Virtual Reality (VR) Market in Education - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Virtual Reality(VR) Market in Education is Segmented by Type ( Hardware, Software, and Services (Training and Consulting and Managed Services)), End User( Academic Institutions​ (K-12 Learning, Higher Education), and Corporate Training (IT and Telecom, Healthcare, Retail and E-commerce)), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Education Virtual Reality (VR) Industry Overview

Virtual Reality (VR) Market in Education Summary
Study Period: 2018 - 2028
Fastest Growing Market: North America
Largest Market: North America
CAGR: 42.5 %

Major Players

Virtual Reality (VR) Market in Education Major Players

*Disclaimer: Major Players sorted in no particular order

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Education Virtual Reality (VR) Market Analysis

The Virtual Reality (VR) market in education is expected to register a CAGR of 42.5% over the next five years. VR technology has gained widespread recognition and adoption over the past few years. Recent technological advancements in this field have revealed new enterprises and adoption among major universities, colleges, and schools for advanced learning experiences. In addition, the market is expected to gain significant demand from corporations for corporate learning programs in the coming years.

  • Virtual reality has gained significant traction in the education world over the past few years. It offers learners an immersive experience: they can learn complicated subject matters by entering a reality-imitating virtual world where they can move, talk, make decisions, and interact with the world around them. Such an instance led to increased demand for virtual reality in education.
  • Educational institutions have started incorporating practical learning through excursions, lab experiments, group activities, and projects. The introduction of virtual reality in education has taken learning to an entirely new dimension. Immersive learning through Virtual Reality has proven to be an effective tool for expanding knowledge. It delivers digitally created information and situations that mirror real-life experiences that are mostly inaccessible to learners in traditional school settings.
  • Many companies are making learning interactive and more engaging through VR technologies by adding gaming elements to textbook material. For instance, Curiscope’s Virtuali-tee is a t-shirt and app that lets users learn about the human body. One person puts on the t-shirt while the other uses a virtual reality app on a smartphone to virtually reveal and explore the various layers inside the body.
  • Further, VR is finding extensive applications in biology, with universities and colleges worldwide using virtual reality headsets for immersive learning. For instance, last year, students at Arizona State University were learning biology in a unique virtual reality experience, hurtling through space to interact with creatures in an intergalactic wildlife sanctuary the size of a small city and to solve the mystery of why the animals are dying.
  • During the COVID-19 lockdown, technologies like AR, VR, and MR witnessed significant demand as they allowed people to shop, talk, and socialize using these immersive platforms. The COVID-19 pandemic moved learners and young students out of the classroom and into the virtual world of remote education. Many universities and schools are now taking advantage of virtual reality technology to improve access to education, both in terms of helping pupils with learning difficulties or disabilities and making learning less location-dependent. ​

Education Virtual Reality (VR) Industry Segments

Virtual reality involves the creation of simulated environments that imitate real objects or persons to create an illusion. The creation of such an illusion helps people understand the actual environments of an industry, arena, space, or situation. Virtual reality has applications across various industries, such as education, entertainment, defense, and healthcare, which are projected to bring in key revenues into the global market.

The Virtual Reality(VR) Market in Education is Segmented by Type ( Hardware, Software, and Services (Training and Consulting and Managed Services)), End User( Academic Institutions​ (K-12 Learning, Higher Education), and Corporate Training (IT and Telecom, Healthcare, Retail, and E-commerce)), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Type
Hardware
Software
Services (Training and Consulting and Managed Services)
End User
Academic Institutions
K-12 Learning
Higher Education
Corporate Training
IT and Telecom
Healthcare
Retail and E-commerce
Other End users
Geography
North America
Europe
Asia Pacific
Rest of the World

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Education Virtual Reality (VR) Market Trends

This section covers the major market trends shaping the Education Virtual Reality (VR) Market according to our research experts:

Increasing Demand For Interactive and Personalized Learning Experience

  • Increasing adoption of online education and the benefits of a virtual learning environment, such as flexible schedules, more individual accountability, mobility, student-centered learning, and others, are driving the market's growth. VR can replace physical paper models, posters, textbooks, and printed manuals. It offers less expensive and portable learning materials, making education more accessible and mobile.
  • Over the past few years, the cost of deploying VR has plunged, and the technology has expanded into more general use at almost Fortune 500 corporations, where employees working in retail, logistics, and customer service are practicing with VR headsets to get better at their jobs.
  • Various businesses worldwide use VR technology to provide their employees with a personalized learning experience, thus driving the market's growth. For instance, across the U.S., Walmart is training its employees to improve their skills using STRIVR technology, which has also worked for companies like Visa, Bank of America, BMW, Google, ABC, and more. The training simulators place the employee in a realistic setting, which tests their ability to handle different situations at the workplace.
  • In K–12 learning, virtual and augmented reality help teachers engage students in content to assist them in retaining knowledge. By using a web-based portal, teachers can control and manage the headsets, plan lessons, and monitor student progress. Teachers can set points of interest on students' headsets to direct them to certain parts of the lesson and may view thumbnail images of what each student is seeing.

Further, as the prices of VR systems drop and more people become interested in this new technology, adoption in the education sector is expected to grow. For instance, a Perkins Coie and XR Association survey of over 160 professionals found that 63% of respondents strongly agreed that immersive technology will significantly advance education over the next five years.

Virtual Reality (VR) Market in Education - Percentage of Respondents Who Agree With the Statement: Immersive Technology Will Contribute to Significant Advancements in Education Over Next Five Years, In Percentage, 2021

North America is Expected to Hold Major Share

  • The North American segment of the market studied is expected to grow significantly during the forecast period, owing to the presence of a large number of vendors, who are also investing heavily in market innovation, coupled with the dominance of the United States in the global software market. ​
  • Globally, it is expected that the United States will be one of the most innovative VR markets. Most of the companies advancing this technology are based in the United States. High technology exposure and the ease of availability of smart devices have created a strong VR market in the region.
  • Further, the region has the highest number of emerging startups focusing on bringing innovative VR technologies to various industries. According to data from Tracxn Technologies, as of September 2022, there were approximately 1,348 Virtual Reality startups in the United States.
  • According to the GSMA, the number of smartphone subscribers in North America is expected to reach 328 million by 2025. Moreover, by 2025, the region may witness an increase in the penetration rates of mobile subscribers (86%) and the internet (80%), the second-highest in the world. Increased device penetration will positively impact the region's virtual reality market for education.

The telecom companies in the region are aggressively making efforts to attract customers to use their 5G network. Hence, these regional vendors are investing in and innovating the software and platform for the development of VR applications by leveraging the upcoming 5G technology. Such events are expected to boost the growth of the market in the region.

Virtual Reality (VR) Market in Education - Growth Rate by Region

Education Virtual Reality (VR) Market Competitor Analysis

The virtual reality market in education is moderately competitive. Furthermore, research and development initiatives aimed at improving immersive virtual environments' quality, performance, and effectiveness are projected to propel market demand in the coming years, increasing competition among the key vendors.

India in January 2022, had the Central Board of Secondary Education (CBSE) collaborate with the tech giant, Meta, to train 10 lakh teachers and one crore students in Virtual Reality (VR) and Augmented Reality (AR) for the next three years. As part of this partnership, Meta provided a curriculum on digital safety, online well-being, VR, and AR.

Education Virtual Reality (VR) Market Top Players

  1. Microsoft Corporation

  2. Samsung Electronics Co. Ltd​

  3. HTC Corporation

  4. Lenovo Group Limited

  5. Meta Platforms, Inc.

*Disclaimer: Major Players sorted in no particular order

Virtual Reality (VR) Market in Education Concentration

Education Virtual Reality (VR) Market Recent Developments

  • October 2022: Japanese startup Jolly Good Inc., in partnership with Juntendo University, will commence a demonstration project to introduce medical education with virtual reality (VR) and develop human medical resources through VR at Royal Mahidol University and throughout Thailand. The company will provide Mahidol University with VR teaching material production facilities and VR experience equipment to create an environment that enables the self-production of VR teaching materials for infectious disease treatment education at the university.
  • May 2022: XR Immersive Tech Inc., a provider of immersive virtual reality (VR) experiences, announced that its recently acquired subsidiary, Synthesis VR Inc., joined forces with VictoryXR in bringing the company’s educational content to LBVR operators worldwide, accessible through the Synthesis VR content marketplace. VictoryXR provides virtual reality (VR) educational content for levels starting in kindergarten and up to grade 12.

Education Virtual Reality (VR) Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    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 Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Ecosystem Analysis

      1. 4.3.1 Hardware

      2. 4.3.2 Software and App Development

      3. 4.3.3 Content Creators

      4. 4.3.4 Service Providers

      5. 4.3.5 Network Providers

      6. 4.3.6 End Users

    4. 4.4 Market Drivers

      1. 4.4.1 Increasing demand for interactive and personalized learning experience

      2. 4.4.2 Higher acceptance among stakeholders owing to higher engagement and scope for blended learning technology

      3. 4.4.3 VR-based technology benefits from being the first entrant in the education & corporate category

      4. 4.4.4 The role of education and training among corporates has transformed with the growth in digital engagement and compelling content

    5. 4.5 Market Restraints

      1. 4.5.1 Limited content and cost efficiency of consumer-grade applications

      2. 4.5.2 Dependence on external factors, such as bandwidth and network, for ensuring optimal experience

    6. 4.6 Market Opportunities

      1. 4.6.1 Growth in budget allocation on interactive learning by education bodies and the corporate sector

      2. 4.6.2 Technological advancements to make content accessible to a wider audience

    7. 4.7 VR App Distribution and Pricing Model Analysis in the Education Sector

    8. 4.8 Key-use cases and Implementation case studies

      1. 4.8.1 China's implementation of VR in classrooms

      2. 4.8.2 The Corporate sector initiatives toward VR training for service standardization

      3. 4.8.3 Implementation of virtual field trips through Google's offering

    9. 4.9 Technology Snapshot

    10. 4.10 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Hardware

      2. 5.1.2 Software

      3. 5.1.3 Services (Training and Consulting and Managed Services)

    2. 5.2 End User

      1. 5.2.1 Academic Institutions

        1. 5.2.1.1 K-12 Learning

        2. 5.2.1.2 Higher Education

      2. 5.2.2 Corporate Training

        1. 5.2.2.1 IT and Telecom

        2. 5.2.2.2 Healthcare

        3. 5.2.2.3 Retail and E-commerce

        4. 5.2.2.4 Other End users

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia Pacific

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 HTC Corporation

      2. 6.1.2 Lenovo Group Limited

      3. 6.1.3 Samsung Electronics Co. Ltd

      4. 6.1.4 Microsoft Corporation

      5. 6.1.5 Meta Platforms, Inc.

      6. 6.1.6 Avantis Systems Limited

      7. 6.1.7 Unity Teach

      8. 6.1.8 Nearpod Inc

      9. 6.1.9 zSpace Inc

      10. 6.1.10 Virtalis Holdings Limited

      11. 6.1.11 EON Reality

      12. 6.1.12 Veative Labs

      13. 6.1.13 Alchemy VR Limited

      14. 6.1.14 VR Education Holdings

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Education Virtual Reality (VR) Market Research FAQs

The Virtual Reality (VR) Market in Education market is studied from 2019 - 2027.

The Virtual Reality (VR) Market in Education is growing at a CAGR of 42.5% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Microsoft Corporation, Samsung Electronics Co. Ltd​, HTC Corporation, Lenovo Group Limited, Meta Platforms, Inc. are the major companies operating in Virtual Reality (VR) Market in Education .

Virtual Reality (VR) in Education Industry Reports

In-depth industry statistics and market share insights of the Virtual Reality (VR) Market in Education sector for 2020, 2021, and 2022. The Virtual Reality (VR) Market in Education research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Virtual Reality (VR) Market in Education report PDF.

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