Global Virtual Reality Market Size By Component, By Technology, By Device Type (Head-Mounted Displays, Gesture Control Devices), By Application, By Geographic Scope And Forecast

Virtual Reality Market Size And Forecast

Virtual Reality Market size was valued at USD 195.3 Billion in 2022 and is projected to reach USD 10255.3 Billion by 2030, growing at a CAGR of 55.28% from 2023 to 2030. The growing demand for HMD in the gaming and entertainment industry is a key element that has boosted the growth of the Virtual Reality Market. The widespread availability of affordable VR devices is another element pushing VR device adoption. Various local companies' launches of VR devices in countries like China and India have helped in making such devices more inexpensive and promoting their widespread adoption. The Global Virtual Reality Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Virtual Reality Market Definition

Virtual reality, sometimes called Virtual Environments (VE), can be defined as the computer-generated simulation of a three-dimensional image or environment that can be interacted with in a way that is seemingly real or physical. It is a computer-generated world that is presented to the viewer in such a way that it seems and feels realistic to the viewer. In a typical VR format, a user wearing headgear with a stereoscopic screen views animated visuals of a simulated world.

It is the means by which we may create our own universe, our own personalized reality. People may use virtual reality to experience the most intimidating and grueling experiences while remaining safe and learning. By simulating as many senses as possible including vision, hearing, touch, and even smell, the computer is transformed into a gatekeeper to this artificial world. Gesture recognition or handheld controllers provide hand and body tracking, and haptic (or touch-sensitive) feedback may be incorporated.

Room-based systems may be utilized with numerous users to give a 3D experience while moving across huge spaces. This kind of simulation is carried out through special electronic equipment such as headsets or glasses, gloves, and bodysuits that are fitted with sensors and helmets with screens inside. With the increasing advancements in Device Type, the implementation of virtual reality in various applications such as medical, industrial, aerospace and defense, and commercial applications are more is increasing.

Global Virtual Reality Market Overview

Increasing application of Head-mounted Displays (HMDs) in the gaming and entertainment sector is a key element that is driving the growth of the Virtual Reality Market. With the introduction of VR and 3D technologies, the gaming industry has undergone a technological transformation. HMDs have helped in achieving a fully immersive experience for consumers, elevating the gaming experience to a whole great level. In the video game industry, HMDs have a high penetration rate. HMDs are preferred by video game players to enhance experience and entertainment.

HMDs project digital pictures, enabling a 3D view, which improves the user experience. Therefore, the burgeoning gaming industry will fuel the demand for HMDs and, in turn, VR. Furthermore, the growing use of this Device Type in instructional training, such as for instructing mechanics, engineers, pilots, defense soldiers, field workers, and technicians in the oil and gas and industrial sectors, is propelling the market growth. Apart from training and educational purposes, the Device Type is widely used in a variety of sectors for a number of other purposes.

For instance, in the automobile sector, it lets engineers experiment with a vehicle's design and structure at the concept stage before embarking on costly prototypes. Furthermore, by using virtual reality Device Type, the tourist sector allows potential consumers to take a virtual tour of monuments, famous sites, restaurants, and hotels. Thus, the market's growth is being fuelled by the increasing use of virtual reality in a variety of sectors for a variety of applications.

The biggest challenges in virtual reality are improving tracking systems, creating more natural ways for users to engage in a virtual environment, and reducing the time it takes to create virtual places. When it comes to virtual worlds, establishing a realistic virtual environment can take a long time; the more realistic the environment, the longer it takes to develop. A team of programmers might spend more than a year properly replicating a realistic area in a virtual space. Moreover, factors such as the large initial investment required, as well as the need for advanced infrastructure for the implementation of virtual reality Device Type are restraining the growth of the Virtual Reality Market.

Global Virtual Reality Market: Segmentation Analysis

The Global Virtual Reality Market is Segmented on the basis of Component, Technology, Device Type, Application, And Geography.

Virtual Reality Market, By Component

• Hardware
• Sensors
• Semiconductor Components
• Displays
• Software
• Smart Meter
• Software Development Kits
• Cloud-Based Solutions

Based on Component, the market is bifurcated into Hardware and Software. During the anticipated period, the hardware category will hold the biggest market share. The quick uptake of smartphones, tablets, and other technologically advanced electronic devices is credited with this growth. The hardware sector includes consoles, input and output devices, and other related items. As the use of VR headsets increases in entertainment and theme parks, commercial applications, and other areas, OEMs may anticipate new growth opportunities.

Virtual Reality Market, By Technology

• Non-Immersive Technology
• Semi-Immersive & Fully Immersive Technologies

Based on Technology, the market is bifurcated into Non-Immersive Technology and Semi-Immersive & Fully Immersive Technologies. The semi & fully immersive segment accounted for the largest revenue share 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 rising application of semi & fully immersive technology in aviation, construction, entertainment, automotive, and education sectors is supporting the growth of the segment.

Virtual Reality Market, By Device Type

• Head-Mounted Displays (HMDs)
• Gesture Control Devices

Based on Device Type, the market is bifurcated into Head-Mounted Displays (HMDs) and Gesture Control Devices. The Head-Mounted display Device Type holds the largest market share during the forecast period. the HMD industry is anticipated to grow significantly over the next 5-6 years owing to the rising demand for virtual reality video gaming. Many consumers and technological giants will adopt HMDs and virtual reality, which will help the industry to grow.

Virtual Reality Market, By Application

• Consumer
• Commercial
• Aerospace & Defense
• Medical
• Industrial
• Others

Based on Application, the market is bifurcated into Consumer, Commercial, Aerospace & Defense, Medical, Industrial, and Others. In 2020, the worldwide virtual reality industry was dominated by commercial applications, and this trend is expected to continue for the following seven years. The increasing use of virtual reality headsets in the commercial sector, such as retail stores, auto showrooms, and real estate, is presenting VR firms with new growth opportunities.

Virtual Reality Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World
• On the basis of Geography, the Global Virtual Reality Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific region holds the largest share of the Virtual Reality Market. China, being the region's largest distributor of HMDs, took the lead with the greatest market share. The market's expansion is being aided by technological advancements in Southeast Asian countries. Furthermore, potential government efforts, such as investments and funds to benefit VR firms, are promoting the region's adoption of VR technology.

Key Players

• The "Global Virtual Reality Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are
• Microsoft Corporation, Vuzix Corporation, Cyberglove Systems Inc., Sensics, Inc., Leap Motion, Inc., Oculus VR, LLC, Sony Corporation, Samsung Electronics Co., Ltd., HTC Corporation., Google Inc.
• The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In March 2020, Microsoft teamed up with HP and Valve to provide a new VR headset to the market that provides customers with a more realistic and comfortable VR experience.
• In December 2019, Oculus introduced the hand-tracking feature in its Oculus Quest standalone virtual reality headset. The feature will come as part of the Facebook's latest Quest v12 software update.