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

Publication Month : Apr 2024

  • Report Code : TIPTE100000351
  • Category : Electronics and Semiconductor
  • Status : Upcoming
  • No. of Pages : 150
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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 Regional Analysis:

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.

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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.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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