USD 15.75 billion
Report ID:
SQMIG45J2070 |
Region:
Global |
Published Date: February, 2024
Pages:
270
|
Tables:
118 |
Figures:
83
Virtual Reality Market size was valued at USD 15.75 billion in 2019 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 2019. 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 2031. 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.
On the other side, the healthcare sector is expected to record the highest compounding annual growth rate between forecasted period due to the fact that VR exhibits the highest potential for medical education, therapy, and patient care. The launch of individual VR headsets denotes a significant breakthrough that has since revolutionized the VR industry. IDC predicts that VR headsets will hold the leading position by the end of 2025 as stand-alone devices become most popular among consumers due to their smaller size, portability and independence. Such transition is provided by the factors that drive consumer desire and trigger industry inventiveness.
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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Global Virtual Reality Market is segmented by component, technology, device, end user, and region. Based on component, the market can be segmented into hardware and software. Based on technology, the market is segmented into non-immersive, semi-immersive, and fully immersive technology. Based on device, the market is segmented into head-mounted display (HMD), gesture-tracking device (GTD), and projectors & display wall (PDW). Based on end user, the market is segmented into gaming, media and entertainment, healthcare, real estate, retail, military & defense and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Virtual Reality Market Analysis by Component
In the global virtual reality market show that hardware occupies the largest portion, accounting for 72.61% of the market. This supremacy among hardware is hence 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. It achieves this through content, applications, and platforms. But the hardware forms the base to have an amazing reality. On the other hand, software determines the nature of interaction, engagement, and utility for users. Thanks to the progress in VR technology, 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.
Virtual Reality Market Analysis by End User
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. The Sony Corporation’s resolve to sell 2 million pieces of the PlayStation VR 2 headset second edition is yet another proof of the growing future VR market, with the device expected to be released in February 2023. 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 success of titles like "The Walking Dead: 'Saints & Sinners' demonstrated the monetary success of VR game which outperformed the Quest platform grossing $50 mn. Consumer preferences are also important factors that influence consumers of virtual reality headsets, many of whom say that they enjoy playing video games. Furthermore, the study shows that 73% of VR users appear to be gamers. In addition, around 50% of US gamers believe that metaverse, combining VR and AR technologies, will become the game changer in the gaming industry and make them more involved in VR experiences.
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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North America is the largest market for virtual reality (VR) worldwide, being characterised by significant development of VR technology and wide acceptance of VR devices. As per the most recent statistics, a rather large proportion of the American population is not only acquainted with but also engaged with VR. Already 78% of Americans know about VR, we have a firm starting ground for further expansion within the region. In 2023, in the US, 17.7% of Americans were using VR technology on their own account which is a lot. This means that the industry is gaining momentum and the VR technology is being successfully adopted in many areas like gaming, entertainment, education, healthcare etc. It corresponds to the high adoption level which shows that VR practice becomes more and more integrated into various day-to-day activities, reflecting its ability to transform the way people engage with digital content and immersive experiences. Furthermore, there are forecasts that the use of VR and in the United States for the current year is also very exciting. According to the forecasts, about 58.9 million will use VR at least once a month. These numbers denote 17.7% of the total American population respectively, a striking increase compared to the use of these platforms in the year prior. This rise in usage demonstrates the increasing popularity of cutting-edge and interactive technologies among consumers in the US market.
Asia Pacific region is an area of the most dynamically growing segment in the global virtual reality market. According to reports, it is supposed to be colossal growth in VR sector globally. In this context, China is a key player as it is expected to lead the world in VR spending by the end of 2018, based on the findings of IDC. Chinese projection signifies the significant participation of the country in the development of VR technologies, thus portraying the country as the pioneer of both the global growth and the adoption of these technologies. It is similarly 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 she 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. China is already leading with its significant investments in VR technology and other countries in the region are likely to follow suit. 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.
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Virtual Reality Market Drivers
Implementing New and Emerging Virtual Reality Technology and Applications for the healthcare profession
VR Gaming Systems provide users with an artificially realistic and comfortable experience
Virtual Reality Market Restraints
High Cost of Equipment and Content
Technological Limitations and Challenges
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In the global VR market, the 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 has got a 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 is a 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
Apple
Samsung Electronics
Sandbox VR
Dreamscape
Matterport
Transfr
Vicarious Surgical
LiveLike
Subvrsive
Virtuix Omni
Bigscreen
Framestore
Meow Wolf
WorldViz
Meta
Talespin
Applied VR
Wevr
Unity
General Motors
Qualcomm
ImmersiveTouch
Virtual Reality Market Recent Developments
In June 2023, Apple launched the first new product in over a decade: the mixed reality headset Vision Pro. Having its cost nearly $3,500, the headset made it possible for users to superimpose pictures on their real-world environment to do things like shopping, reading articles, and video calling with friends. The headset's control was managed with eye, hand and voice commands. The inventor claimed that the device was completely able to transform the users' experience by turning their environment into an "infinite canvas." However, the device's bulkiness, external battery pack requirement and the two-hour battery time were of great concern. While Apple had courted the youth by associating with Disney, the high price appeared to suggest that it was not chasing the assumption of mass penetration.
In February in 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.
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According to our global Virtual Reality market analysis, given its immersive three-dimensional technology, virtual reality (VR) technology is frequently used in product development and training. The software segment is further subdivided into training, simulation, virtual tools, apps, game development, gamification, learning experience platforms, and segment reality. Increased expenditures by leading market participants in delivering sophisticated VR software solutions and hardware devices are positively driving market growth.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 15.75 billion |
Market size value in 2031 | USD 91.54 billion |
Growth Rate | 21.6% |
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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Historical Year | 2019 |
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Parent Market Analysis
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KEY MARKET INSIGHTS
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Market Size by Region
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For the Global 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 Global 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.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Virtual Reality Market:
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REQUEST FREE CUSTOMIZATIONVirtual Reality Market size was valued at USD 15.75 billion in 2019 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).
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