Virtual Reality Devices Global Market Report 2024

The virtual reality devices market size has grown rapidly in recent years. It will grow from $13 billion in 2023 to $15.22 billion in 2024 at a compound annual growth rate (CAGR) of 17.1%. The historical growth of the market can be attributed to various factors, including the utilization of virtual reality in gaming and entertainment, training and simulation, healthcare and therapy, and education and training.

The virtual reality devices market size is expected to see rapid growth in the next few years. It will grow to $25.57 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%. Looking ahead, the forecasted growth is expected to be driven by increased adoption of virtual reality in the enterprise sector, a growing focus on health and wellness applications, the rise of remote work and collaboration, advancements in mixed reality (MR) technologies, and the implementation of 5G connectivity. Several significant trends in the forecast period include the development of wireless and standalone VR devices, the emergence of social VR platforms, a heightened emphasis on health and user comfort, innovations in hand and body tracking, and a growing emphasis on content creation and user-generated content in the virtual reality industry.

The increasing demand for virtual reality devices is revolutionizing traditional safety training methods for employees, driving the growth of the virtual reality devices market. Virtual reality offers an immersive and secure training environment for employees within organizations. Unlike conventional training methods, which often fail to replicate real-time crisis scenarios, VR training can recreate these situations, enabling individuals to respond as they would in actual emergencies. This approach provides effective and safe training for staff, resulting in fewer errors and improved information retention compared to traditional training methods. As an example, Ford utilizes virtual reality technology to simulate real-life situations, delivering more engaging and effective training for its staff compared to traditional theoretical training methods.

The primary types of virtual reality devices consist of handheld devices, head-mounted devices, gesture-controlled devices, and various others. Handheld VR devices allow users to freely navigate and explore virtual environments. VR technologies encompass semi and fully immersive, as well as non-immersive setups, and find applications across various sectors such as medical and healthcare, commercial, education, advertising and marketing, commerce, energy and utilities, entertainment, gaming, design and engineering, logistics, and more.

The virtual reality devices market research report is one of a series of new reports that provides virtual reality devices market statistics, including virtual reality devices industry global market size, regional shares, competitors with a virtual reality devices market share, detailed virtual reality devices market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality devices industry. This virtual reality devices 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 rising demand for virtual reality devices in the entertainment and gaming industry is expected to be a driving force behind the growth of the virtual reality devices market. The entertainment and gaming sector encompasses a wide range of activities, including video games, mobile games, computer games, console games, online gaming, virtual reality experiences, augmented reality applications, movies, TV shows, music, live performances, sports events, theme parks, and more. Virtual reality technology enhances user engagement by offering interactive and immersive experiences, seamlessly merging virtual and real-world elements to provide a new dimension of entertainment and gaming. In the gaming industry, virtual reality has revolutionized gameplay by immersing players in virtual environments and enabling real-time interactions. The increasing demand for virtual reality in the entertainment and gaming sector is driving innovation, substantial investment in research and development, and the widespread adoption of virtual reality technologies. This, in turn, is fueling the expansion of the virtual reality devices market. For example, in February 2022, according to Meta, a US-based technology company, the company's reality labs, encompassing the VR and AR segments, generated $2.2 billion in revenue in 2021, a significant increase from the $1.1 billion generated in 2020. This growth can be attributed to robust sales of Oculus devices, contributing to the overall revenue expansion in Meta's VR and AR segments. Thus, the growing demand for virtual reality devices in the entertainment and gaming industry is a key driver of the virtual reality devices market's growth.

The COVID-19 lockdowns created significant disruptions in both the demand and supply chains, which are expected to serve as a major hindrance to the growth of the virtual reality market in 2020. According to the World Trade Organization (WTO), the COVID-19 outbreak led to unparalleled disruptions in global trade and the overall economy, resulting in reduced consumption and production on a worldwide scale. Furthermore, a report from Media Post published in March 2020 predicted that shipments of virtual reality headsets would experience a decline of approximately 17% during the same year due to disruptions in the supply chain caused by COVID-19 lockdown measures. As a result, these interruptions in both demand and supply chains are poised to be significant factors contributing to the decline in shipments of virtual reality devices in 2020.

The integration of 5K stereoscopic video into VR devices represents a prominent trend reshaping the virtual reality device market. This technology, offering 5K-resolution video, supersedes the earlier use of low-resolution 360 video technology in VR headsets. The incorporation of 5K stereoscopic video promises to deliver a comprehensive and highly detailed immersive experience for VR users. For example, Oculus VR, a US-based technology company, has developed the 'Guided Meditation VR' app, a virtual reality relaxation application that incorporates 5K stereoscopic video content in the version designed for the Oculus Go, a mobile VR headset.

Prominent companies in the virtual reality devices market are introducing innovative products, such as ultra-high-resolution displays, to maintain their competitive positions. Ultra-high-resolution displays, commonly referred to as 4K resolution, provide a higher pixel density and sharper image quality compared to standard high-definition (HD) displays. For example, in June 2023, Apple Inc., a US-based technology company, launched Apple Vision Pro. This spatial computer seamlessly integrates digital content with the physical world, featuring an ultra-high-resolution display system that responds to user input through their eyes, hands, and voice. The device operates on visionOS, a spatial operating system that supports multitasking and offers extensive screen real estate. Vision Pro delivers captivating entertainment experiences, spatial photography, immersive FaceTime communication, and industry-leading privacy and security features.

In May 2021, Snap Inc., a US-based camera and social media company, completed the acquisition of WaveOptics for $500 million. This strategic acquisition provided Snap with exclusive access to WaveOptics' augmented reality (AR) technology, which allowed Snap to enhance its Spectacles AR glasses and solidify its leadership in the social AR hardware sector. WaveOptics is a UK-based company specializing in the design and production of diffractive waveguides for wearable AR devices.

Major companies operating in the virtual reality devices market include Google, Sony Corporation, Samsung Electronics Co.Ltd, Oculus VR LLC, Marxent Labs, Microsoft Corporation, HTC Corporation, Lenovo Group Ltd, AMD, Cyberglove Systems Inc., Fove Inc., LG Electronics Inc., Eon Reality Inc., Leap Motion, Inc., Unity Technologiesn, Firsthand Technology, Wevr, Nvidia, Snap, Bricks & Goggles, Prenav, Virtuix, Apple, Qualcomm, Magic Leap, Unity Technologies, Vuzix, Pimax, Varjo, Ultraleap, Manus VR, WorldViz, Sixense, StarVR, Sensics, OSVR, InContext Solutions, Eonite Perception, Survios, Jaunt, NextVR, The Void, Dreamscape Immersive, Zero Latency

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

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

The virtual reality devices market consists of sales of head mounted display (HMD) devices, gesture tracking devices (GTD), projectors and display walls (PDW), and other virtual reality devices. 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.

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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