The global Virtual Reality market size was valued at US$ 15.81 billion in 2020 and is anticipated to grow at a CAGR of 18.03% during forecast period 2021 to 2030.
Virtual Reality (VR) is a digitally created experience where a three-dimensional environment is simulated with the real-world. The technology offers an immersive experience to the viewers with the help of VR devices, such as or glasses, gloves, and bodysuits. The technology has brought a transformation in the gaming and entertainment industries by allowing users to experience immersion in a highly virtual realm. In addition, the increasing usage of this technology in instructive training, such as for training mechanics, engineers, pilots, soldiers in defense, field workers, and technicians, in the oil & gas and manufacturing sectors is driving the market growth.
The Head-Mounted Display (HMD) device segment accounted for the largest revenue share of over 60.0% in 2020 and is anticipated to maintain its dominance over the forecast period. The increasing importance of VR HMDs in enterprise and consumer applications is driving the segment growth. The different variety and flexibility in HMDs, consisting of tethered, hybrid, and self-contained HMDs, is further propelling the segment growth. The major applications of HMDs involve offering training in various industrial verticals, such as aerospace, military, engineering, medical, and research, and demonstrating a broad spectrum of use cases through interactive virtual images. Companies are continually innovating in this space to provide users with a better immersive experience.
For instance, in March 2019, Oculus VR launched its next-generation Rift S VR headset that incorporates an inside-out tracking and offers a screen with higher resolution as compared to its precursor. The Gesture-Tracking Device (GTD) segment is anticipated to witness the fastest growth rate of over 20.0% from 2021 to 2028. This is attributed to a positive shift in demand as visual gesture recognition is an emerging and growing technology that enables more immersive and intuitive interaction between humans and computers. The GTD VR hardware includes processors, sensors, VR projectors, multiple projection systems, and large screen monitors. Furthermore, several companies are working on enhancing the quality of sensors and processors used in VR devices.
The semi & fully immersive segment accounted for the largest revenue share of over 80.0% in 2020 and is anticipated to register the highest CAGR as well from 2021 to 2028. This is attributed to the continuous rise in demand for VR HMDs. The semi & fully immersive technology moderately or completely recreates real-world environments’ design into a digital platform and requires high-resolution displays, hard simulators, and high processing PCs to experience the immersion technology.
The technology provides the prospect of practicing motor and cognitive activities, which cannot be experienced within the educational or clinical environment. The semi & fully immersive technology is widely accepted across industry verticals, such as aviation, construction, entertainment, automotive, and education. For instance, Boeing, a-U.S. based aerospace company, deploys hard flight simulators for the training and reevaluation of piloting skills.
The non-immersive technology offers the viewers a digital or computer-generated environment without any immersive experience into the virtual world. The non-immersive technology is believed to be more efficient in terms of the network management system and is highly accessible. However, it is limited to very few applications, such as for designing, gaming, and medical assistance in healthcare, due to its 2D technology. Non-immersive systems need computer and video game consoles, display, and input devices, such as a mouse, controllers, and keyboards, to function.
The hardware component segment accounted for the largest revenue share of over 68% in 2020 and is expected to lead the market even during the forecast period. This growth is attributed to the rapid penetration of smartphones, tablets, and other digitally advanced electronic devices. The hardware segment includes output devices, input devices, and consoles. The increasing usage of VR headsets in amusement and theme parks, commercial applications, and other places is expected to provide new growth opportunities to the OEMs.
Moreover, the advancements in lightweight wearable technology are anticipated to create elevated growth prospects for the VR head-mounted display market. The software component segment is anticipated to register the highest CAGR from 2021 to 2028, which may be attributed to the role of software in analyzing incoming data, generating proper feedback, and managing I/O devices. The VR technology is beneficial for product prototyping or training with the help of its immersive 3D technology. The segment can be categorized into software types, such as simulation, training, virtual tool, game development, application, a learning experience platform, gamification, and segment reality.
The commercial application segment dominated the global virtual reality market with a share of over 53% in 2020 and is anticipated to maintain its lead for the next seven years. The growing adoption of VR headsets in the commercial sector, such as retail stores, car showrooms, and real estate, is providing new growth opportunities to VR companies. The rapid penetration of smartphones has resulted in the vast application of VR technology in the commercial segment. Many companies are incorporating VR technology for introducing their new products to reach the masses. For instance, in April 2020, AUDI AG, a luxury automobile manufacturer, declared that it will unveil the Audi e-Tron Sportback using the VR event, Virtual Market 4, as a digital platform dedicated to its customers.
The healthcare segment is expected to witness the fastest growth rate from 2021 to 2028, which is attributed to the wide spectrum of opportunities for VR in the healthcare sector, such as in medical learning and training, medical marketing, and disease awareness. Companies, such as Ossi VR and ImmersiveTouch, offer VR solutions to train surgeons and medical students. There is an on-going demand for emergency training, virtual surgeries, and VR anatomy applications to help educate medical professionals with more precision. The consumer segment is estimated to have a significant growth due to the increasing demand for VR technology in the gaming and entertainment industry. The need for effective enterprise training and better communication and collaboration tools across organizations is driving the growth of the enterprise segment.
Asia Pacific accounted for the largest revenue share of over 40.0% in 2020 due to increasing developments in VR technology. Within the region, China captured the largest market share as the country is the major distributor for HMDs. The technological developments in Southeast Asian nations are further propelling the growth of the market. In 2019, Japan launched 5G commercial services, which led to the strategic ingenuities taken by telecom businesses to offer VR/Augmented Reality (AR) viewing platforms, exploiting 5G connectivity. The promising initiatives by administrations, such as investments and funds to benefit VR firms, are also encouraging the adoption of VR technology in the region.
The U.S. led the North America regional market in 2020 as it represents the most attractive and largest technology market with extensive research activities in the field of VR. The region witnesses high acceptance for the technology and is a hub for key companies, such as Microsoft Corp., Apple, Inc., Google LLC, and Magic Leap. The U.S. government is also encouraging market growth by deploying virtual training sessions on public health veterinary. South America is anticipated to witness steady growth due to rapid internet penetration and developments in immersive technology.
Europe is projected to be the fastest-growing regional market from 2021 to 2028. This is attributed to the significant adoption of VR technology in various application areas across different industrial verticals, primarily in the automotive and gaming industries. Europe has a wider gamer base that fuels the adoption of innovative VR headsets in the region. The region witnesses prominence due to the rapid development and launch of advanced VR hardware, targeted mainly at the gaming community in European countries. The Middle East and Africa region is likely to witness sluggish growth, owing to the slow deployment of VR technology.
CyberGlove Systems, Inc.
Facebook Technologies, LLC
Samsung Electronics Co., Ltd.
Sixense Enterprises, Inc.
Head-Mounted Display (HMD)
Gesture-Tracking Device (GTD)
Projectors & Display Wall (PDW)
Semi & Fully Immersive
Aerospace & Defense
Middle East & Africa (MEA)
The Virtual Reality market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Virtual Reality market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Virtual Reality market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Virtual Reality market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Virtual Reality market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Virtual Reality capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Virtual Reality by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Virtual Reality market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Virtual Reality market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Virtual Reality market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Virtual Reality industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Virtual Reality market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Virtual Reality market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Virtual Reality market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Virtual Reality market. These factors have benefited the growth of the global market for Virtual Reality. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Virtual Reality. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Virtual Reality are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
To strategically profile the key players and comprehensively analyze their growth strategies.
3D Display Market (By Product: Volumetric, Stereoscopic, Head Mounted Display (HMD); By Technology: DLP, PDP, OLED, LED; By Application: TV, Smartphones, Monitor, Mobile Computing Devices, Projectors, Head Mounted Display (HMD)) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030Read more...
Solid State Drive Market (By Type: External, Internal; By Storage: Under 120 GB, 120GB-320GB, 320GB-500GB, 500GB-1TB, 1TB-2TB, Above 2TB; By End-Use: Enterprise, Client) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030Read more...
Silicon Wafer Reclaim Market (By Product: 150mm, 200mm, 300mm; By Application: Solar Panels, Integrated Circuits) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030Read more...
Wireless Infrastructure Market (By Technology: Macrocell Radio Access Networks (RAN), Small Cells, Remote Radio Heads (RRH), Distributed Antenna Systems (DAS), Cloud RAN, Carrier Wi-Fi, Mobile Core, Backhaul) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030Read more...
Smart Electricity Meters Market (By Phase: Single-phase, Three-phase; By End-use: Residential, Commercial, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2030Read more...