Virtual Reality Market Demand Is Increased Due To Rapid Penetration Of Head-Mounted Display (HMD) In Various Industries By 2030

Virtual Reality Industry Overview

The global virtual reality market size is expected to reach USD 87.0 billion by 2030, according to the latest report by Grand View Research, Inc. The market is expected to expand at a CAGR of 15.0% from 2022 to 2030. The rapid penetration of Head-Mounted Display (HMD) in various industries, particularly in entertainment and gaming, has led to significant market growth. Additionally, the advent of 5G technology has positively impacted the adoption of virtual technology.

Virtual Reality Market Segmentation

Grand View Research has segmented the global virtual reality market on the basis of device, component, application, technology and region:

Based on Device Insights, the market is segmented into Head-mounted Display (HMD), Gesture-tracking Device (GTD) and Projectors & Display Wall (PDW).

• The head-mounted display (HMD) device segment accounted for the largest revenue share of over 60.0% in 2021 and is expected to dominate the market from 2022 to 2030.
• The segment growth is fueled by the diversity and flexibility of HMDs, such as hybrid, tethered, and self-contained HMDs.
• The gesture-tracking device (GTD) segment is projected to register the fastest CAGR of 17.4% over the forecast period.
• This growth can be attributed to a significant transition in demand from standard gesture tracking to visual gesture tracking as visual gesture recognition is a novel and rapidly increasing technology that allows for more immersive and natural human-computer interaction.

Based on the Component Insights, the market is segmented into Hardware and Software.

• The hardware segment accounted for the largest revenue share of over 65.0% in 2021 and is anticipated to dominate the market over the forecast period. The rapid use of smartphones, tablets, and other technologically advanced electronic gadgets is contributing to the segment growth.
• The software segment is expected to register the highest CAGR of 17.0% over the forecast period. This can be attributed to the ability of the software to generate proper feedback, analyze incoming data, and manage input/output devices.

Based on the Application Insights, the market is segmented into Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare and Others.

• The commercial segment accounted for the largest revenue share of over 50.0% in 2021 and is anticipated to dominate the market over the forecast period.
• The increasing use of VR headsets in the commercial sector, including real estate, vehicle showrooms, and retail stores, provides new growth potential to VR companies.
• The healthcare segment is expected to register the highest CAGR of 19.3% over the forecast period, which can be attributed to the broad spectrum of prospects for VR in the healthcare sector, including disease awareness, medical marketing, and medical learning & training.

Based on Technology Insights, the market is segmented into Semi & Fully Immersive and Non-immersive.

• The semi and fully immersive segment accounted for the largest revenue share of over 80.0% in 2021. It is also estimated to register the highest CAGR over the forecast period.
• The segment growth can be attributed to the continuous surge in demand for VR HMDs.
• The non-immersive technology provides viewers with a computer-generated or digital environment rather than an immersive virtual world experience.

Virtual Reality Regional Outlook

• North America
• Europe
• Asia Pacific
• South America
• MEA

Key Companies Profile & Market Share Insights

The continued trend of technology giants bringing commercial products into the market has prompted start-ups to collaborate in order to integrate and absorb VR technologies. Key companies are pursuing mergers and acquisitions as well as collaborations with technology start-ups to gain a competitive advantage in the market.

Some prominent players in the Virtual Reality market include

• Barco
• CyberGlove Systems, Inc.
• Meta
• HTC Corporation
• Microsoft
• Samsung
• Sensics, Inc.
• Sixense Enterprises, Inc. (Penumbra, Inc.)
• Ultraleap Limited

Order a free sample PDF of the Virtual Reality Market Intelligence Study, published by Grand View Research.