USD 15.75 billion
Report ID:
SQMIG45J2070 |
Region:
Global |
Published Date: June, 2024
Pages:
270
|Tables:
118
|Figures:
83
Global Virtual Reality Market size was valued at USD 15.75 billion in 2022 and is poised to grow from USD 19.15 billion in 2023 to USD 91.54 billion by 2031, growing at a CAGR of 21.6% during the forecast period (2024-2031).
Virtual reality (VR) is one of the fastest growing and most innovative areas in the global market with technology advancements and consumer adoption being the chief drivers. Last year, the market recorded shipment of 9.86 million AR and VR devices internationally which amount is expected to rise to 14.19 million units in 2022. This spike in demand highlights the fact that VR tech has become more and more mainstream in different areas and market segments. The growth of the VR sector is largely driven by the increasing number of users, which is forecasted to reach 171 million by the end of 2023. The user base is also growing in line to the expansion of VR applications not only in gaming to other areas including healthcare, education, automotive, and advertising. The trend of the Fortune 500 companies adopting VR technologies is constantly rising, with 52% already testing or applying them, which clearly indicates the ability of the technology to improve the business operations and the experience of the customers. In spite of the increasing number of VR users, issues persist, especially the motion sickness which impacts almost 58% of the users.
However, future developments in VR related to hardware and software try to counter these issues making virtual reality more comfortable and satisfying for users. Furthermore, as the technology is widely adopted, consumer consciousness is growing as well, with over 50% of the U.S. population being already aware of VR devices. The VR market is noted for a big revenue, with predictions which say that virtual reality together with Augmented Reality can add more than $1.9 trillion to the world economy by 2030. The VR market earnings are diverse with the sectors involving gaming, healthcare, advertising, automotive and real estate. Among as the virtual reality gaming market, which is projected to experience exponentially growth as VR gaming platforms like Sony's PS VR gained over 5 million sales around the globe.
US Virtual Reality Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 15.75 billion
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
21.6% CAGR
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Virtual reality market is segmented by Component, Device, Technology, Application, and Region. Based on Component, the market can be segmented into Hardware (Sensors [Accelerometers, Gyroscopes, Magnetometers, Proximity Sensors], Semiconductor Components [Controllers & Processors, Integrated Circuits] Display & Projectors, Position Trackers, Cameras, Other Components), Software (Sdks, Cloud-based Services). Based on Device, the market is segmented into Head-mounted Displays, Gesture-tracking Devices (Data Gloves, Other Gesture-tracking Devices), Projectors & Display Walls. Based on Technology, the market is segmented into Non-immersive Technology, Semi-immersive And Fully Immersive Technology. Based on Application, the market is segmented into Consumers (Gaming & Entertainment, Sports), Commercial (Retail & Ecommerce, Education & Training, Travel & Tourism, Advertising), Enterprises (Manufacturing), Healthcare (Surgery, Patient Care Management, Fitness Management, Pharmacy Management, Medical Training & Education), Aerospace & Defense, Other Applications (Automotive, Real Estate (Architecture & Building Design), Geospatial Mining. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Component
In the virtual reality market show that hardware occupies the largest portion, accounting for 72.61% of the market. This supremacy among hardware is mostly attributed to the increasing need for VR headsets as other devices of the kind. They provide immersive experiences to users. Recognized high-end VR hardware like headsets with advanced features and functionalities usually goes with high prices and these are, almost always, the most sought-after ones and become an important part of the revenue earned from hardware. Along with the announcement of the Apple Vision Pro coinciding with the WWDC back in June 2023, the hardware significance in the VR arena only becomes clearer still. Although the product is relatively more expensive than Quest Pro Pro Meta and Meta 3, the Apple Vision Pro is a high-quality virtual reality system, therefore captured premium VR experience consumers thereby dominantly the hardware segment market.
On other hand, software is 27.39% of the size of the VR market worldwide, a smaller but still not insignificant fraction. Software becomes the foundation stone when it comes to giving the VR a start and then enhances the experience. On the other hand, software determines the nature of interaction, engagement, and utility for users. Now creators of software can develop complex and broad-raged applications capable of addressing problems in different sectors of the society. The applications media outlets include entertainment and gaming, healthcare, to workplace development and education; where VR simulations are used in the training of surgeons and manufacturers. Whereas the VR adoption continues to outpace and use cases are multiplying, demand for VR development is likely to grow as well leading to lucrative opportunities for developers and as a whole, the market of VR develops.
Analysis by Application
Consumers segment dominate the virtual reality market. Gaming is the leading one with the most developed VR ecosystem that has many devices and games, which makes the segment the biggest and most mainstream of all. Headsets such as Oculus Quest, HTC Vive, and Sony PlayStation VR have become very popular names amongst gaming aficionados, turning living rooms into a small portable VR space with each step. A proof of virtual reality (VR) technologies’ success can be seen from the VR headsets and games sales numbers that keep breaking sales records. Facebook's Meta Company announced that it has sold 471,000 Oculus Quest 2 VR headsets in the third quarter of 2022, which highlights the growing popularity among players of the virtual reality experience. For instance, VR gaming revenue is forecasted for $3.2 billion in 2024 and this shows the vast monetization possibilities in the gaming segment. Games such as Beat Saber have already been skyrocketing significant milestones, and Meta revealed that more than one third of the 400 VR games grossed $1 million each.
The healthcare segment is gradually becoming the fastest growing sector adopting VR. With an anticipated Compound Annual Growth Rate (CAGR) of 34.9%, VR technology has and will continue to revolutionize medical training, therapy, and patient care. Healthcare practitioners are resorting gradually to VR based simulations for surgical training, pain management, and mental health therapy encompassing the market for VR based solutions.
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Asia-Pacific region is an area of the most dynamically growing segment in the virtual reality market. According to reports, it is supposed to be colossal growth in VR sector globally. It is incredible that China is likely to occupy 36% of the global total VR spending by 2024. This is the significant Chinese contribution that also highlights China as the most important player that guides the global market growth. Also, China's forecasted spending significantly exceeds that of the United States and Western Europe, indicating that Chaina is the leader in the global market. The domination of Virtual Reality by China has not only affected China itself but the whole Asia-Pacific region as well. This will further accelerate the growth of the market in the Asia-Pacific region. This development proves that Asia-Pacific, led by China, is on its way for faster expansion and popularising VR technologies aided with the strong investments, increasing adoption rates, and technological advancements. Consequently, Asia-Pacific rises as the main focus of the international VR market with China on the leading edge, creating new ideas and increasing economy.
Europe is anticipated to be the most rapidly expanding regional market, with a forecasted CAGR surpassing 29.3% throughout the projection period. This burgeoning growth is catalyzed by the pervasive integration of VR technology across a multitude of applications and sectors, particularly within the realms of gaming and automotive industries. The region's substantial gaming demographic plays a pivotal role in the widespread embracement of sophisticated VR headsets. Moreover, the brisk advancement and commercial proliferation of potent VR hardware, tailored specifically for the gaming aficionados in European nations, have significantly bolstered the market's upward trajectory.
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Virtual Reality Market Drivers
Implementing New and Emerging Virtual Reality Technology and Applications for the Healthcare Profession
The VR Gaming Systems Provide Users with an Artificially Realistic and Comfortable Experience
Restraints
High Cost of Equipment and Content
Technological Limitations and Challenges
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In the VR market, competitive landscape reflects the aggressive competition of key players, seeking to seize their own market share and consolidate their place for leadership in this highly dynamic industry development. The most notable companies in the industry have got comprehensive range of VR hardware, software and content solutions. With their technological skills, strong research and development capabilities, and strategic alliances, these large players can be well positioned to offer fresh and unique products to their customers. Furthermore, niche players and new entrants challenge the incumbents with innovative VR related offerings for different segments of the market. The labour division among the hardware manufacturers, content developers and software providers are typical occurrence with the main objective of improving product ecosystems and giving users a smooth experience. Along with the immersive technologies’ rising popularity across diverse sectors, competition within the market will become even stiffer, hence creating room for innovation and development of advanced devices to suit assorted consumer and business requirements.
Virtual Reality Market Top Player’s Company Profiles
Virtual Reality Market Recent Developments
In May 2024, Sony and Siemens announced their collaboration to launch a virtual reality headset tailored for Siemens' industrial metaverse initiatives, set to debut by December 2024.
In February 2023, Meta Platforms Inc. acquired the VR strength and the known virtual reality (VR) application called Supernatural of Within Unlimited Inc. This buyout showcased Meta's understanding of Within Unlimited's VR tech expertise and Meta's eagerness to further solidify its position in the VR market.
In January 2023, HTC Corporation announced its new virtual reality and augmented reality headset named Vive XR Elite. The Vive XR Elite fitted with a high-resolution screen led users into the virtual world, showing the dedication of HTC to the provision of top-notch VR technology.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our virtual reality market analysis, market is growing and innovative fast, being taken up by many industries like gaming, entertainment, education, health and enterprise among others. The reasons behind the growth of the market are higher innovations in VR technology, growing consumer desire for immersive experiences, and increasing demand for VR in various sectors such as training, simulation, and remote collaboration. Lastly, the expansion of VR-compatible devices like VR headsets and smartphones, and the increase in the affordability and ease of access to the devices, propel market expansion.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 15.75 billion |
Market size value in 2031 | USD 91.54 billion |
Growth Rate | 21.6% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
Virtual Reality Market Recent Developments
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Virtual Reality Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Virtual Reality Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Virtual Reality Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Virtual Reality Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG45J2070