to the market in the region. The rising demand from the healthcare industry and manufacturing sector in the region, alongside considerable healthcare spending, boosts the virtual reality market size in the region.


APAC Accounts for a Considerable Share


Increasing investments in technology developments and the rising adoption of HMD for simulation and training purposes drive the virtual technology industry in the region. Besides, heightened demand from the burgeoning construction sector and the growth opportunities presented by end-use sectors position APAC among the key contenders globally. Japan, India, and China are the largest market for Virtual Reality Market in the region.


China dominates the APAC virtual reality market, accounting for a significant market share. On the other hand, the Indian VR market is expected to grow at 42.09% CAGR during the review period. The Asia Pacific VR market is projected to register a 40.56% CAGR during the forecast period, heading with the growing number of mobile-based VR application developers in the region.



  • For example, Agora, Inc., a Real-Time Engagement (RTE) provider, collaborated with HTC VIVE in May 2021 to implement the technology with its RTE to provide a better experience to businesses and customers.


Competitive Landscape


Players Focus on M&A Activities and R&D Investments to Gain a Larger Competitive Share


The virtual reality market appears extremely competitive, considering the strong presence of established industry players. Global vendors are increasingly facing fierce rivalry from each other and from local firms, who are growing aware of the industry's regulations and suppliers. Therefore, eminent players seek opportunities to deeply integrate across the extended value chain while focusing on expanding production facilities, R&D investments, and M&A activities to gain impetus.


Key Players and Market Share Insights



Eon Reality, Inc. is a US-based leading provider of virtual reality software, systems, and applications for the aerospace, defense, education, energy, industrial, and medical industries. Eon's immersive gesture and handheld mobile systems and development services are extensively used in the healthcare, hospitality, and education sectors. With the help of Eon's easy-to-use no-code XR platform, businesses can create, share, and track training modules, online stores, product showcases, immersive tours, stories, and more.


Recent Developments


December 29, 2020 – The Astana Ballet Theater launched its first streaming service to produce performances in 360 degrees by using VR technologies in the Kazakh capital.Also, a special mobile application for viewing performances in the VR format was created by the company, allowing spectators to literally visit the stage of the performance among the artists by using a mobile phone or wearing VR glasses. This application can give 360-degree videos that simultaneously record a view in all directions, captured with a special camera.


December 28, 2020 – While the global pandemic continues, Atmos VR announced a new £1 million investment round to develop a 4D virtual reality entertainment and esports venue.


December 17, 2020 – MYXR Inc., a SaaS software and solutions company, announced a strategic partnership with immersive solutions studio Theia Interactive. The deal would help MYXR create XR content for its new 2021 software-as-a-service (SaaS) offerings. Additionally, the partnership with Theia would add new, high-quality materials to MYXR's planned releases, including multiple versions of MYXR Engage 2.0x, as well as the new MYXR Experience Platform 3.0.


December 16, 2020 – WRAP Technologies, Inc. (the US), an innovator of modern policing solutions, announced the acquisition of NSENA Inc., a developer, and provider of a law enforcement training platform employing immersive computer graphics virtual reality with proprietary software, hardware, and content. This acquisition firmly positions WRAP in the virtual reality training market, complementing its BolaWrap law enforcement training solution.


Report Overview


Scope of the Report


The report features unique and relevant factors expected to significantly impact the virtual reality market during the forecast period. The detailed and considerable amount of information in the report would help industry players understand the Virtual Reality Market better. The MRFR report elaborates on the historical and current trends boosting the growth of the virtual reality market. Besides, the analysis of COVID-19's impact on the virtual reality market is also included in the report.


This report examines the demand-supply scenario, pricing structure, profit margins, production, and value chain analysis influencing the virtual reality market growth. Regional assessment explained in this report unlocks a plethora of untapped opportunities in regional and domestic marketplaces. Detailed company profiling in the region enables users to evaluate company shares analysis, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.


Segmentation Table


By Component



  • Hardware

  • Software

  • Services


By Device Type



  • Head-Mounted Displays

  • Gesture Tracking Device

  • Projectors & Display Walls

  • 3D Cameras

  • Others


By Technology



  • Non-Immersive

  • Semi-Immersive

  • Fully Immersive


By Vertical



  • Consumer Electronics

  • Aerospace & Defense

  • Healthcare

  • Commercial

  • Industrial

  • Others


By Region



  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)




Report Scope:

Report Attribute/Metric Details
  Market Size   USD 35.75 Billion By 2030
  CAGR   31.53% From 2020 to 2030
  Base Year   2019
  Forecast Period   2020 to 2030
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Component, Type
  Geographies Covered   North America, Europe, Asia-Pacific
  Key Vendors   Sony Corporation (Japan) Microsoft Corporation (US) Google LLC (US) Facebook Inc (US) Qualcomm Technologies Inc.(US) Samsung Electronics (South Korea) Sensics Inc. (US) Vuzix Corporation (US) Eon Reality Inc. (US)
  Key Market Opportunities   Proliferation of industry 4.0/ 5.0 to Impact the VR Market Growth Positively
  Key Market Drivers   Wide Adoption of VR Technology Drives the Market Growth


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Frequently Asked Questions (FAQ) :

The virtual reality market is expected to expand at 31.53% CAGR between 2020 and 2030.

The gaming and the entertainment industries are the highest end-users of VR market.

Microsoft Corporation (US), Google LLC (US), and Sony Corporation (Japan) are some well-known virtual reality solution providers.

The virtual reality market in North America is expected to thrive at a 36.78% CAGR and value at USD 35.75 billion by 2030.

One of the ongoing trends of the virtual reality market is its exploitation in the field of education, travel, and tourism.