Virtual Reality market poised to reach staggering $435.36 billion by 2030

In a significant projection for the tech world, the global virtual reality market is poised to reach an astounding value of $435.36 billion by 2030. This remarkable growth is forecasted to be driven by a compound annual growth rate (CAGR) of 27.5%, starting from 2023 up to 2030.

The surge in adoption of immersive technology across various industries, including education, industrial training, and healthcare, is anticipated to be a prime driver of this growth. A notable factor contributing to this trend is the rapid expansion of high-speed 5G networks, enabling seamless and low-latency internet connections that facilitate the integration of VR technology.

Industries like education, aerospace & defense, and automotive are embracing virtual reality to meet training and research needs. Notably, Meta Platforms, Inc. made a pivotal move in October 2022 with the Meta Quest Pro VR headset launch, equipped with the Snapdragon Qualcomm XR2+ chipset. This innovation targeted professionals and creators seeking high-end VR experiences.

Virtual reality has revolutionized e-commerce by allowing users to shop in virtual environments, enhancing the overall shopping experience. Additionally, the education sector is experiencing a surge in demand for VR applications, allowing educators to conduct interactive sessions on VR-based online platforms, fostering collaborative learning.

North America is positioned to be a key player in this growth story, attributed to its dominance in the technology sector. The region’s robust technology infrastructure and the introduction of new VR products are set to propel its growth. Furthermore, the emergence of startups specializing in virtual reality is expected to provide additional avenues for market expansion.

Highlights from the Virtual Reality market report

• The Gesture Tracking Device (GTD) segment is projected to exhibit the highest CAGR of 29.9%, driven by the trend of gesture tracking for heightened immersion.
• Semi & fully immersive technology holds the lion’s share of revenue at 82.7% in 2022 due to its lifelike experience, closely simulating real-world scenarios.
• The software component segment is expected to witness a CAGR of 29.7% from 2023 to 2030, attributed to the growing demand for VR applications in gaming and entertainment.
• Asia Pacific led the market in 2022 with over 39% of the revenue share, supported by prominent VR equipment manufacturers and government initiatives promoting advanced technologies.

Key market insights

Forecast Period: 2022 – 2030
Market Value (USD) in 2022: $59.96 billion
Forecasted Market Value (USD) by 2030: $435.36 billion
Compound Annual Growth Rate: 27.5%
Regions Covered: Global

Market Dynamics

Market driver analysis

• Evolving applications in the entertainment and medical sectors
• Growing VR penetration in consumer electronics

Market challenge analysis

• High initial investments and device compatibility restrictions
• Spatial discomfort and potential health risks

Industry Analysis Tools

• PORTER’s Analysis
• Macroeconomic Analysis

Key market participants

• Alphabet Inc.
• Barco NV
• CyberGlove Systems Inc.
• Meta Platforms, Inc.
• HTC Corporation
• Microsoft Corporation
• Samsung Electronics Co., Ltd
• Sensics, Inc.
• Sixense Enterprises Inc. (Penumbra, Inc.)
• Ultraleap Limited

As the virtual reality market expands, it presents a promising landscape for technological advancements and innovative applications across various sectors. With robust growth projected over the next decade, stakeholders and consumers alike eagerly anticipate the transformative experiences that VR technology is set to deliver.

WRITTEN BY

Team Eela

TechEela, the Bedrock of MarTech and Innovation, is a Digital Media Publication Website. We see a lot around us that needs to be told, shared, and experienced, and that is exactly what we offer to you as shots. As we like to say, “Here’s to everything you ever thought you knew. To everything, you never thought you knew”