Virtual Reality Services Global Market Report 2024

The virtual reality services market size has grown rapidly in recent years. It will grow from $10.02 billion in 2023 to $11.22 billion in 2024 at a compound annual growth rate (CAGR) of 12.0%. The growth witnessed in the historical period can be primarily attributed to the rising demand in the gaming and entertainment sectors, increased corporate adoption for training purposes, enhanced accessibility due to reduced costs, significant investment in content creation and the development of cinematic and media experiences.

The virtual reality services market size is expected to see rapid growth in the next few years. It will grow to $18.54 billion in 2028 at a compound annual growth rate (CAGR) of 13.4%. Looking ahead to the forecast period, the growth of the virtual reality market can be attributed to the integration of 5G technology, expanding applications in the enterprise and industrial sectors, adoption in healthcare and therapeutic contexts, the growth of immersive social experiences, and increased integration of augmented reality. Key trends expected in this forecast period include the utilization of VR in e-commerce and retail, the development of location-based entertainment, the creation of travel and tourism experiences, enhanced cross-industry collaborations, and the emergence of virtual social spaces.

The utilization of virtual reality services in telehealth plays a crucial role in propelling the growth of the virtual reality services market. With the need to train and equip healthcare professionals to deal with the challenges posed by COVID-19 patients, virtual reality-powered tools have become essential. These tools offer a simulated environment that can efficiently prepare doctors and nurses to handle an anticipated surge in COVID-19 cases. Virtual reality training services, specifically tailored for scenarios related to COVID-19 pathology, provide a highly realistic and beneficial training experience. They enable medical students, doctors, and nurses to swiftly apply their learned principles and procedures in real-world situations. For example, applications like XRHealth facilitate the treatment and monitoring of COVID-19 patients in hospital quarantine as well as after their return home. Thus, the increasing demand for virtual reality services in telehealth is a significant driver of the virtual reality services market's growth.

The primary categories of virtual reality services encompass hardware and software. These services are delivered based on various service components, including consulting, training, implementation, integration, operation, and maintenance. VR services find applications across a wide range of industries, such as healthcare, education, real estate, advertising, travel, gaming, entertainment, and more. Consulting, in this context, refers to offering expertise on a particular subject to a third party in exchange for a fee. Advisory and implementation services are often included as part of the service offerings.

The virtual reality services market research report is one of a series of new reports that provides virtual reality services market statistics, including virtual reality services industry global market size, regional shares, competitors with a virtual reality services market share, detailed virtual reality services market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality services industry. This virtual reality services 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 growth of the gaming industry is expected to be a significant driver of the virtual reality services market in the future. The gaming industry encompasses the development, distribution, and consumption of video games across various platforms, including consoles, personal computers, mobile devices, and online platforms. Gamers are increasingly seeking immersive experiences, and virtual reality (VR) technology offers a solution to meet this demand. VR gaming content, social interactions in virtual environments, and the emergence of VR eSports are expanding rapidly, attracting gamers to VR services. The competitive nature of the gaming industry encourages ongoing innovation in VR, both in terms of hardware and accessories. For instance, in July 2023, the Entertainment Software Association reported that US consumers spent $59.6 billion on video games in 2021, reflecting a significant increase from the $56.1 billion spent in 2020. As a result, the thriving gaming industry is a key driver behind the growth of the virtual reality services market.

The high cost associated with virtual reality services is a significant impediment to the growth of the virtual reality services market. Achieving the best possible VR experience can be quite expensive, and it requires a substantial financial investment. For instance, individuals may need to spend several hundred dollars, even on the lower end of the cost spectrum, just for a high-quality graphics card, without factoring in the expenses for other essential components of the computer. To build a high-end virtual reality system, which includes a powerful computer, the costs can easily reach $1,000 or more. In addition, premium VR headsets like the Vive or Oculus Rift from HTC can be quite expensive, with price tags of $599 and $799, respectively. Consequently, the high overall cost of VR experiences is expected to pose a hindrance to the growth of the virtual reality services industry.

Remote shopping using virtual reality has emerged as a significant trend in the virtual reality services market. With the global COVID-19 pandemic leading to isolation and quarantine measures, many people have shifted away from in-person shopping. However, this shift doesn't mean that e-commerce companies have to discontinue their engagement with customers and clients. Instead, virtual reality offers a valuable alternative, allowing businesses to provide potential customers with novel and immersive shopping experiences without limitations on outreach. E-commerce companies now have the opportunity to redefine the customer experience and transform their shopping journeys by leveraging VR services. For example, the US-based brand GAP has developed a virtual Dressing Room app that enables users to virtually try on clothing items before making a purchase decision. This innovative approach helps customers make informed choices, ultimately reducing the number of product returns and alleviating financial pressures on retailers.

Leading companies in the virtual reality services market are actively creating innovative solutions tailored to virtual reality-based education to maintain a competitive advantage in the industry. Virtual reality-based learning leverages three-dimensional, computer-generated environments to enable learners to interact with educational content, thereby enhancing their comprehension and knowledge retention. As an example, in April 2023, Coursera Inc., a US-based online learning company, introduced a range of new VR course experiences and AR (Augmented Reality) content developed in partnership with Meta Inc. These VR courses, offered in collaboration with renowned universities, provide immersive learning opportunities across various subjects, including human physiology, Chinese language, and public speaking. Additionally, Coursera launched the advanced Meta AR Developer Professional Certificate, encompassing AR applications in social media, web browsers, and mobile apps, as well as a beginner-friendly Spark Creator AR Certification Prep Specialization.

Major companies operating in the virtual reality services market include Skywell Software LLC, LittlStar's, Creative Solutions, Gramercy Tech LLC, HQSoftware LLC, Program-Ace LLC, Groove Jones LLC, Xicom Technologies Ltd., Zco Corporation, The Intellify, Quy Technology Pvt. Ltd., Fluper Ltd., JPLoft Solution, Credencys Solutions Inc., HorizonCore Infosoft Pvt. Ltd., Quytech Company, Hedgehog lab Ltd., IndiaNIC Infotech Limited, Chetu Inc., Vakoms LLC, Delta Reality, Dyfuzja Software Development Co., Cortex Inc., Chocolate Milk & Donuts LLC, NARSUN Studios, Setapp Inc., Oodles Technologies Pvt. Ltd., Infotrum LLC, Sumeru Inc., NewGenApps, HTC Corporation, Sony Group Corporation, Oculus VR LLC, Google LLC, Samsung Electronics Co. Ltd., Lenovo Group Ltd., Meta Platforms Inc., NVIDIA Corporation, Apple Inc., Amazon Inc., Unity Technologies Inc., Unreal Engine 3D, Autodesk Inc., Eon Reality Inc., 3D Systems Corporation, Dassault Systèmes SE, Pico Interactive Inc., StarVR Corporation, FOVE Inc.

Asia-Pacific was the largest region in the virtual reality services market in 2023. North America was the second largest region in the virtual reality services market. The regions covered in the virtual reality services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the virtual reality services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The virtual reality services market includes revenues earned by entities by providing virtual reality services that are used in different sectors such as aerospace, defense, gaming, entertainment, tourism, diagnostics and surgeries. The market value includes the value of related goods sold by the service provider or included within the service offering. 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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