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The virtual reality headset market size is estimated to grow at a CAGR of 45.95% between 2023 and 2028. The market size is forecast to increase by USD 25.19 billion. The growth of the market depends on several factors, including the rising interest and growth of gaming, the decrease in hardware costs of VR headsets, and the advancements in cutting-edge technology. The use of computer modeling and simulation to create an artificial three-dimensional (3D) visual or other sensory world is known as virtual reality. VR apps use interactive devices, which can be worn as goggles, headsets, gloves, or body suits, to send and receive information and submerge the user in a computer-generated environment that mimics reality.
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The global VR headset market is experiencing a period of rapid evolution, driven by a combination of factors, including advancements in technology, growing consumer interest, and the increasing adoption of virtual reality (VR) in various industries. Key trends shaping the industry include a shift towards standalone VR headsets, the increasing popularity of VR gaming, and a growing focus on the development of immersive VR experiences. As VR technology continues to improve and become more affordable, there is a rising demand for VR headsets, particularly among gamers, content creators, and businesses seeking to enhance their customer experiences. The VR headset market is also witnessing a shift towards standalone VR headsets, which do not require a separate PC or console to operate. Additionally, the increasing popularity of VR gaming and the development of immersive VR experiences, such as virtual tours and training simulations, are driving demand for VR headsets. Overall, the global VR headset market presents both challenges and opportunities for businesses, as they navigate the evolving landscape and strive to meet the changing needs of consumers.
The virtual reality headset market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
The market share growth by the commercial segment will be significant during the forecast period. Under the VR headset market, commercial applications constitute a sizeable share. These applications show the variety of ways in which businesses use immersive VR technologies to improve training, experiences, and productivity. This category includes a wide range of businesses, from education and entertainment to enterprise solutions.
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The commercial segment showed a gradual increase in the market share of USD 712.91 million in 2018. Leading companies in the global virtual reality market are addressing the commercial segment by providing customized VR solutions that are suited to certain industrial requirements. Moreover, VR headsets have had a revolutionary effect on the entertainment sector, a key component of commercial VR adoption, drawing a devoted user base. Thus, such factors under the commercial segment will drive the growth of the VR headset market during the forecast period.
Mid-range VR headsets are positioned in between high-end devices and low-end devices, which have advanced technology but are frequently less expensive, occupy a strategic position in the global VR headset market, and are typically more feature-rich and affordable. Furthermore, VR headset market players like Samsung, LG Electronics, etc. that aim to cater to the mid-range device segment understand how important it is to find a careful balance between price and quality. Hence, such factors under the mid-range device segment will propel the growth of the virtual reality headset market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American virtual reality (VR) headset market has grown significantly due to the rising consumer demand for more engaging and immersive digital experiences. Industry heavyweights such as Oculus (owned by Meta Platforms, formerly Facebook), HTC, Sony, and Valve are among the major participants in the regional market as of 2023.
Furthermore, in North America, enterprise and commercial sectors are showing more interest in the regional virtual reality (VR) headset market, leveraging VR for collaborative workspaces, training, and simulations. Businesses provide VR and mixed reality (MR) solutions with industry-leading resolution and precision and have become more popular in the enterprise market. Mixed reality is also being used in the education sector. Hence, such factors are expected to drive the virtual reality headset market growth in this region during the forecast period. The report includes a comprehensive outlook on the virtual reality headset market, offering forecasts for the industry segmented by application, which comprises commercial and individual. Additionally, it categorizes type into mid-range device, low-end device, and high-end device, and covers geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The market report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The global VR headset market is undergoing a period of significant transformation, driven by a confluence of factors, including advancements in technology, growing consumer interest, and the increasing adoption of virtual reality (VR) in various industries. Key trends shaping the industry include a shift towards standalone VR headsets, the increasing popularity of VR gaming, and a growing focus on the development of immersive VR experiences. As VR technology continues to improve and become more affordable, there is a rising demand for VR headsets, particularly among gamers, content creators, and businesses seeking to enhance their customer experiences. The VR headset market is also witnessing a shift towards standalone VR headsets, which do not require a separate PC or console to operate. Additionally, the increasing popularity of VR gaming and the development of immersive VR experiences, such as virtual tours and training simulations, are driving demand for VR headsets. Overall, the global VR headset market presents both challenges and opportunities for businesses, as they navigate the evolving landscape and strive to meet the changing needs of consumers.
The rising interest and growth in the gaming industry is the key factor driving VR headset market growth. VR headset producers now have a rich market as a result of the convergence of cutting-edge technology and consumer demand for immersive experiences, which has driven virtual reality into the mainstream. The global virtual reality headset market has grown significantly owing to the massive expansion of the gaming sector during the COVID-19 pandemic in 2021.
Moreover, VR headsets provide a revolutionary solution to satisfy gamers' ongoing needs for experiences that are more realistic and immersive than ever before. Prominent gaming corporations, namely Oculus (a subsidiary of Meta Platforms), HTC, and Sony, have utilized this trend by creating superior virtual reality headsets, namely Oculus Rift, HTC Vive, and PlayStation VR. Thus, such factors involving the rising interest and growth in the gaming industry will propel the market's growth during the forecast period.
The growing AR/VR integration introduced by companies is the primary trend shaping virtual reality headset market growth. The integration of AR/VR is gaining traction because of its ability to improve user experiences. This is especially true in the gaming industry, where major market players are integrating AR elements into their VR games. For example, Microsoft's HoloLens 2 is a technology that combines AR and VR. In the HoloLens 2, holographic images are superimposed on the user's environment.
In addition to games, AR/VR is also being used in the enterprise sector for training, simulations, and collaboration. Market players such as Oculus and HTC have been creating VR headsets with augmented reality capabilities that are designed for business applications outside of gaming. The healthcare sector is also adopting AR/VR within VR headsets for medical education, patient training, and surgical design. Moreover, advancements in technology, including commercial aviation and military headsets, enhance communication, training, and situational awareness for personnel in high-stakes environments. These headsets provide features like noise cancellation, clear voice transmission, and integrated communication systems crucial for aviation and military operations. The role of graphics processing units (GPUs) in these advancements is critical, as they provide the necessary computational power to render complex AR/VR environments and ensure smooth user experiences.
Rising health concerns and problems related to user comfort is a challenge that affects VR headset market growth. Motion sickness or virtual reality sickness phenomenon arises when there is a gap between the user's perception of the visual information and the actual motion they experience. Long-term usage of virtual environments can cause nausea, vertigo, and pain, which prevents VR technology from becoming widely used. As a result, market players are under pressure to create solutions that lessen these negative impacts and improve customer comfort.
In addition, prolonged VR headset usage leads to visual fatigue and eye strain. Because virtual reality is so immersive, users pay close attention, which causes eye strain and even long-term visual problems. Reducing eye strain technology such as higher display resolutions, refresh rates, and eye-tracking capabilities, are crucial to address these issues. Furthermore, it is critical to make sure the headset has enough ventilation and heat dissipation to avoid overheating, which can cause pain and even hurt the user's health. Thus, such factors may impede market growth during the forecast period.
The virtual reality headset market growth and forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the VR headset market forecast report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The virtual reality headset market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The virtual reality headset market is experiencing significant growth, driven by innovations in software, content, and VR simulators. Key players, including large technology companies and start-ups, are introducing high-resolution displays, compact devices, and head-mounted displays to meet the needs of commercial industries, retail sectors, and healthcare applications. In the medical vertical, virtual training, simulation events, medical training, and assistance in planned surgeries are enhancing healthcare provisions, patient care systems, and the overall experience for surgeons. VR devices such as head-mounted displays, gesture-tracking devices, and projectors are also making strides in real estate and classroom applications, allowing immersive design and training.
However, the market faces challenges, including VR sickness, dizziness, lethargy, eyesight issues, hearing issues, and neck pain, which are common health concerns. The adoption of fully immersive, semi-immersive, and non-immersive VR devices continues to expand, with AR devices complementing the growth of virtual reality in various sectors. In live virtual entertainment, the meta virtual stage is becoming a popular platform, supported by head-up displays and VR projectors. Hardware advancements, including powerful processors and sensors, are enhancing the overall performance of VR headsets, while issues such as low resolution are gradually being addressed. The market for VR glasses and head-mounted displays is booming, particularly in healthcare, where they are being used to improve patient outcomes and assist in surgeries. As VR adoption accelerates, the development of new compact, high-performance devices is expected to fuel further market growth.
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Market Scope |
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Report Coverage |
Details |
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Page number |
158 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 45.95% |
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Market Growth 2024-2028 |
USD 25,199.01 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
41.74 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., ByteDance Ltd., FOVE Inc., Goertek Inc., HP Inc., HTC Corp., LG Electronics Inc., Meta Platforms Inc., Microsoft Corp., NOLO Co. Ltd., Pimax Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Sony Group Corp., Valve Corp., Varjo Technologies Oy, WorldViz Inc., and Xiaomi Communications Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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