According to a new report published by Grand View Research, the global virtual reality market size was valued at USD 21.83 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 15.0% by 2022. to 2030.
Virtual Reality Industry Overview
The global Virtual Reality market size was valued at USD 21.83 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Virtual Reality (VR) is a digitally produced experience that simulates a three-dimensional environment in the real world. The technology gives viewers an immersive experience using VR gadgets such as gloves, helmets or goggles and suits. Virtual reality has revolutionized the gaming and entertainment industries by allowing users to immerse themselves in a highly simulated environment. Also, the increasing use of this technology in educational training, for example for teaching engineers, mechanics, pilots, field workers, defense warriors and technicians in manufacturing sectors and oil and gas, is propelling the growth of the market.
Apart from educational and training purposes, virtual reality is being widely adopted for various other applications. For example, the technology allows engineers to experiment with designing and building a vehicle at the concept stage before starting on expensive prototypes in the automotive industry. Along with VR exposure therapy, the technology is also being used to treat people with mental health issues. Additionally, tourism businesses are using VR technology to allow potential customers or customers to take a virtual tour of landmarks, iconic destinations, restaurants, and hotels.
Gather more insights into the market drivers, restraints, and growth of the Global Virtual Reality Market
During the COVID-19 outbreak, several industries were temporarily shut down and lockdowns were imposed to stop the spread of the virus, which impacted business operations in all regions. However, the growing need for businesses to continue their business online has led to an increased demand for VR. Businesses have moved to virtual platforms to continue their ongoing business activities, such as attending meetings and formulating policies and strategies. Additionally, VR technology is evolving as a promising tool for virtual events. Event planners provide visitors with engaging and diverse experiences by hosting the event on a virtual platform and presenting it as a virtual reality experience. Accordingly, the rising popularity of virtual events is encouraging the growth of the market.
The growing use of VR applications in the architecture and planning industry is another factor that is likely to drive the growth of the market. The use of VR technology in architecture helps in decision making and visualization of the effects of suggested urban designs and architectural plans. It also enables early detection and correction of faults, thus saving time and money. Additionally, several real estate agencies have started using virtual reality to offer virtual tours of properties, increasing the likelihood of a sale. For example, in February 2021, Zillow, an online real estate market company, launched the Zillow 3D Home Tour, an interactive medium for home buyers to remotely check out homes using VR technology. The company deploys AIwhich removes barriers between the media listing, such as walkthroughs and photos, and the data listing, such as room dimensions and square footage.
The entertainment and sports industries have reaped significant benefits from VR technology. The virtual reality market is expected to be widely adopted in location-based entertainment, games, theaters and music. For example, in 2018, Europa-Park, a German amusement park, installed a VR roller coaster called Eurostat Coastality, which allows visitors to experience a world based on the movie Valerian and the City of a Thousand Planets. In 2018, China established the VR Star theme park, which has more than 40 VR rides. The growing popularity of VR entertainment is expected to contribute to the growth of the market.
Segmentation of the virtual reality market
Based on Device Insights, the market is segmented into Head Mounted Display (HMD), Gesture Tracker (GTD) and Projectors and Display Wall (PDW).
- The head-mounted display (HMD) device segment accounted for the largest revenue share of over 60.0% in 2021 and is expected to dominate the market from 2022 to 2030.
- The gesture tracking devices (GTD) segment is expected to register the fastest CAGR of 17.4% over the forecast period.
- The different types of GTD VR hardware include sensors, processors, VR projectors, large format displays, and several projection systems.
Based on Technology Insights, the market is segmented into semi and fully immersive and non-immersive.
- The semi and fully immersive segment accounted for the largest revenue share of over 80.0% in 2021. It is also estimated to register the highest CAGR during the forecast period.
- Non-immersive technology provides viewers with a computer-generated or digital environment rather than an immersive virtual world experience.
Based on Component Insights, the market is segmented into hardware and software.
- The hardware segment accounted for the largest revenue share of over 65.0% in 2021 and is expected to dominate the market during the forecast period. The rapid use of smart phonestablets and other technologically advanced electronic gadgets are contributing to the growth of the segment.
- The software segment is expected to register the highest CAGR of 17.0% during the forecast period. This can be attributed to the software’s ability to generate appropriate feedback, analyze incoming data, and manage input/output devices.
Based on Application Insights, the market is segmented into Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare, and Others.
- The commercial segment accounted for the largest revenue share of over 50.0% in 2021 and is expected to dominate the market during the forecast period.
- The healthcare segment is expected to register the highest CAGR of 19.3% during the forecast period, which can be attributed to the wide range of VR prospects in the healthcare industry, including awareness diseases, medical marketing and medical education and training.
- The consumer segment is expected to witness significant growth over the forecast period owing to the growing demand for VR technology in the gaming and entertainment industries.
Based on the virtual reality regional information, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
- Asia-Pacific accounted for the largest revenue share of over 40.0% in 2021, which can be attributed to increasing improvements in VR technology.
- The growth of the market in North America can be attributed to the increasing market revenue in the United States. The United States has a large presence of tech-friendly companies, such as Apple, Inc.; Microsoft; magic jump; and Google LLC; and conducts extensive research activities in the field of virtual reality.
- The market in South America is expected to grow steadily owing to increased internet adoption and advancements in immersive technology.
- Europe is estimated to emerge as the fastest growing regional market with a CAGR of 16.6% over the forecast period.
- The market in the Middle East and Africa is expected to grow slowly due to the slow adoption of VR technologies.
Market share overview:
- May 2020: Apple Inc. acquires NextVR Inc. to expand its virtual reality capabilities for sports and entertainment.
- June 2020: Meta acquired Ready at Dawn, a VR-based video game developer, and entered into an agreement to develop games for Oculus Studios that incorporate VR-based content.
Profile of key companies:
Major players invest heavily in R&D to include advanced technologies with a variety of features in their products. Microsoft’s Xbox Series X and Series S and Sony’s PlayStation 5 are likely to provide new opportunities for VR companies to strengthen their position in consumer VR.
Some prominent players in the global virtual reality market include
- CyberGlove Systems, Inc.
- HTC Company
- Sensics, Inc.
- Sixense Enterprises, Inc. (Penumbra, Inc.)
- Ultraleap Limited
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About Grand View Research
Grand View Research is a full-time market research and consulting firm registered in San Francisco, California. The company offers comprehensive, customized and syndicated market reports based on in-depth data analysis. It also offers consultancy services to business communities and academic institutions and helps them understand the global and business scenario to a great extent. The company operates in a multitude of areas such as chemicals, materials, food and beverage, consumer goods, healthcare and information technology to offer consultancy services.
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