Virtual Reality Market: Current Analysis and Forecast (2023-2030)

Report Description

Virtual Reality Market Size and Forecast (2023-2030)

The Virtual Reality market was valued at USD 33.49 Billion and is expected to grow at a strong CAGR of around 23.85% during the forecast period (2023-2030) owing to growing internet penetration.

Virtual Reality Market Analysis

Virtual Reality (VR) is defined as a simulated experience that uses pose tracking and 3D near-eye displays to provide the user with an immersive feel of a virtual world. Virtual reality has applications in entertainment (particularly video games), education (such as medical or military training), and business (such as virtual meetings). Other types of VR-style technology include augmented reality and mixed reality, which are sometimes referred to as extended reality or XR, though definitions are changing due to the industry’s infancy. For instance, in 2022 March, Unity Software, partnered with Insomanic Events, a live music creator, to grow into the virtual environment from the physical world. Further, the organizations focus on offering live entertainment to the next generation’s future audience. Thus, the growing focus and investment of key stakeholders in the research and development of technologically advanced AR/VR is further expected to support market growth.

Samsung Electronics Co Ltd, Sony Corporation, Microsoft Corp, Qualcomm Incorporated, Vuzix Corporation, HTC Corporation, Eon Reality Inc, NVIDIA Corp, Alphabet Inc, Meta Platforms Inc. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Virtual Reality Market Trends

“Amongst end-user type, Enterprises Virtual Reality category to witness higher CAGR during the forecast period”

Based on end-user type, the market is segmented into enterprises virtual reality and consumer virtual reality. Enterprises virtual reality category to witness higher CAGR during the forecast period via minimizing distractions and creating a focused work environment, VR can boost productivity during remote work sessions. Immersive VR workspaces help employees stay engaged and focused on their tasks, leading to improved efficiency and output. Industries such as healthcare, education, real estate, automotive, manufacturing, and retail leverage VR for training simulations, virtual meetings, product design, marketing, and customer engagement.

“Amongst product type, the Software to hold a significant share in the market in 2022”

On the basis of product type, the market is categorized into software and hardware. Among these, the VR software market to hold a significant share in the market in 2022. The software has been witnessing higher adoption from the enterprise sector as increasingly adopting VR technology for training, collaboration, and product development purposes. From virtual meetings and remote collaboration tools to architectural visualization and industrial simulations, VR is reshaping the way businesses operate. For Instance: Alibaba introduced VR for virtual showrooms and training simulations for employees, demonstrating the potential for VR to enhance productivity and efficiency in the workplace.

“Amongst Application, the Surgery & Treatments to hold a significant share in the market in 2022”

Based on application, the virtual reality market has been classified into gaming, surgery & treatments, e-learning and others. The surgery & treatments category is to witness higher adoption of VR during the forecast period. This is mainly due to HDMR Headsets which are revolutionizing medical training by providing immersive simulations. Surgeons can practice complex procedures, and medical students can experience realistic scenarios, enhancing their skills in a risk-free environment. For instance, MindCotine’s VR platform helps individuals quit smoking by immersing them in personalized therapy sessions, illustrating the potential of VR in promoting health and wellness.

“APAC to hold a significant share in the market”

APAC is expected to hold a significant share of the global virtual reality market. This is mainly attributes due to rising demand from the gaming, entertainment, media, aerospace and defense, retail, and manufacturing industries. Businesses in this region have invested in AR and VR in addition to simulation. In addition, virtual reality is very useful in activities, such as gaming, nature exploration, hiking, and other outdoor exploration. Thus, growing VR users in the region, particularly the China will favor proliferation of VR market in the Asian markets. Also, the increasing adoption of VR products. Moreover, it is expected that the market will continue to grow at a steady rate during the forecast period owing to the high-income levels of the consumers in the region coupled growing awareness of the significance of technology for a balanced and healthy existence.

Virtual Reality Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global virtual reality market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Virtual Reality Market Analysis (2023-2030)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global virtual reality market were the three major steps undertaken to create and analyze the adoption of virtual reality in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global virtual reality market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the virtual reality market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the virtual reality market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as end-user type, product type, and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the virtual reality market. Further, we conducted factor analysis using dependent and independent variables such as growing prevalence of technology. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the virtual reality market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global virtual reality market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the virtual reality market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global virtual reality market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global virtual reality market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of end-user type, product type, and application in the global virtual reality market.

The main objective of the Global Virtual Reality Market Study

The current & future market trends of the global virtual reality market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the virtual reality market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of end-user type, product type, and application
• Define and analysis of the regulatory framework for the virtual reality market industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the virtual reality market for the major region
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of virtual reality market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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