The Europe AI in Virtual Reality Market is expected to witness market growth of 41.9% CAGR during the forecast period (2024-2031).
The Germany market dominated the Europe AI in Virtual Reality Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $14.89 billion by 2031. The UK market is exhibiting a CAGR of 41% during 2024-2031. Additionally, the France market would experience a CAGR of 43% during 2024-2031.
In VR environments, non-playable characters (NPCs) have historically been limited in behaviour and interaction, often following predetermined scripts. AI transforms these characters by enabling them to respond to the user in real-time based on their actions. Through advanced AI algorithms like machine learning and natural language processing (NLP), NPCs can interpret user gestures, voice commands, and emotional states, providing lifelike interactions.
Additionally, AI in VR is making strides in mental health by providing personalized therapeutic interventions. Virtual reality exposure therapy (VRET), used to treat conditions like post-traumatic stress disorder (PTSD), phobias, and anxiety, is enhanced by AI to adjust scenarios based on real-time feedback from the patient. AI algorithms can analyze the user's physiological and emotional responses, such as heart rate and facial expressions, to determine their stress level or emotional state and then modify the virtual environment accordingly.
Government support is a significant enabler of the AI in VR industry's growth in the EU. The European Commission funds various projects to foster innovation and technological development in virtual reality. With more than half of the EU’s virtual participants involved in EU-funded projects, financial backing accelerates AI-driven VR advancements. These public investments help ensure European industries remain competitive in the VR landscape, particularly in healthcare, education, and manufacturing sectors, where AI integration enhances operational efficiency and service delivery.
Based on Technology, the market is segmented into Computer Vision, Machine Learning & Deep Learning, Natural Language Processing (NLP), and Gesture, Speech Recognition & Others. Based on Platform, the market is segmented into Head-Mounted Displays (HMDs), Desktop Computers & Consoles, Mobile Devices, Projectors & Smart Glasses, and Wearables & Body Tracking Devices.
The Germany market dominated the Europe AI in Virtual Reality Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $14.89 billion by 2031. The UK market is exhibiting a CAGR of 41% during 2024-2031. Additionally, the France market would experience a CAGR of 43% during 2024-2031.
In VR environments, non-playable characters (NPCs) have historically been limited in behaviour and interaction, often following predetermined scripts. AI transforms these characters by enabling them to respond to the user in real-time based on their actions. Through advanced AI algorithms like machine learning and natural language processing (NLP), NPCs can interpret user gestures, voice commands, and emotional states, providing lifelike interactions.
Additionally, AI in VR is making strides in mental health by providing personalized therapeutic interventions. Virtual reality exposure therapy (VRET), used to treat conditions like post-traumatic stress disorder (PTSD), phobias, and anxiety, is enhanced by AI to adjust scenarios based on real-time feedback from the patient. AI algorithms can analyze the user's physiological and emotional responses, such as heart rate and facial expressions, to determine their stress level or emotional state and then modify the virtual environment accordingly.
Government support is a significant enabler of the AI in VR industry's growth in the EU. The European Commission funds various projects to foster innovation and technological development in virtual reality. With more than half of the EU’s virtual participants involved in EU-funded projects, financial backing accelerates AI-driven VR advancements. These public investments help ensure European industries remain competitive in the VR landscape, particularly in healthcare, education, and manufacturing sectors, where AI integration enhances operational efficiency and service delivery.
Based on Technology, the market is segmented into Computer Vision, Machine Learning & Deep Learning, Natural Language Processing (NLP), and Gesture, Speech Recognition & Others. Based on Platform, the market is segmented into Head-Mounted Displays (HMDs), Desktop Computers & Consoles, Mobile Devices, Projectors & Smart Glasses, and Wearables & Body Tracking Devices.
List of Key Companies Profiled
- Microsoft Corporation
- HTC Corporation
- Meta Platforms, Inc.
- Samsung Electronics Co., Ltd. (Samsung Group)
- Sony Corporation
- Unity Software Inc.
- Magic Leap, Inc.
- Apple, Inc.
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- Google LLC
Market Report Segmentation
By Technology
- Computer Vision
- Machine Learning & Deep Learning
- Natural Language Processing (NLP)
- Gesture, Speech Recognition & Others
By Platform
- Head-Mounted Displays (HMDs)
- Desktop Computers & Consoles
- Mobile Devices
- Projectors & Smart Glasses
- Wearables & Body Tracking Devices
By Application
- Gaming & Entertainment
- Education & Training
- Healthcare & Medical
- Retail & E-commerce
- Social Media & Communication
- Industrial & Manufacturing
- Tourism & Travel
- Others
By Country
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Europe AI in Virtual Reality Market by Technology
Chapter 6. Europe AI in Virtual Reality Market by Platform
Chapter 7. Europe AI in Virtual Reality Market by Application
Chapter 8. Europe AI in Virtual Reality Market by Country
Chapter 9. Company Profiles
Companies Mentioned
- Microsoft Corporation
- HTC Corporation
- Meta Platforms, Inc.
- Samsung Electronics Co., Ltd. (Samsung Group)
- Sony Corporation
- Unity Software Inc.
- Magic Leap, Inc.
- Apple, Inc.
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- Google LLC
Methodology
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