Virtual Reality Industry Overview
The global virtual reality market size was valued at USD 21.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Virtual Reality (VR) is a digitally produced experience that simulates a three-dimensional environment in the real world. The technology provides viewers with an immersive experience using VR gadgets such as gloves, headsets or glasses, and bodysuits. Virtual Reality has revolutionized the gaming and entertainment sectors by allowing users to immerse themselves in a highly simulated environment. Furthermore, the growing use of this technology in instructional training, such as for teaching engineers, mechanics, pilots, field workers, defense warriors, and technicians in the manufacturing and oil and gas sectors, is propelling the market growth.
Apart from educational and training purposes, virtual reality is widely adopted for various other applications. For instance, the technology allows engineers to experiment with a vehicle’s design and construction at the concept stage before beginning on costly prototypes in the automobile industry. With VR exposure therapy, the technology is also used for treating people with mental health issues. Furthermore, tourism companies use VR technology to enable potential clients or customers to take a virtual tour of monuments, iconic destinations, restaurants, and hotels.
Gather more insights about the market drivers, restrains and growth of the Global Virtual Reality market
During the COVID-19 outbreak, several industries were shut down temporarily and lockdowns were imposed to arrest the spread of the virus, in turn impacting business operations across regions. However, the increasing need for businesses to continue their activities online resulted in an increased demand for VR. Companies have shifted to virtual platforms to continue their ongoing business activities, such as attending meetings and formulating policies and strategies. Additionally, VR technology is evolving as a promising tool for virtual events. Event planners provide visitors with engaging and diverse experiences by hosting the event on a virtual platform and presenting it as a virtual reality experience. As a result, the growing popularity of virtual events is encouraging market growth.
The increasing use of VR applications in the architecture and planning sector is another factor likely to foster market growth. The use of VR technology in architecture aids in decision-making and visualizing the effects of suggested urban designs and architectural plans. It also enables the early detection and correction of faults, thus saving time and money. Moreover, several real-estate agencies have begun using virtual reality to give virtual tours of properties, increasing the likelihood of a sale. For instance, in February 2021, Zillow, an online real-estate marketplace company, introduced the Zillow 3D Home tour, an interactive media for real estate shoppers, to check out houses through VR technology remotely. The company deploys AI, which supports breaking down the obstacles between listing media, such as virtual tours and photos, and listing data, such as room dimensions and square footage.
The entertainment and sports industries have gained significant benefits from VR technology. The market for virtual reality is projected to be widely adopted in location-based entertainment, gaming, theaters, and music. For instance, in 2018, Europa-Park, a German amusement park, installed VR rollercoasters called Eurostat Coastality, which allow visitors to experience a world based on the film Valerian and the City of a Thousand Planets. In 2018, China established the VR Star Theme Park, which features over 40 VR rides. The increased popularity of VR entertainment is expected to contribute to market growth.
Virtual Reality Market Segmentation
Based on the Device Insights, the market is segmented into Head-mounted Display (HMD), Gesture-tracking Device (GTD), and Projectors & Display Wall (PDW).
- The head-mounted display (HMD) device segment accounted for the largest revenue share of over 60.0% in 2021 and is expected to dominate the market from 2022 to 2030.
- The gesture-tracking device (GTD) segment is projected to register the fastest CAGR of 17.4% over the forecast period.
- Different types of GTD VR hardware include sensors, processors, VR projectors, large-screen displays, and multiple projection systems.
Based on the Technology Insights, the market is segmented into Semi & Fully Immersive and Non-immersive.
- The semi and fully immersive segment accounted for the largest revenue share of over 80.0% in 2021. It is also estimated to register the highest CAGR over the forecast period.
- The non-immersive technology provides viewers with a computer-generated or digital environment rather than an immersive virtual world experience.
Based on the Component Insights, the market is segmented into Hardware and Software.
- The hardware segment accounted for the largest revenue share of over 65.0% in 2021 and is anticipated to dominate the market over the forecast period. The rapid use of smartphones, tablets, and other technologically advanced electronic gadgets is contributing to the segment growth.
- The software segment is expected to register the highest CAGR of 17.0% over the forecast period. This can be attributed to the ability of the software to generate proper feedback, analyze incoming data, and manage input/output devices.
Based on the Application Insights, the market is segmented into Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare and Others.
- The commercial segment accounted for the largest revenue share of over 50.0% in 2021 and is anticipated to dominate the market over the forecast period.
- The healthcare segment is expected to register the highest CAGR of 19.3% over the forecast period, which can be attributed to the broad spectrum of prospects for VR in the healthcare sector, including disease awareness, medical marketing, and medical learning & training.
- The consumer segment is expected to witness significant growth over the forecast period owing to the increasing demand for VR technology in the gaming and entertainment industries.
Based on the Virtual Reality Regional Insights, the market is segmented into into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
- Asia Pacific accounted for the largest revenue share of over 40.0% in 2021, which can be attributed to the growing improvements in VR technology.
- The market growth in North America can be attributed to the growing market revenue in the U.S. The U.S. has a wide presence of technologically friendly firms, such as Apple, Inc.; Microsoft; Magic Leap; and Google LLC; and carries out extensive research activities in the field of VR.
- The market in South America is expected to grow steadily owing to the increased internet adoption and advancements in immersive technology.
- Europe is estimated to emerge as the fastest-growing regional market with a CAGR of 16.6% over the forecast period.
- The market in the Middle East and Africa is expected to witness sluggish growth owing to the slow adoption of VR technologies.
Market Share Insights:
- May 2020: Apple Inc. acquired NextVR Inc. to expand its VR capabilities for sports and entertainment.
- June 2020: Meta acquired Ready at Dawn, a VR-based video game developer, and entered into an agreement to develop games for Oculus Studios that incorporate VR-based content.
Key Companies Profile:
Key players are making significant investments in R&D to include cutting-edge technologies with a variety of features in their products. Microsoft’s Xbox Series X & Series S and Sony’s PlayStation 5 are likely to provide VR firms with new opportunities to strengthen their position in the consumer VR arena.
Some prominent players in the global Virtual Reality Market include
- CyberGlove Systems, Inc.
- HTC Corporation
- Sensics, Inc.
- Sixense Enterprises, Inc. (Penumbra, Inc.)
- Ultraleap Limited
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