Virtual Reality Software Market Report 2025

The virtual reality software market size has grown exponentially in recent years. It will grow from $16.01 billion in 2024 to $20.31 billion in 2025 at a compound annual growth rate (CAGR) of 26.9%. The growth in the historic period can be attributed to gaming and entertainment adoption, enterprise training and simulation, healthcare and medical applications, architectural and design visualization, education, and e-learning initiatives.

The virtual reality software market size is expected to see exponential growth in the next few years. It will grow to $48.64 billion in 2029 at a compound annual growth rate (CAGR) of 24.4%. The growth in the forecast period can be attributed to remote collaboration and communication, expanding applications in industry verticals, the rise of social VR experiences, integration with augmented reality (AR), and consumer adoption for product interaction. Major trends in the forecast period include healthcare applications expansion, affordable hardware options, content creation, innovation surge, focus on user experience improvement, and government and military applications utilization.

The growth of the gaming industry is a significant driver of the virtual reality (VR) software market. VR-powered games offer advantages over traditional media, as they provide a more immersive and engaging experience. During the pandemic, many individuals turned to VR games to alleviate boredom and anxiety. For example, an affordable VR game called COVID Escape Room was created to help children learn real-world skills and concepts within a virtual setting. Through this game, children not only learn effective handwashing and sneeze etiquette to prevent COVID-19 infection but also grasp the importance of social distancing in an enjoyable way. According to the American Gaming Association, in May 2023, consumer demand for gaming entertainment resulted in record-breaking commercial gaming revenue of $60 billion in 2022, reflecting a 14 percent increase from the previous year. Therefore, the expanding gaming industry is propelling the growth of the virtual reality software market.

The increasing prevalence of robotic surgeries is anticipated to drive the growth of the virtual reality (VR) software market in the coming years. Robotic surgery, a form of minimally invasive surgical procedure, utilizes robotic systems to assist in operations. VR software plays a crucial role in enhancing surgical training, planning, and providing real-time assistance to surgeons. It also improves patient education, data visualization, and the overall efficiency and precision of robotic surgeries. For instance, in July 2023, the National Institutes of Health (NIH), a U.S.-based government agency, reported that by early 2023, over 11 million robotic surgeries had been performed globally using Intuitive Surgical's Da Vinci robots, with more than 7,500 units installed worldwide. Therefore, the growing number of robotic surgeries is a key factor driving the expansion of the virtual reality software market.

The incorporation of virtual reality (VR) into healthcare via mobile apps stands out as a significant trend in the virtual reality software market. VR-based mobile applications facilitate the treatment of various diseases, addressing numerous health issues. Additionally, these VR apps serve educational purposes, extending beyond students to include other interested stakeholders. As an illustration, in September 2022, Novant Health, a US-based healthcare company, introduced VR training for its administrative and clinical team members in leadership. This immersive virtual reality leadership training, featuring voice activation, helps leaders navigate sensitive issues with their teams, drawing inspiration from 'Talking Taboo.' It provides a realistic environment for practicing challenging workplace discussions while tackling unconscious bias.

Leading companies in the virtual reality software market are increasingly exploring partnership opportunities to exchange knowledge and expertise, aiming to gain a competitive edge. For instance, in 2021, ArborXR and Matts Digital announced a partnership to deliver seamless extended reality solutions at scale in Europe and beyond. Similarly, in July 2022, HTC Corporation, a Taiwan-based consumer electronics manufacturer, collaborated with VRdirect GmbH, a Germany-based virtual reality solution provider. This partnership aims to open up the B2B metaverse to various business types, with HTC's VIVE Business AppStore now offering VRdirect software for the HTC Vive Focus 3.

In April 2022, Axon Enterprise, Inc., a US-based manufacturer of electrical weapons, acquired Foundry 45 for an undisclosed amount. This acquisition has strengthened Axon's capabilities in delivering innovative, immersive virtual reality training modules, enhancing its public safety training offerings, and expanding its global reach in growth markets. Foundry 45, a US-based virtual reality training company specializing in developing immersive training modules for large enterprises, aligns seamlessly with Axon's objectives.

Major companies operating in the virtual reality software market include Microsoft Corporation, Qualcomm Incorporated, BAE Systems AB, Blippar Inc., Pixologic Inc., Razer Inc., WorldViz., Unity Technologies, Oculus VR LLC, EON Reality Inc., Mirra Inc, High Fidelity Inc., Virtalis Holdings Limited, Unigine Holding S.à r.l., Starbreeze Studios, Smartvizs Private Limited., Axonom Powertrak, Istaging Corp., Techviz SAS, The LearnPro Group, Wild Technology Inc, Imaginate Technologies., Briovr, Cupix Inc., Metaio Gmbh, High Tech Computer Corporation, Viar, Phenomatics Virtual Reality Software, Engineering Systems International. Group, Arcadia Augmented Reality, NVIDIA Corporation, Sony Interactive Entertainment, Valve Corporation, Autodesk Inc., Parametric Technology Corporation, Dassault Systèmes S.A., Alphabet Inc., Samsung Electronics Co. Ltd.

Asia-Pacific was the largest region in the virtual reality software market in 2024. North America was the second largest region in the global virtual reality software market analysis. The regions covered in the virtual reality software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtual reality software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Virtual reality (VR) is an artificially generated environment through software, presented to users in a manner that convinces them to perceive and accept it as a real environment.

The primary categories of virtual reality software include 3D modeling software, 360-degree custom VR software, and real-time simulation software. 3D modeling software is employed to generate a virtual three-dimensional representation of a physical object. These software applications are implemented through on-premise and cloud modes, catering to diverse sectors such as automotive, medical, real estate, oil and gas, entertainment, industrial, and other applications.

The virtual reality software market research report is one of a series of new reports that provides virtual reality software market statistics, including virtual reality software industry global market size, regional shares, competitors with a virtual reality software market share, detailed virtual reality software market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality software industry. This virtual reality software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The virtual reality software market includes revenues earned by entities by offering virtual reality software that are used in different sectors such as aerospace, defense, gaming, entertainment, tourism, diagnostics and surgeries. Virtual reality (VR) is an artificial environment generated with software and displayed to people so that the user suspends convictions and accepts them as real environments. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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