GVR Report cover Virtual Reality Market Size, Share & Trends Report

Virtual Reality Market Size, Share & Trends Analysis Report By Technology (Semi & Fully Immersive, Non-immersive), By Device (HMD, GTD, PDW), By Component (Hardware, Software), By Application, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-831-2
  • Number of Pages: 300
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global virtual reality market size was valued at USD 21.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Virtual Reality (VR) is a digitally produced experience that simulates a three-dimensional environment in the real world. The technology provides viewers with an immersive experience using VR gadgets such as gloves, headsets or glasses, and bodysuits. Virtual Reality has revolutionized the gaming and entertainment sectors by allowing users to immerse themselves in a highly simulated environment. Furthermore, the growing use of this technology in instructional training, such as for teaching engineers, mechanics, pilots, field workers, defense warriors, and technicians in the manufacturing and oil and gas sectors, is propelling the market growth.

U.S. Virtual Reality Market size, by device, 2020 - 2030 (USD Billion)

Apart from educational and training purposes, virtual reality is widely adopted for various other applications. For instance, the technology allows engineers to experiment with a vehicle's design and construction at the concept stage before beginning on costly prototypes in the automobile industry. With VR exposure therapy, the technology is also used for treating people with mental health issues. Furthermore, tourism companies use VR technology to enable potential clients or customers to take a virtual tour of monuments, iconic destinations, restaurants, and hotels.

During the COVID-19 outbreak, several industries were shut down temporarily and lockdowns were imposed to arrest the spread of the virus, in turn impacting business operations across regions. However, the increasing need for businesses to continue their activities online resulted in an increased demand for VR. Companies have shifted to virtual platforms to continue their ongoing business activities, such as attending meetings and formulating policies and strategies. Additionally, VR technology is evolving as a promising tool for virtual events. Event planners provide visitors with engaging and diverse experiences by hosting the event on a virtual platform and presenting it as a virtual reality experience. As a result, the growing popularity of virtual events is encouraging market growth.

The increasing use of VR applications in the architecture and planning sector is another factor likely to foster market growth. The use of VR technology in architecture aids in decision-making and visualizing the effects of suggested urban designs and architectural plans. It also enables the early detection and correction of faults, thus saving time and money. Moreover, several real-estate agencies have begun using virtual reality to give virtual tours of properties, increasing the likelihood of a sale. For instance, in February 2021, Zillow, an online real-estate marketplace company, introduced the Zillow 3D Home tour, an interactive media for real estate shoppers, to check out houses through VR technology remotely. The company deploys AI, which supports breaking down the obstacles between listing media, such as virtual tours and photos, and listing data, such as room dimensions and square footage.

The entertainment and sports industries have gained significant benefits from VR technology. The market for virtual reality is projected to be widely adopted in location-based entertainment, gaming, theaters, and music. For instance, in 2018, Europa-Park, a German amusement park, installed VR rollercoasters called Eurostat Coastality, which allow visitors to experience a world based on the film Valerian and the City of a Thousand Planets. In 2018, China established the VR Star Theme Park, which features over 40 VR rides. The increased popularity of VR entertainment is expected to contribute to market growth.

Device Insights

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 growing importance of VR headsets in commercial and consumer applications is propelling their demand in the market. The segment growth is fueled by the diversity and flexibility of HMDs, such as hybrid, tethered, and self-contained HMDs. These devices are used to provide training in various industries, including military, aerospace, engineering, research, and medicine, and illustrate a wide range of use cases using interactive virtual pictures. In order to provide customers with a greater immersive experience, companies are constantly involved in technological developments in this field. For instance, in March 2019, Oculus, a Facebook Technologies, LLC company, released its technologically advanced Rift S VR headset, which features inside-out tracking and a higher-resolution screen than its predecessor.

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. Different types of GTD VR hardware include sensors, processors, VR projectors, large-screen displays, and multiple projection systems. Moreover, several firms are attempting to improve the quality of processors and sensors used in VR systems to provide a more immersive experience to viewers.

Technology Insights

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. Semi and fully immersive technology replicate the architecture of real-world surroundings in a digital platform. It requires the use of complex simulators, high-resolution displays, and high-processing PCs. A VR technology allows students to practice cognitive and motor activities that they would not be able to do in an educational or therapeutic setting. Industry verticals such as construction, aviation, entertainment, and automotive have all embraced semi and fully immersive technology. For instance, in March 2021, the U.S. Air Force revealed that students who aspire to fly the Air Force's cutting-edge stealth platforms benefit the most from experimental VR fighter pilot training.

The non-immersive technology provides viewers with a computer-generated or digital environment rather than an immersive virtual world experience. This technology is thought to be more efficient in terms of network administration and is more widely available. Due to its limited 2D interaction, the technology is confined to few uses, such as gaming, designing, and medical assistance. Computer and video game consoles, input devices such as controllers, a mouse, a keyboard, and displays are required for non-immersive systems to function properly.

Component Insights

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 hardware segment includes input devices, output devices, and consoles. The rapid adoption of VR headsets in commercial applications, theme and amusement parks, and other places is anticipated to offer growth opportunities to Original Equipment Manufacturers (OEMs). Furthermore, developments in lightweight wearable technologies are expected to accelerate the demand for VR head-mounted displays.

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. VR technology is widely deployed in product prototyping and training due to its immersive three-dimensional technology. The software segment can be further divided into training, simulation, virtual tools, applications, game development, gamification, learning experience platforms, and segment reality. Increasing investments from key players in the market for introducing advanced VR software solutions and hardware devices are positively impacting the market growth. For instance, in May 2021, Axon Enterprise, Inc. introduced wireless stimulators based on virtual reality to offer hands-on training-focused solutions.

Application Insights

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 rising adoption of smartphones has resulted in the widespread use of VR technologies in the commercial sector. Many businesses are using VR to introduce new items to the general public. For instance, in April 2020, AUDI AG, a premium automaker, unveiled its Audi e-Tron Sportback using a digital platform in a social VR event.

Global Virtual Reality Market share, by application, 2021 (%) 

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. Companies such as ImmersiveTouch, Inc. and Osso VR, Inc. provide VR solutions to train medical students and surgeons. Moreover, virtual surgeries, emergency training, and VR anatomy applications are in high demand to enable medical professionals to learn more precisely. The consumer segment is expected to witness significant growth over the forecast period owing to the increasing demand for VR technology in the gaming and entertainment industries. The need for better communication and collaboration and enhanced organizational training tools across various companies is positively impacting the growth of the enterprise segment.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 40.0% in 2021, which can be attributed to the growing improvements in VR technology. The VR market witnessed significant growth in China as the country is a major distributor of HMDs and other hardware related to VR. Technological advancements are also aiding in the market's expansion in Southeast Asian countries. In 2019, Japan introduced commercial 5G services, prompting telecom companies to use strategic ingenuity to offer Augmented Reality (AR)/virtual reality viewing platforms that take advantage of 5G connectivity. Promising initiatives by the government and other related bodies, such as funds and investments to help VR enterprises, are also encouraging the implementation of VR technology in the region.

The market growth in North America can be attributed to the growing market revenue in the U.S. The U.S. has a wide presence of technologically friendly firms, such as Apple, Inc.; Microsoft; Magic Leap; and Google LLC; and carries out extensive research activities in the field of VR. Moreover, the U.S. government is promoting market expansion by offering virtual public health veterinary training courses. The market in South America is expected to grow steadily owing to the increased internet adoption and advancements in immersive technology.

Europe is estimated to emerge as the fastest-growing regional market with a CAGR of 16.6% over the forecast period. This is due to the widespread deployment of VR technology in a variety of applications across several industry sectors, particularly in the gaming and automobile industries. Europe has a larger gaming population, which helps to drive the adoption of cutting-edge VR headsets in the region. The rapid development and sale of powerful VR hardware aimed at the gaming community in European countries have accelerated the growth of the regional market. Meanwhile, the market in the Middle East and Africa is expected to witness sluggish growth owing to the slow adoption of VR technologies.

Key Companies & 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. For instance, in June 2020, Meta acquired Ready at Dawn, a VR-based video game developer, and entered into an agreement to develop games for Oculus Studios that incorporate VR-based content. In May 2020, Apple Inc. acquired NextVR Inc. to expand its VR capabilities for sports and entertainment. Companies are focusing on offering quality services to their viewers with innovative content and examining new fields with VR solutions as the market becomes more competitive.

Moreover, key players are making significant investments in R&D to include cutting-edge technologies with a variety of features in their products. Microsoft's Xbox Series X & Series S and Sony's PlayStation 5 are likely to provide VR firms with new opportunities to strengthen their position in the consumer VR arena. Many companies have realized the potential of the enterprise sector in the VR market and have forayed into the lucrative market. For instance, Microsoft and Samsung are devoted to developing VR headsets with immersive experiences in order to gain customer traction. Some prominent players in the global virtual reality market include:

  • Barco

  • CyberGlove Systems, Inc.

  • Meta

  • HTC Corporation

  • Microsoft

  • Samsung

  • Sensics, Inc.

  • Sixense Enterprises, Inc. (Penumbra, Inc.)

  • Ultraleap Limited

Virtual Reality Market Report Scope

Report Attribute


Market size value in 2022

USD 28.42 billion

Revenue forecast in 2030

USD 87.00 billion

Growth rate

CAGR of 15.0% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Device, technology, component, application, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; China; Japan; India; Brazil

Key companies profiled

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

Customization scope

Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global virtual reality market report on the basis of device, technology, component, application, and region:

  • Device Outlook (Revenue, USD Million, 2018 - 2030)

    • Head-mounted Display (HMD)

    • Gesture-tracking Device (GTD)

    • Projectors & Display Wall (PDW)

  • Technology Outlook (Revenue, USD Million, 2018 - 2030)

    • Semi & Fully Immersive

    • Non-immersive

  • Component Outlook (Revenue, USD Million, 2018 - 2030)

    • Hardware

    • Software

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Aerospace & Defense

    • Consumer

    • Commercial

    • Enterprise

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa

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