Virtual Reality (VR) Market
The global VR market was valued at USD 3.13 billion in 2017 and is expected to reach USD 49.7 billion by 2023, at a CAGR of 58.54% over the forecast period (2018-2023). Virtual reality blurs the line between digital and physical worlds, thereby generating a sense of being present in the virtual environment for the consumer. Several multinational corporations such as Sony and HTC are venturing into this market space. The launch of commercial virtual reality headsets is expected to accelerate the growth of the market. Technological advancements in VR are expected to generate a plethora of VR solutions with diverse capabilities, which allow consumers to experience utmost immersion. Making the VR experience more real serves as a key driver towards market adoption and penetration. Most of the available solutions in the market are limited to head tracking, paving the way for great opportunities in the development of newer technologies that increase the user’s sense of presence and immersion.
Increase in Demand for Immersive Virtual Reality is Driving VR Market Growth
The potential applications of immersive virtual reality systems are numerous. They can be used for information visualization in industrial sectors to create augmented reality museums for educational purposes. In the defense sector, these systems can be used to create simulated environments to train pilots, soldiers, and crisis response teams for situations that are too dangerous to use live equipment. Furthermore, increased usage of smartphones and tablets is expected to drive the growth of immersive VR, especially for mobile HMDs. Many organizations that offer mobile VR headsets use third-party mobile devices as their screen. This reduces the overall expenditure, and opens avenues for app developers of smartphones. As the costs associated with the technology reduce, its application will witness exponential growth across many industry verticals.
Head-mounted Displays Hold the Largest Market Share in VR Industry
HTC Vive, Oculus Rift, PlayStation VR, and Immersion VR are some HMDs that are expected to gain significant customer acceptability over the next two years. There are several technologies incorporated in an HMD device to create an immersive experience, either entirely as a virtual reality interface, or as a personal media device. These technologies include display, optics, eye, and head tracking, among others. Furthermore, application of HMDs in the avionics sector is driving their market growth, as they offer digital prototypes with a real-world environment to authenticate the design assumptions and identify potential concerns. HMDs provide vital information for pilots, which include wider field of view, situation awareness, and improving their ability to land in difficult conditions such as a crosswind, while keeping their eyes out of the aircraft.
North America holds the Largest Share in Virtual Reality Market
Technological research & development and commercialization are the major factors driving growth in the VR market of the region. The penetration of smartphones in the region due to the advancement of electronic devices facilitated the region to dominate the global arena. The United States dominates the North American market and this trend will continue over the forecast period. Increasing usage of VR applications in the healthcare sector in this region is fueling the growth.
Key Developments in the Virtual Reality Market
- February 2018 – HP announced revamp of workstation and showcased HP windows mixed reality headset – Professional Edition that delivers an immersive experience.
- June 2017 - Microsoft acquired Cloudyn, a company that helps enterprises and managed service providers optimize their investments in cloud services. This acquisition is expected to accelerate digital transformation for customers and partners with Azure.
Virtual Reality Market Major Players:
- Apple Inc.
- Atheer, Inc.
- Facebook Inc.
- Google Inc.
- Gravity Jack
- Hewlett-Packard Development Company L.P
- Layar (Blippar Group)
- Marxent Lab LLC
- Meta Inc.
- Microsoft Corporation
- Nintendo Co., Ltd
- Qualcomm Technologies, Inc.
- Samsung Electronics Co. Ltd
- Sony Corporation
- Total Immersion, Inc.
- Zappar Ltd.
Reasons to Purchase Virtual Reality Industry Report
- Current and future virtual reality market analysis in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 month analyst support, along with the Market Estimate sheet (in Excel)
Customization of Report
- This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs.
1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Virtual Reality Industry Insights
4.1 Virtual Reality Market Overview
4.2 Industry Attractiveness – Porter's Five Industry Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products or Services
4.2.5 Competitive Rivalry among Existing Competitors
4.3 Industry Value Chain Analysis
5. Virtual Reality Market Dynamics
5.1 Factors Driving the Virtual Reality (VR) Market
5.1.1 Increase in Demand for Immersive Virtual Reality
5.1.2 Decrease in Production Costs of Display Devices
5.2 Factors Challenging the Virtual Reality (VR) Market
5.2.1 Health Concerns Regarding Motion Sickness Caused by VR Systems
6. Technology Snapshot
7. Global Virtual Reality Market Segmentation
7.1 Virtual Reality (VR) Market By Product Type
7.1.1 Hand-Held Devices
7.1.2 Gesture-Controlled Devices
7.1.3 Head Mounted Displays (HMD)
7.2 Virtual Reality (VR) Market By VR Technology
7.3 Virtual Reality (VR) Market By Applications
7.3.1 Medical and Healthcare
7.3.4 Advertising & Marketing
7.3.5 Energy and Utilities
7.3.6 Entertainment and Gaming
7.3.7 Design and Engineering
7.4 Virtual Reality (VR) Market By Geography
7.4.1 North America
7.4.4 Middle East & Africa
7.4.5 Latin America
8. Virtual Reality (VR) Market Competitive Intelligence – Company Profiles
8.1 Apple Inc.
8.2 Atheer, Inc.
8.4 Facebook Inc.
8.5 Google Inc.
8.6 Gravity Jack
8.7 Hewlett-Packard Development Company. L.P
8.10 Layar (Blippar Group)
8.11 Marxent Lab LLC
8.12 Meta Inc.
8.13 Microsoft Corporation
8.14 Nintendo Co., Ltd
8.15 Qualcomm Technologies, Inc.
8.16 Samsung Electronics Co. Ltd
8.17 Sony Corporation
8.19 Total Immersion, Inc.
8.21 Zappar Ltd.
*List is Not Exhaustive
9. Virtual Reality (VR) Market Investment Analysis
10. Virtual Reality Industry Outlook