Virtual Reality Market Analysis, Trends, Growth, Share by 2031

Coverage: Virtual Reality (VR) Market covers analysis By Component (Hardware, Software), By Device (Head-Mounted Display (HMD), Gesture-Tracking Device (GTD), Projectors & Display Wall (PDW)), By Technology (Semi & Fully Immersive, Non-immersive), By Application (Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare, Others) and Geography

  • Report Code : TIPTE100000351
  • Category : Electronics and Semiconductor
  • No. of Pages : 150
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Virtual Reality Market Analysis, Trends, Growth, Share by 2031

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[Research Report] The Virtual Reality (VR) market size is anticipated to grow from US$ 58.7 billion in 2022 to US$ 441.84 billion by 2030; it is estimated to grow at a CAGR of 28.7% from 2022 to 2030.

Virtual Reality (VR) Market Analyst Perspective:

The rising use of Virtual Reality (VR) in instructional training, such as for engineers, defense personnel, field workers, pilots, mechanics, and technicians in several industrial sectors, is boosting the virtual reality (VR) market growth. There has been a rapid growth in virtual reality (VR) gamers globally, expanding the virtual reality (VR) market prospect. According to NewGenApps, a provider of Big Data Analytics, Artificial Intelligence, Machine Learning, and AR/VR solutions, the global user base of AR and VR games is anticipated to rise to 216 million users. It will be valued at US$ 11.6 billion by 2025.

The growing adoption of user immersion technology in numerous industries, such as industrial training, education, and healthcare, among others, is anticipated to drive virtual reality (VR) market growth. Moreover, internet penetration in the form of fast 5G networks has positively impacted the acceptance of virtual reality (VR) technology owing to low latency and fast internet connections. The increasing demand for research and training across industries, such as aerospace & defense, education, and automotive, is also driving the virtual reality (VR) market growth.

Virtual Reality (VR) Market Overview:

Virtual reality (VR) includes using computer technology fundamentally to generate an artificial environment. Unlike the traditional user interface, virtual reality (VR) places the user inside an experience. With virtual reality (VR) technology, instead of watching a screen in front of them, users are immersed and can cooperate with the 3D environment. With the simulation of numerous senses, such as vision, touch, hearing, and even smell, technology has transformed worldwide. Virtual Reality (VR) reduces the line between the physical and digital world, thereby creating a perception for users of being present in the virtual environment.

The growing product launches are notably driving the virtual reality (VR) market growth. Vendors are focused on creating innovative  Virtual reality (VR) products, like headsets, smart glasses, and software platforms. To expand their product lines and increase sales, market players are introducing new products. During the projected period, the introduction of several new products is expected to propel market expansion. For instance, In Feb 2022, Sony launched VR2 Sense Controllers for the PlayStation 5 to deliver users with an enhanced Virtual Reality (VR) experience, allowing players to escape into the gaming environment with a high range of sensations.

Similarly, in July 2021, Virtex launched a virtual reality (VR) stadium, “Virtex Stadium,” which lets the fans watch the game with their friends from the center of the ground. The launch is in line with the increasing popularity of e-sports and the rising performance and affordability of virtual reality (VR)  consumer devices. Therefore, the virtual reality (VR) market is anticipated to grow during the forecast period owing to increasing applications in numerous industry verticals.

Strategic Insights

Virtual Reality (VR) Market Driver:

Increasing Adoption HMDs in Different Industries to Drive Growth of the Virtual Reality (VR) Market

Modem-equipped devices are transportable, compact, and easy to operate. They are used to present data in pictorial and graphical formats. These devices need to be compact and simple with high-quality displays. Demand for HUDs, HMDs, and VR projectors has substantially increased across numerous industries, including aerospace & defense, consumer electronics, health and transportation. VR Head-Mounted Displays (HMDs) are becoming more and more prevalent in consumer applications for gaming and entertainment. With the increasing demand and popularity for VR Head-Mounted Displays (HMDs), the principal display manufacturers are developing improved displays for VR Head-Mounted Displays (HMDs). For instance, in June 2023, Kopin, a principal provider of high-performance micro-displays and application-specific optical systems for enterprise, defense, professional and consumer markets, developed a microdisplay specifically for VR Head-Mounted Displays (HMDs).

The increasing use of virtual reality (VR) headsets in commercial and consumer applications is boosting its market demand. The growth of HMDs is attributed to the availability of a variety of HMDs, such as hybrid, tethered, and wireless Head-Mounted Displays (HMDs). The HMD devices are used to provide training in various industries, such as engineering, aerospace, research, military, and medicine, as well as to demonstrate a wide range of use cases via interactive features. Further, to bid customers an improved immersive experience, companies are focusing on technological advancements. For instance, in January 2023, Sharp introduced a head-mounted display (HMD) prototype for VR with smartphone connectivity. The HMD devices are used to train individuals in a variety of fields, including aerospace, research, engineering, military, and healthcare, as well as to show an extensive range of application cases using interactive elements. Virtual reality (VR) headset demand is fueled by the technology's expanding usage in both commercial and consumer applications. Therefore, the increasing demand for HMDs is expected to drive the virtual reality (VR) market growth during the forecast period.

Virtual Reality (VR) Market Segmental Analysis:

The Gesture-Tracking Device (GTD) segment is expected to grow at the fastest CAGR during the forecast period. The GTD segment growth can be attributed to the rise in demand from basic gesture tracing to visually immersive gesture tracing, as gesture tracing is an advanced and extensively applied technology that enables added immersive and nearly natural interaction. The numerous types of GTD virtual reality (VR) hardware include virtual reality (VR) projectors, sensors, processors, large displays, and multi-screen projection systems. Furthermore, numerous firms are also involved in enhancing the efficiency of processors and sensors used in virtual reality (VR)  systems to deliver a significantly immersive experience to end-users.

The commercial segment accounted for the principal revenue share in 2022. The rising use of virtual reality (VR)  headsets and virtual reality (VR) experience rooms in the commercial sector, including vehicle showrooms, real estate, and retail stores, offers novel growth potential for the virtual reality (VR) market growth. Additionally, the swelling adoption of mobile devices and other handheld devices is anticipated to boost the usage of virtual reality (VR)  technologies in the commercial sector. Therefore, the commercial segment in the virtual reality (VR) market is expected to grow substantially during the forecast period.

Virtual Reality (VR) Market Regional Analysis:

North America is one of the prominent regions in the virtual reality (VR) market. It has also been an innovator in adopting innovations, which offers North America an advantage over other regions. Additionally, the region has the highest number of startups focusing on bringing innovative virtual reality (VR) technologies to numerous industries. For instance, according to Tracxn Technologies, there are around 951 Virtual Reality (VR) startups in the US. A few of them include Dreamscape, Orbbec, Sandbox VR, and JauntVR.

Asia Pacific accounted for the principal revenue share in 2022. The regional virtual reality (VR) market growth can be attributed to countries, such as China, that are foremost suppliers and producers of VR-related hardware. Furthermore, the region is household to a large number of factories and industries that are using virtual reality (VR)  in several processes owing to the growing trend of automation. Additionally, the increasing penetration of handheld devices with virtual reality (VR) support in the Asia Pacific region is anticipated to drive the region’s growth.

Virtual Reality (VR) Market Key Player Analysis:

The Virtual Reality (VR) market landscape consists of players such as Alphabet Inc., Barco NV, CyberGlove Systems, Inc., Meta Platforms Inc., HTC Corporation, Microsoft Corporation, Samsung Electronics Co., Ltd., Sensics, Inc., Sixense Enterprises, Inc. (Penumbra, Inc.), and Ultraleap Ltd. are the top two players owing to the diversified product portfolio offered.

Virtual Reality (VR) Market Recent Developments: 

Companies in the Virtual Reality (VR) market highly adopt inorganic and organic strategies such as mergers and acquisitions. A few recent key Virtual Reality (VR) market developments are listed below: 

  • February 2023 - Meta Platforms Inc. acquired Within Unlimited, Inc. for its virtual reality (VR) expertise and virtual reality (VR) application called Supernatural.
  • January 2023 - HTC Corporation launched its novel virtual reality (VR) & augmented reality headset named Vive XR Elite. The new product is equipped with a high-resolution display for an immersive experience.
  • Mar 2022 - Liquid Avtar Technologies Inc. launched the payment card and loyalty program particularly shaped for the metaverse. The card is a physical card powered by OptimizeFT's Engage360, a digital banking solutions and payment card platform available in the US.
  • Mar 2022 - DPVR, a virtual reality (VR) device manufacturing and design company based in Shanghai, launched the DPVR 4G/5G for its VR headsets. The company said the novel module is designed to enable verticals such as healthcare, training, education, and conferences to integrate virtual reality (VR)  headsets in situations requiring remote working or mobile usage.
REGIONAL FRAMEWORK

Virtual Reality (VR) Market Report Analysis

Virtual Reality (VR) Market

  • CAGR (2023 - 2031)
    28.70%
  • Market Size 2023
    US$ 75.55 Billion
  • Market Size 2031
    US$ 568.65 Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Google, Inc.
  • HTC Corporation
  • Magic Leap
  • Marxent Labs
  • Microsoft Corporation
  • Oculus (Facebook Technologies, LLC)
  • SAMSUNG ELECTRONICS CO., LTD.
  • Sony Corporation
  • Vuzix Corporation

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Component
  • Hardware
  • Software
By By Device
  • Head-Mounted Display
By Gesture-Tracking Device
  • GTD
By Projectors & Display Wall
  • PDW
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Virtual Reality (VR) Market Report Scope

Report Attribute Details
Market size in 2023 US$ 75.55 Billion
Market Size by 2031 US$ 568.65 Billion
Global CAGR (2023 - 2031) 28.70%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Component
  • Hardware
  • Software
By By Device
  • Head-Mounted Display
By Gesture-Tracking Device
  • GTD
By Projectors & Display Wall
  • PDW
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Google, Inc.
  • HTC Corporation
  • Magic Leap
  • Marxent Labs
  • Microsoft Corporation
  • Oculus (Facebook Technologies, LLC)
  • SAMSUNG ELECTRONICS CO., LTD.
  • Sony Corporation
  • Vuzix Corporation
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Component, Device, Technology, Application, and Geography

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    The List of Companies

    1. Google, Inc.
    2. HTC Corporation
    3. Magic Leap
    4. Marxent Labs
    5. Microsoft Corporation
    6. Oculus (Facebook Technologies, LLC)
    7. SAMSUNG ELECTRONICS CO., LTD.
    8. Sony Corporation
    9. Vuzix Corporation
    10. WorldViz, Inc.

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