A three-pronged approach was followed for deducing the virtual reality (VR) market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:
Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for virtual reality (VR) market to gather the most reliable and current information possible.
Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of virtual reality (VR) market data depending on the type of information we’re trying to uncover in our research.
Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.
Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.
Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.
Qualitative Functional Deployment (QFD) Modelling for market share assessment.
Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.
Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.
Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.
This step also entails the finalization of the report scope and data representation pattern.
Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.
The virtual reality (VR) market was categorized into five segments, namely device (Head-Mounted Display, Gesture-Tracking Device, Projectors & Display Wall), technology (Semi & Fully Immersive, Non-immersive), component (Hardware, Software), application (Aerospace & Defense, Consumer, Commercial, Enterprise, Healthcare), and region (North America, Europe, Asia Pacific, South America, and Middle East & Africa).
The virtual reality (VR) market was segmented into device, technology, component, application,, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:
Demand estimation of each product across countries/regions summed up to from the total market.
Variable analysis for demand forecast.
Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.
Primary interviews for data revalidation and insight collection.
Used extensively for new product forecasting or analyzing penetration levels.
Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.
Primary interviews and vendor-based primary research for variable impact analysis.
The virtual reality (VR) market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; Mexico; the UK; Germany; France; Italy; China; Japan; India; South Korea; Brazil; Argentina; South Africa; Saudi Arabia.
All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.
The virtual reality (VR) market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:
Alphabet, Inc.: Alphabet, Inc., a U.S.-based multination conglomerate including Google and various other subsidiaries, provides advertising and marketing solutions for enterprises and businesses. Google's VR offerings include VR headsets like Expeditions, Tilt Brush, Jump, Daydream, Earth VR, and Cardboard. The company has marked its presence globally with many service centers.
BARCO NV: Barco, a Belgian-based technology company, offers imaging technology and digital projection solutions to majorly enterprises, the healthcare industry, and the entertainment industry. The company offers various solutions, including 3D visualization, control room, life events, medical imaging, home entertainment, projection mapping, simulation, television studio, etc.
CyberGlove Systems, Inc. - CyberGlove Systems, Inc. is an American company involved in data glove technology. It designs and develops data glove solutions for hand-centric 3D motion capturing. It offers a variety of data glove products, such as CyberGlove II, CyberGlove III, CyberTouch II, CyberGrasp, CyberTouch, CyberForce, Haptic Workstation, and related software.
Meta Technologies, LLC (Oculus) - Oculus operates under Meta Technologies, LLC, previously known as Facebook. Oculus mainly deals in VR technology and its products. The company specializes in virtual reality HMD, software development, and video games. In 2014, Meta Technologies, Inc. acquired Oculus and merged under Meta Technologies, LLC.
HTC Corporation - HTC Corporation is a Taiwan-based company engaged in the designing & manufacturing of consumer electronic products. It specializes in manufacturing consumer electronic goods such as mobile phones, virtual reality (VR) headsets, and software. HTC VIVE is the company’s first virtual reality headset developed in partnership with Valve, an American PC games company.
Microsoft Corporation - Microsoft Corporation is a U.S.-based multinational company, that develops and manufactures consumer electronic products and computer hardware & software systems. Microsoft’s virtual reality and mixed reality product offerings include its signature range of Microsoft HoloLens 2. The mixed reality solution developed by Microsoft Corp. can be used in various sectors, including manufacturing, healthcare, and education.
Samsung Electronics Co., Ltd. - Samsung Electronics Co., Ltd. is one of the flagship divisions of the Samsung Group. The company expanded its product range by entering the wearable technology market and introducing mobile virtual reality, Samsung Gear VR Innovator Edition. Its VR gears are compatible with the latest Galaxy smartphone series. The gear is powered with the Oculus VR technology to enhance the user experience.
Sensics Inc. – Sensics Inc. is the panoramic head-mounted display company. Based upon a decade of research and development, Sensics has developed a patented technology, which offers a wide range of lightweight, professional motion tracked head-mounted displays (HMDs) that combine wide field of view and high resolution. Sensics also offers low latency wireless video links, panoramic video see-through augmented reality technology as well as custom HMD designs.
Sixense Enterprises Inc. (Penumbra Inc) - Sixense Enterprises Inc. is a technology firm involved in the designing, developing, and production of Virtual Reality (VR) and 3D modeling products. Penumbra Inc. acquired the company in September 2021. Penumbra acquired a total of 90% in Sixense and plans to commercialize healthcare applications of virtual reality technology.
Ultraleap Limited - Ultraleap Limited is a U.K. based technology company that provides hand tracking software. In 2019 the company acquired Leap Motion, Inc. and entered the VR market. The company sells Leap Motion products under the brand name Ultraleap.
Supply Side Estimates
Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.
Segment revenue determination via variable analysis and penetration modeling.
Competitive benchmarking to identify market leaders and their collective revenue shares.
Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.
Demand side estimates
Identifying parent markets and ancillary markets
Segment penetration analysis to obtain pertinent
Heuristic forecasting with the help of subject matter experts
Forecasting via variable analysis
Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.
Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.
Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.
The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.
The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.
We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.
All market estimates and forecasts have been validated through primary interviews with the key industry participants.
Inflation has not been accounted for to estimate and forecast the market.
Numbers may not add up due to rounding off.
Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).
Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).
Latin America includes Central American countries and the South American continent
Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.
GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.
We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:
Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.
Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.
The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.
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