Virtual Reality Headset Market Analysis Report By End Device, By Product Type, By Application Type, By Region And Segments Forecasts From 2019 To 2025

Industry Insights

The virtual reality (VR) headset market size across the globe was valued at USD 5.02 billion in 2018. It is projected to witness a 21.5% CAGR over the forecasted years, 2019 to 2025. The increasing demand for 3D (3 Dimensional) simulations for enhancing user experience coupled with rapid technological advances are projected to drive the market growth for VR headsets across the globe.

The demand for the creation of an artificial environment across gaming, retail, media, entertainment, and other applications is increasing continuously. Several devices that are cost-effective and can be worn on the body are being invented to cater to surging demand across the gaming industry. Further, wide applications of VR headsets across sectors like industrial prototyping, education, and healthcare are expected to further fuel up the market growth in the upcoming years.

Many smartphones are being developed that are compatible with these VR headsets. The media & entertainment and gaming segment together accounted for more than half of the overall market share, in 2018. These headsets are also making a huge impact on the global retail industry owing to their ability to change the shopping experience among consumers. Also, features like consumer engagement, sharing of product information, and retail accessibility are projected to trigger the demand for VR headsets.

Rapid technological advancements like virtual reality, augmented reality and their deployment in wearable devices are permitting users with an interactive and immersive experience. For example, Google Cardboard has been launched by Google for providing users with an affordable and realistic experience. These factors are anticipated to drive market growth in the upcoming years.

End Device Insights

The segment of the high-end devices held the largest share across the global VR headset market, in 2018. This can be associated with higher operational efficiency as compared to other types. Also, their adoption is increasing across several organizations due to the ability to provide self-contained tracking. The rising adoption of VR technology coupled with the adoption of high-end VR headsets is projected to gain traction across the globe.

The segment of lower-end devices is expected to register the fastest growth in the upcoming years. While the segment of medium-range VR headsets is anticipated to hold the second-largest share across the global market from 2019 to 2025. The increasing demand for affordable VR devices prevailing among the millennial population is projected to drive the market growth over the forecasted period, 2019 to 2025.

Product Type Insights

The standalone PC-connected product segment held the largest share across the global market, in 2018. It is also projected to register the highest CAGR from 2019 to 2025. These headsets have witnessed more sales than the standalone and smartphone-enabled VR headsets owing to their cost-effectiveness. But, the manufacturers are majorly focusing on producing standalone devices on account of their feature of remote usage.

Since the last few years, the sales for PC-enabled and smartphone-enabled VR headsets have been on the rise. This can be associated with their feature of application-oriented pricing. Also, the surging popularity of brands like Facebook Oculus, Samsung Gear, and Google Cardboard is expected to contribute majorly towards the market growth.

Application Type Insights

The global market can be segmented into gaming, media & entertainment, retail, healthcare, education, manufacturing, telecommunications, and others. In 2018, the gaming segment dominated the global market. This can be attributed to the enhanced user experience provided by these headsets and the increasing infiltration of gaming consoles among developing regions.

The retail application segment is anticipated to register significant growth over the forecasted period. This can be associated with the increasing demand across the retail industry coupled with the incorporation of headsets in stores by many retailers for amplifying the shopping experience. Moreover, the emergence of many e-commerce giants like Amazon and Alibaba coupled with the rising inclination towards virtual reality trials is expected to drive market growth.

Regional Insights

The Asia Pacific held the largest share across the global VR headsets market in 2018. China alone held a share of 20.0% across the global market. It is also expected to register the highest CAGR from 2019 to 2025. This growth can be associated with the surging usage of VR-technology-based devices prevailing among the millennial population. Also, rapid investments being undertaken by manufacturing and retail industries for enhancing customer experience are projected to drive market growth.

North America and Europe had shown higher adoption of VR-based devices across the manufacturing and retail industry sectors. This can be associated with the rising presence of several organizations using these technologies for enhancing customer experience. Also, the usage of VR-based devices in the defense & military sectors across the U.S. is projected to propel its market growth.

COVID-19 Impact Insights

The global market for VR headsets has been impacted positively due to the COVID-19 pandemic. The rising need for virtual meetings at offices due to the imposition of lockdown, travel restrictions, and work-from-home policies is expected to drive the demand for VR headsets. Also, the adoption of VR headsets in many educational institutions and universities for enhancing the system of online learning is gaining traction across the globe. Further, its benefits like reduction in the unnecessary travel and user-friendly interface facilitated the usage and are expected to continue to do so in the post-pandemic period.

Virtual Reality Headsets Market Share Insight

The global market includes key players such as Sony Corporation; HTC Corporation; Facebook, Inc.; Razer Inc.; Samsung Group; Microsoft Corporation; and Google. These players are constantly engaged in product development and innovation to gain a competitive advantage over other players. Few of these prominent players are also investing hugely in the launching of cost-effective VR devices across several end-use industries. Therefore, brands like Google Daydream, Google VR, Oculus, and HTC Vive are witnessing the highest share in the last few years.

Rapid technological advancements coupled with the increasing popularity of such headsets across the media & entertainment industry are projected to trigger up their demand. Several key players are engaged in leveraging their presence across emerging markets. Thus, strategies like acquisitions, partnerships, and collaboration are being undertaken by these players to widen their geographical reach.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global virtual reality headset market on the basis of the end device, product type, application, and region:

• End Device Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Low-end Device
    • Mid-range Device
    • High-end Device

• Product Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Standalone
    • Smartphone-enabled
    • Standalone PC-connected

• Application Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Gaming
    • Media & Entertainment
    • Healthcare
    • Retail
    • Manufacturing
    • Education
    • Telecommunications
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • The U.K.
        • Germany
        • France
    • Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • MEA