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Virtual Reality Market size was over USD 24.51 billion in 2023 and is projected to exceed USD 570.88 billion by 2036, growing at over 27.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of virtual reality is assessed at USD 29.88 billion.
The growth of the market can be attributed to the growing usage of head mounted devices in gaming & entertainment industry, increasing availability of affordable VR devices and rising investments by technology vendors for making virtual reality applications. Furthermore, surge in demand for virtual training across a plethora of industries, such as education, automotive, healthcare and aerospace, is also expected to drive market growth in the upcoming years. In addition to these, the rise in penetration of smart phones and widespread installation of 5G connectivity are projected to offer potential growth opportunities to the market in the near future. The total number of smartphone users in the world grew up to 3.5 billion by the end of 2020. China has the largest smartphone user base in the world, accounting to more than 910 million users.
Growth Drivers
Increasing Use of HMDs in Entertainment & Gaming Sector
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
27.4% |
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Base Year Market Size (2023) |
USD 24.51 billion |
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Forecast Year Market Size (2036) |
USD 570.88 billion |
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Regional Scope |
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The market is segmented by device into head mounted display (HMD), gesture tracking device (GTD) and projectors & display wall (PDW), out of which, the HMD segment is anticipated to hold the largest share in the virtual reality market on account of the increasing usage of VR in enterprise and consumer applications, and growing adoption of innovative head mounted devices globally. It is calculated that the sales of the AR/VR headsets will reach approximately 19 million by the end of 2022. additionally, on the basis of application, the healthcare segment is evaluated to observe the highest growth during the forecast period owing to the rising use of VR for drug discovery and design, and emerging role of virtual reality in microsurgery and nano-surgery. Moreover, based on component, the hardware segment is assessed to account for the largest market share in the coming years, which can be credited to the spiraling usage of VR headsets in theme parks and commercial applications.
Our in-depth analysis of the global market includes the following segments:
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By Device |
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By Application |
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Component |
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On the basis of geographical analysis, the virtual reality market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the Asia Pacific is expected to dominate majority revenue share by 2036, on the back of hike in launch of affordable VR devices by local companies in countries, namely China and India. Along with this, as China is among the chief distributors of head mounted devices worldwide, it is anticipated to gain the largest market share in APAC in the future. Moreover, the market in North America is expected to occupy the largest market share during the forecast period ascribing to the strong presence of startups focused on developing sophisticated VR technologies and high acceptance of technological innovations by the people of the region. It is evaluated that almost 6o million people in the United States will use virtual reality at least once every month in 2021. This accounts for 18% of the country’s total population.
· Sony Corporation, February 2021: The company is working on next generation virtual reality headset for PlayStation 5 that will include enhanced resolution and field of view.
· Samsung Technologies, January 2021: Samsung’s bug-eye VR headset was reported to resurface again, as a successor of the initial model of Samsung Odyssey+.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
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