Global Virtual Reality Market - Segmented by Product Type (Hand-held Devices, Gesture-controlled Devices, HMD), VR Technology (Non-immersive, Semi-immersive, Fully-immersive), Applications (Medical and Healthcare, Education, Commerce, Advertising and Marketing), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global virtual reality 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 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
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 Market Share
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 Market