Virtual Reality Market Qualitative and Quantitative Analysis Report 2030

Virtual Reality Market Growth & Trends

The global virtual reality market size is expected to reach USD 87.0 billion by 2030, according to the latest report by Grand View Research, Inc. The market is expected to expand at a CAGR of 15.0% from 2022 to 2030. The rapid penetration of Head-Mounted Display (HMD) in various industries, particularly in entertainment and gaming, has led to significant market growth. Additionally, the advent of 5G technology has positively impacted the adoption of virtual technology.

Virtual Reality Market Segmentation

Grand View Research has segmented the global virtual reality market on the basis of device, technology, component, application, and region:

Based on the Device Insights, the market is segmented into Head-mounted Display (HMD), Gesture-tracking Device (GTD), Projectors & 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 growing importance of VR headsets in commercial and consumer applications is propelling their demand in the market. The segment growth is fueled by the diversity and flexibility of HMDs, such as hybrid, tethered, and self-contained HMDs. These devices are used to provide training in various industries, including military, aerospace, engineering, research, and medicine, and illustrate a wide range of use cases using interactive virtual pictures. In order to provide customers with a greater immersive experience, companies are constantly involved in technological developments in this field.
• The gesture-tracking device (GTD) segment is projected to register the fastest CAGR of 17.4% over the forecast period. This growth can be attributed to a significant transition in demand from standard gesture tracking to visual gesture tracking as visual gesture recognition is a novel and rapidly increasing technology that allows for more immersive and natural human-computer interaction. Different types of GTD VR hardware include sensors, processors, VR projectors, large-screen displays, and multiple projection systems. Moreover, several firms are attempting to improve the quality of processors and sensors used in VR systems to provide a more immersive experience to viewers.

Based on the Technology Insights, the market is segmented into Semi & 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 over the forecast period. The segment growth can be attributed to the continuous surge in demand for VR HMDs. Semi and fully immersive technology replicate the architecture of real-world surroundings in a digital platform. It requires the use of complex simulators, high-resolution displays, and high-processing PCs. A VR technology allows students to practice cognitive and motor activities that they would not be able to do in an educational or therapeutic setting. Industry verticals such as construction, aviation, entertainment, and automotive have all embraced semi and fully immersive technology.
• The non-immersive technology provides viewers with a computer-generated or digital environment rather than an immersive virtual world experience. This technology is thought to be more efficient in terms of network administration and is more widely available. Due to its limited 2D interaction, the technology is confined to few uses, such as gaming, designing, and medical assistance. Computer and video game consoles, input devices such as controllers, a mouse, a keyboard, and displays are required for non-immersive systems to function properly.

Based on the 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 anticipated to dominate the market over the forecast period. The rapid use of smartphones, tablets, and other technologically advanced electronic gadgets is contributing to the segment growth. The hardware segment includes input devices, output devices, and consoles. The rapid adoption of VR headsets in commercial applications, theme and amusement parks, and other places is anticipated to offer growth opportunities to Original Equipment Manufacturers (OEMs). Furthermore, developments in lightweight wearable technologies are expected to accelerate the demand for VR head-mounted displays.
• The software segment is expected to register the highest CAGR of 17.0% over the forecast period. This can be attributed to the ability of the software to generate proper feedback, analyze incoming data, and manage input/output devices. VR technology is widely deployed in product prototyping and training due to its immersive three-dimensional technology. The software segment can be further divided into training, simulation, virtual tools, applications, game development, gamification, learning experience platforms, and segment reality. Increasing investments from key players in the market for introducing advanced VR software solutions and hardware devices are positively impacting the market growth.

Based on the Application Insights, the market is segmented into Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare, Others.

• The commercial segment accounted for the largest revenue share of over 50.0% in 2021 and is anticipated to dominate the market over the forecast period. The increasing use of VR headsets in the commercial sector, including real estate, vehicle showrooms, and retail stores, provides new growth potential to VR companies. The rising adoption of smartphones has resulted in the widespread use of VR technologies in the commercial sector. Many businesses are using VR to introduce new items to the general public.
• The healthcare segment is expected to register the highest CAGR of 19.3% over the forecast period, which can be attributed to the broad spectrum of prospects for VR in the healthcare sector, including disease awareness, medical marketing, and medical learning & training. Companies such as ImmersiveTouch, Inc. and Osso VR, Inc. provide VR solutions to train medical students and surgeons. Moreover, virtual surgeries, emergency training, and VR anatomy applications are in high demand to enable medical professionals to learn more precisely. The consumer segment is expected to witness significant growth over the forecast period owing to the increasing demand for VR technology in the gaming and entertainment industries. The need for better communication and collaboration and enhanced organizational training tools across various companies is positively impacting the growth of the enterprise segment.

Virtual Reality Regional Outlook

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Key Companies Profile & Market Share Insights

The continued trend of technology giants bringing commercial products into the market has prompted start-ups to collaborate in order to integrate and absorb VR technologies. Key companies are pursuing mergers and acquisitions as well as collaborations with technology start-ups to gain a competitive advantage in the market.

Some of the prominent players operating in the global virtual reality market include,

• Barco
• CyberGlove Systems, Inc.
• Meta
• HTC Corporation
• Microsoft
• Samsung
• Sensics, Inc.
• Sixense Enterprises, Inc. (Penumbra, Inc.)
• Ultraleap Limited

Order a free sample PDF of the Virtual Reality Market Intelligence Study, published by Grand View Research.