Virtual Reality Market Analysis Report By Device, By Technology, By Component, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global virtual reality market size was accounted for USD 10.32 billion in 2019. It is projected to witness a CAGR of 21.6% over the forecasted years, 2020 to 2027. The rising demand for 3-D visual experience prevailing among the users and the development of high-performance computers is expected to drive the market growth for virtual reality.

VR technology is also largely used for educational and training purposes. For instance, the need for training pilots and surgeons is propelling the demand for VR-based systems. Also, the necessity to understand many complex problems like protein molecule structure has become easy due to such technologies.

VR technology reduces the cost required for training purposes by creating enhanced visualizations. Training across several industries like machining operations and healthcare has been facilitated due to the emergence of VR technology. Also, the incorporation of VR technology in architectural organizations for visualizing the output of urban planning and architectural training is estimated to trigger market growth.

Application Insights

In 2019, the commercial segment held the largest share of around 52.5% across the global market. This can be associated with the rising adoption of VR systems across the entertainment and gaming industry. Moreover, the increasing adoption of smartphones by the millennial population is expected to trigger the demand for VR technology across several commercial applications.

The other application segment is anticipated to register significant growth over the forecasted period, 2020 to 2027. This can be attributed to the rising influence of VR theme parks, VR art galleries, and VR music on the millennial population. Moreover, the emergence of VR headsets is anticipated to drive growth for the gaming industry across the globe.

Device Insights

The HMD (head-mounted display) segment accounted for the largest share of around 61.4% across the global virtual reality (VR) market, in 2019. This can be associated with the flexibility and availability of a wide range of HMDs like tethered, hybrid, and self-contained HMDs. Moreover, the interactive display of virtual images and deployment of augmented reality(AR) makes use of HMDs, which is expected to boost their market growth across the globe.

The GTD (gesture-tracking device) segment is projected to register the fastest growth with a 24.3% CAGR from 2020 to 2027. This segment includes VR projectors, projection systems, and large-screen monitors. The emergence of the latest recognition technologies like visual gesture systems is anticipated to augment the growth for this segment in the upcoming years.

Technology Insights

The semi & fully immersive technology segment accounted for the largest share of 79.4% across the global market, in 2019. The rising popularity of VR devices that are HMD-based is projected to augment its growth. This technology is generally used in combination with high-resolution displays, hard simulators, and fast processing PCs. Also, the usage of semi-immersive technology for the training of pilots is anticipated to propel the VR market growth for this segment.

The non-immersive technology segment is expected to witness moderate growth in the upcoming years. Also, the feature of providing an enhanced computer-generated environment despite its immersion in the virtual world is expected to drive market growth. These systems majorly rely on computers, displays, gaming consoles, and i/o devices like mice, controllers, and keyboards. But, their usage is limited to quite a few applications like gaming, design, and healthcare owing to the perception of 2-D digital content provided by them.

Component Insights

The hardware component segment accounted for the highest share of around 68.8% across the global market in 2019. This can be associated with the rising usage of electronic devices and smartphones prevailing among the millennial population. Also, the surging popularity of gaming consoles, untethered headsets, and input & output devices is expected to trigger up market growth.

The segment of software is projected to register the highest CAGR across the global market from 2020 to 2027. This can be attributed to the rising need for analyses of incoming data and input-output device management. Moreover, the need for the creation of a 3D environment for training and product prototyping is estimated to bolster the demand for VR technology.

Regional Insights

In 2019, Asia Pacific held the largest share of around 41.4% across the global market. This can be associated with the rapid technological advancements being undertaken by key organizations for promoting VR technology across developing countries like India, Japan, and China. For example, the introduction of 5G services across Japan in 2019 is driving the telecom companies to offer several VR/AR platforms for enhancing the usage of 5G services. Moreover, favorable policies and initiatives being undertaken by governing authorities for the promotion of travel and tourism activities are anticipated to propel the demand for virtual reality across this region.

Europe is projected to witness the highest growth with a 23.3% CAGR from 2020 to 2027. This can be associated with the rising adoption of VR technology in many organizations located across Germany, France, the U.K., and Italy. Further, the rising popularity of VR headsets in the gaming community residing across this region is expected to trigger up market growth.

COVID-19 Impact Insights

The virtual reality (VR) market has been impacted positively on account of the ongoing COVID-19 pandemic. The imposition of work from home policies by several organizations has triggered the need for virtual team meetings and conferences. Also, the emerging concept of online education and training is estimated to upsurge the market growth for VR technology. Further, rapid technological advancements being undertaken by key players for enhancing user experience are expected to contribute significantly towards the market growth over the post-pandemic period.

Virtual Reality Market Share Insights

The key players operating across the global market are Barco; Alphabet, Inc.; HTC Corporation; Microsoft; Sensics, Inc.; Facebook Technologies, LLC; Ultraleap Limited; and CyberGlove Systems Inc. They are continuously focusing on product development and innovation to widen their geographical reach and customer base.

Several strategies like acquisitions, mergers, collaborations, and partnerships are being undertaken by the key players to gain a competitive advantage. For example, Apple Inc. is planning to acquire a U.S.-based company named NextVR Inc. in 2020. This is anticipated to boost the VR initiative undertaken by Apple for enhancing its presence across the gaming and entertainment industry.

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 2016 to 2027 in each of the sub-segments. For this study, Million Insights has segmented the global virtual reality market based on device, technology, component, application, and region:

• Device Outlook (Revenue, USD Million, 2016 - 2027)
    • Head-mounted Display (HMD)
    • Gesture-tracking Device (GTD)
    • Projectors & Display Wall (PDW)

• Technology Outlook (Revenue, USD Million, 2016 - 2027)
    • Semi & Fully Immersive
    • Non-immersive

• Component Outlook (Revenue, USD Million, 2016 - 2027)
    • Hardware
    • Software

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Aerospace & Defense
    • Consumer
    • Commercial
    • Enterprise
    • Healthcare
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East & Africa (MEA)