Virtual Reality (VR) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Virtual Reality (VR) Hardware Market is segmented by HMDs (Tethered HMDs, Standalone HMDs, Screenless Viewer), End-user (Gaming, Media and Entertainment, Retail, Healthcare, Military and Defense, Real Estate, Education), and Geography.

Market Snapshot

Virtual Reality Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 48.7 %
Virtual Reality Market Major Players

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Virtual Reality (VR) market was valued at USD 17.25 billion in 2020 and is expected to reach USD 184.66 billion by 2026, at a CAGR of 48.7% over the forecast period 2021 - 2026. VR Technology has gained widespread recognition and adoption over the past few years. Recent technological advancements in this field have revealed new enterprises. Numerous players are emerging in this market with the hopes of navigating it toward mainstream adoption.

  • Virtual reality has often found its application compelling, with interactive video games or even movies and television series. Wherever it is too dangerous, expensive, or impractical to do in reality, virtual reality is seen as an ideal replacement. With the increasing demand for cloud gaming and innovative gaming consoles, the demand for immersed environment gaming is increasing rapidly.
  • One of the most well-known uses of VR headsets is in gaming applications. Companies, such as Oculus, HTC, and Sony, have created a range of products that consumers can use for a total immersive gamine experience. However, there are also other applications for XR products, such as remote assistance and training.
  • The investments by the technology vendors are creating advancements in the field of display technology, which is going to change the vision of the traditional methodology. With technology giants, like Google, investing considerable amounts in tech startups for the development of VR devices and other prominent players investing in their R & D over this segment, the future of the market will be more competitive.
  • The consumers are widely using VR applications, which is based on different purposes, such as the automobile, gaming, and media and entertainment industries. The latest technologies across the consumer electronics segment are boosting the growth of virtual reality for multiple applications across the marketplace. For instance, consumers are moving toward virtual reality in gaming with high definition, stunning graphics, and motion with high-end audio.
  • With many individuals compelled to work remotely because of the COVID-19 pandemic, the very idea of how organizations work together is evolving quickly. This is anticipated to augment the market for virtual reality. As of now, employees are collaborating utilizing video-conferencing platforms, for instance, Zoom, and talking on Slack, Teams, and other texting applications. However, there’s another, the conceivably undiscovered path for individuals to work together regardless of whether they’re handfuls or even several miles apart: virtual reality (VR).

Scope of the Report

Virtual reality blurs the line between digital and physical worlds, thereby, generating a sense of being present in the virtual environment for consumers. Several multinational corporations, such as Sony and HTC, are venturing into this market space. 

Tethered HMDs
Standalone HMDs
Screenless Viewer
By End User
Media and Entertainment
Military and Defense
Real Estate
North America
Asia Pacific
Latin America
Middle East and Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Healthcare Industry Offers Potential Growth

  • Virtual reality (VR) has been widely studied and applied in numerous medical applications. In pharmacy, VR can potentially be applied as follows, adjunctively or as a replacement for pharmacotherapy in drug design and discovery, pharmacist education, and patient counseling and behavior modification.
  • VR applications in healthcare are foreseen to continue growing and evolving over the coming years. VR is also likely to have a significant role in nano-surgery and microsurgery, with projects, such as the Da Vince Surgical System used in many American and European countries for minimally invasive procedures laparoscopic surgeries.
  • Likewise, medical associations and professional organizations are increasingly focusing on measuring the impact of VR on health treatments, which translates to improvements in different industry areas and the redesign of traditional healthcare systems.
  • In January 2019, VRHealth, a tech company focused on virtual reality products for various healthcare implementations, launched a new set of apps that look to facilitate remote monitoring and family caregiving better. Developed in collaboration with AARP’s Innovation Lab and announced at CES 2019, the app-based platform employs in-home VR for a range of different use cases and capabilities, according to the companies. The VR apps are now available for download on the Oculus storefront, as well as through the “Health and Wellness” section of AARP’s Alcove VR platform.
Virtual Reality Market Trends

North America Holds Significant Market Share

  • North America is one of the prominent regions for the virtual reality market. It has also been a pioneer in adopting innovations, which provides North America with an edge over other regions. Further, the region has the highest number of startups focusing on bringing innovative VR technologies for various industries.
  • According to Tracxn Technologies, there are 951 Virtual Reality startups in the United States. A few of them include Orbbec, JauntVR, Dreamscape, and Sandbox VR. Dreamscape is creating a location-based immersive virtual reality entertainment. The company aims to open a VR multiplex in Los Angeles which will use untethered VR headsets, which means that participants will be wearing VR headsets powered by a computer carried around in a custom backpack, which will allow them to move freely through space and interact with real and virtual objects as well as with each other.
  • Moreover, the investors in this region are actively looking to invest in diverse VR technology startups working in the region. For instance, the GFR Fund has invested in 17 North American startup companies based on VR technology. Such investments are expected to continue and are estimated to drive market growth in the forecast period.
  • According to a survey by Yeti LLC on "The State of Virtual Reality", examining the state of virtual reality, conducted among product developers at US-based companies, 85% of them either already have VR projects underway or will incorporate so within one to two years.
  • Other industry verticals, including aerospace, healthcare, military, gaming, and retail, are also investing in this technology to take advantage of the growth potential. For instance, Alaska Airlines is testing virtual reality headsets on selected flights between Boston and Seattle and Boston and San Diego. The airline has partnered with French company SkyLights to test the new headsets as a potential in-flight entertainment option. It is the first airline in North America to test VR at 35,000 feet.
Virtual Reality Market Share

Competitive Landscape

The global virtual reality market is witnessing a rise in competitiveness among the companies. The market consists of various major players, such as Oculus, Google, HTC, Samsung, Sony, and Lenovo. In terms of market share, these significant players currently dominate the market. However, with increasing technology innovations, many of the companies are increasing their market presence by securing new contracts and tapping new markets. Some of the recent developments in the market are:

  • September 2020 - Sony revealed PS5 accessory pricing, including a USD 70 DualSense controller. The most significant price is that of Sony’s new DualSense controller, which will cost USD 69.99 for additional gamepads, which is a USD 10 increase compared to the USD 59.99 MSRP for the DualShock 4.
  • March 2020 - XRHealth announced the first Virtual Reality (VR) telehealth support groups for people in isolation due to the coronavirus, where patients with similar ailments can gain support from each other and from doctors associated with the XRHealth telehealth clinics.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness – Porter’s Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Competitive Rivalry within the Industry

    3. 4.3 Technology Snapshot

    4. 4.4 Assessment of the impact of COVID-19 on the Virtual Reality Market

    5. 4.5 Market Drivers

      1. 4.5.1 Increasing Adoption of Virtual Reality in Commercial Application

      2. 4.5.2 Increasing Demand for VR Setup for Training Across Various End-user Segments

    6. 4.6 Market Restraints

      1. 4.6.1 Health Risks from Using Virtual Reality Headsets in the Long Run


    1. 5.1 AR, VR, and MR Market Trends

    2. 5.2 Pricing Analysis of Major VR Headsets

    3. 5.3 Emergence of Location-based Reality

    4. 5.4 Demand for VR Training Services and its Future Market Opportunities

    5. 5.5 Growth in B2B Enterprise and Industrial Wearables


    1. 6.1 By HMDs

      1. 6.1.1 Tethered HMDs

      2. 6.1.2 Standalone HMDs

      3. 6.1.3 Screenless Viewer

    2. 6.2 By End User

      1. 6.2.1 Gaming

      2. 6.2.2 Media and Entertainment

      3. 6.2.3 Retail

      4. 6.2.4 Healthcare

      5. 6.2.5 Military and Defense

      6. 6.2.6 Real Estate

      7. 6.2.7 Education

    3. 6.3 Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East and Africa





    1. 10.1 Company Profiles

      1. 10.1.1 Oculus VR LLC

      2. 10.1.2 Sony Corporation

      3. 10.1.3 Samsung Electronics Co. Ltd.

      4. 10.1.4 Google LLC

      5. 10.1.5 Lenovo Group Ltd.

      6. 10.1.6 Pico Interactive Inc.

      7. 10.1.7 StarVR Corporation

      8. 10.1.8 FOVE Inc.

      9. 10.1.9 Unity Technologies Inc.

      10. 10.1.10 Unreal Engine (Epic Games Inc.)

      11. 10.1.11 Crytek GmbH

      12. 10.1.12 Autodesk Inc.

      13. 10.1.13 Eon Reality Inc.

      14. 10.1.14 3D Systems Corporation

      15. 10.1.15 Dassault Systemes SE

    2. *List Not Exhaustive


**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Virtual Reality (VR) Market market is studied from 2018 - 2026.

The Virtual Reality (VR) Market is growing at a CAGR of 48.7% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Oculus VR LLC, Sony Corporation, Samsung Electronics Co. Ltd., Google LLC, Lenovo Group Ltd are the major companies operating in Virtual Reality (VR) Market .

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!