Key Market Overview:
Virtual Reality (VR) Market is estimated to reach over USD 134.32 Billion by 2030 from a value of USD 15.20 Billion in 2022, growing at a CAGR of 31.31% from 2023 to 2030.
Virtual reality (VR) is a simulated virtual environment created by employing advance technologies including motion tracking, 3D modeling & rendering, audio & haptic feedback, and networking/interactivity. VR technologies strive to generate immersive simulated experience which is substantially close to real world. Today VR has multiple crucial applications across wide range of industries. For instance, VR headsets are extensively being used in gaming industry to provide gamers an immersive experience. Virtual Reality (VR) technologies are also being utilized within the healthcare sector to offer innovative solutions for multiple medical industry related challenges such as training students about complex surgical procedures without risking a patient’s life.
One of the most recent achievements in VR technology is the integration of the technology with diagnostic technologies including MRI & CT scans to provide simple pain free diagnostics. For instance, according to an article by NASDAQ In December 2019, a study conducted at St George Hospital in the UK demonstrated the impact of VR headsets on patients undergoing wide-awake surgery. The results were remarkable with 100% of patients reporting an improvement in their overall hospital experience and 94% stating that the VR headset helped in feeling more relaxed. Furthermore, 80% of patients reported reduced pain levels and 73% reported decreased anxiety while using the headset. The statistics are substantial and highlight the potential of VR technology in improving patient outcomes and experiences in healthcare settings. Thus, healthcare industry is estimated to be one of the most crucial driver for the demand of virtual reality technologies.
Market Dynamics:
Drivers:
- Growing adoption of VR technologies in gaming and entertainment industry is driving the market growth.
According to a survey by Grafa.io in 2021, the study reported that 70% of the gamers are willing to purchase VR based game. This shows the influence of gaming industry on the VR market. Major game developers including Rockstar Games and EA among others have developed VR games with the growing demand interactive games. For instance, in October 2022 Meta launched Meta Quest Pro VR headset that provides a range of advanced features, including high-resolution sensors that enable immersive mixed reality experiences, LCD displays for enhanced visual clarity, as well as eye tracking and natural facial expression recognition technology.
Restraints:-
High production cost is the main challenge faced by the VR industry. The consumer segment is the largest patron for VR equipment. The cosnumer segment is generally price sensitive and high cost of VR devices hinder the market growth. Another restraint hindering the market growth is VR technologies’ association with “cybersickness” which is a term used for various health implications caused due to prolonged use of VR devices. A considerable number of users have reported to experience nausea, eye strain, neck pain, and severe headache after using VR headsets. The reason for cybersickness is due mismatch between what the user sees in the virtual environment and what user’s actual body experiences in the physical world.
Opportunities: –
The integration of VR technologies in education sector will be a lucrative opportunity in forthcoming years. In recent time E-education has gained significant popularity with several multi-billion dollar Edtech startups budding in the industry. Currently a majority of institutes employ traditional technologies like online streaming or recorded lectures that are played on laptops or smartphones. However, now companies are looking for better alternatives to simplify the learning process therefore, virtual reality technologies can help with better visualization of complex topics further making the understanding simpler.
Further, VR technologies are also used alongside traditional schooling. For instance, according to a US based company named Prisms VR, in USA alone VR learning is being used in 110 school districts in 26 states, and more than 100,000 students are using it. Further, in 2022 the company raised USD 12.5 million to fund its expansion into newer educational institutes.
Virtual Reality (VR) Market:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 134.32 |
| CAGR (2023-2030) | 31.31% |
| By Offering | Hardware and Software |
| By Technology | Non-Immersive, Semi Immersive, Fully Immersive |
| By Device type | Head Mounted Display, Gesture Tracking Devices, Projectors |
| By Application | Consumer, Commercial, Manufacturing, Healthcare, Defense, Automotive, Others |
| By Geography | North America, Europe, Asia Pacific
Latin America, Middle East, and Africa |
| Key Players | Oculus (Facebook), HTC, Sony, Valve Corporation, Pimax, HP, Acer, Lenovo, Samsung, Google |
Market Segmentation:
By Offerings: –
The offering segment is divided into hardware and software segment. The largest market share in terms of revenue is captured by software segment. The segment is further categories into Software Development Kits (SDK), VR Content Creation and Cloud Based Services. The SDK software are crucial for development and testing of virtual systems. Moreover, software is crucial for efficient functioning of all types of VR technologies as software performs crucial functions including graphic rendering. VR devices rely on high-quality graphics to create a virtual environment; hence software is needed to render the graphics in real-time.
On the other hand, the hardware segment consists of sensors, displays, and position trackers. Large influx of investments by major players are driving this segment. For instance, in February 2023 Virtual reality (VR) technology company Bigscreen unveiled ‘Bigscreen Beyond’, a compact VR device. Weighing only 127 grams moreover, the device is 6 times lighter than previous versions.
By Technology: –
By technology segment is divided into non-immersive, semi-immersive, and fully immersive technology. The semi-immersive technology type has the largest market share in this segment. The semi-immersive technology is less expensive as compared to fully immersive and has better functionalities and immersion feel then non immersive type. Semi immersive is most commonly used in VR simulators which further helps in driving the market growth. For instance, CM Labs has developed various construction simulations to train construction workers.
The fully immersive type is the fastest growing segment and is expensive than other two types. However, the fully immersive type of technology has unmatched capacities to generate most realistic virtual experience. Further, multiple theme parks are integrating fully immersive VR technologies to create extreme thrilling rides. For instance, SeaWorld Theme Park in Orlando, offers a ride called Kraken Unleashed which is a real roller coaster combined with VR headset and earphones.
By Device Type: –
On the basis of device the segment is divided into head mounted display, gesture tracking devices and projectors. The head mounted display devices had the largest market share. Head mounted displays are less expensive and portable making the devices popular in consumer segment especially for gaming and media consumption. Large businesses including Meta and Google primary target head mounted display devices as primary manufactured product. For instance, in September 2022 Pico Interactive launched Pico 4, which is a new standalone head mounted display VR headset. Further, the gesture tracking devices are estimated to showcase significant growth in the forecasted period. Gesture control in gaming is expected to be the major driver for this segment.
By Applications: –
This segment is divided into consumer, commercial, manufacturing, education, healthcare, defense, automotive and others. According to PWC report published in 2002, consumer segment accounted for 60 % of the total sales for VR device. In consumer segment the highest demand for VR devices is for gaming and entertainment purposes. For instance, in November 2022 PlayStation (Sony) announced the launch of PlayStation VR2 offering 4K HDR visuals, with 110-degree field view and advanced graphical rendering.
The healthcare segment is expected to showcase significant growth in the forecasted period. For, instance according to a report by Accenture,82% of healthcare professionals in 2018 agreed that virtual reality provides a convenient way of learning for both medical students and practicing healthcare professionals. Additionally, 62% of patients accepted that virtual reality healthcare services as a replacement for traditional care.
By Region: –
The regional segment is divided into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. In the regional segment North America region has the dominating market share. This region has large number presence of manufactures of VR devices including Meta (oculus), Google and Microsoft. Moreover, USA is the largest market for gaming which is a major consumer for VR technologies.
Moreover, Asia pacific region is expected to showcase significant growth over the forecasted period. Countries including China and Japan are among the biggest consumer of virtual reality devices. In China numerous theme parks, karaoke bars, gaming cafes, shopping malls, and experience centers offer VR sessions. Also, over thousands of internet cafes are already offering affordable VR sessions. The integration of VR technologies into medical trainings is expected to drive the demand for VR technology in countries including India, Hong Kong, and South Korea among others. For instance, in February 2023, Singapore General Hospital, one of the largest hospital in Singapore, announced shifting to the gamified VR nurse training model in order to enhance nurses’ training.
Virtual Reality (VR) Market Competitive Landscape:
The competitive landscape of the Virtual Reality (VR) industry comprises detailed profiling of key market players operating in this market. Major companies been analyzed. It was found that Key players are leading the market through their investments in R&D with product innovation. Furthermore, this report contains company overviews, production capacity, SWOT analysis, financial data, revenues, market potential, global presence, production sites, with product application. The major players in this market: –
- Oculus (Facebook)
- HTC
- PlayStation (Sony)
- Valve
- Pimax
- HP
- Acer
- Lenovo
- Samsung
Recent developments: –
- In November 2022. Sony has acquired Beyond Sports, a provider of real-time sports visualization solutions for virtual environments.
- In December 2022 BehaVR and OxfordVR announced a merger and secured USD13 million in Series B funding to create largest VR delivery platform.
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