Virtual Reality Market Growth & Trends
The global virtual reality market size is anticipated to reach USD 69.60 billion by 2028, according to the latest report by Grand View Research, Inc. The market is expected to record a CAGR of 18.0% from 2021 to 2028. Technological advancements in the past years have made it feasible to experience real-world life in a digitally immersive environment with Virtual Reality (VR) and Augmented Reality (AR). The Covid-19 pandemic has given a rapid rise to VR-enabled platforms and tools, especially in the education and e-commerce sectors. VR technology has offered many companies new techniques and opportunities to attract potential customers to their business.
The e-commerce industry offers the unique feature of virtually trying clothes or accessories and assisting customers in making the right purchase decisions. Moreover, the temporary shutdown of educational institutions to curb the spread of coronavirus has compelled institutions to shift their academic sessions to VR-based online platforms for better collaboration. The technology has also enabled medical professionals to provide training and aid treatments through its audio-visual tool. The major drivers of the global market are the increasing adoption of automation and Artificial Intelligence (AI) across several industries.
The commencement of 5G network bandwidth that is expected to enhance the immersion experience on VR devices and the rise in smartphone penetration is also likely to boost the market growth. Various industries, such as healthcare, retail, education, manufacturing, automation, real estate, and tourism, have deployed several VR-based software/devices that have proven beneficial for their businesses. For instance, Atlantis, The Palm Dubai, a luxury resort in the UAE, offers its potential customers the opportunity to experience the ambiance of the resort through a VR 360 tool, providing an immersive and real-like sight to the viewers.
Virtual Reality Market Report Highlights
- Innovations in smartphone hardware, coupled with state-of-the-art VR-compatible headsets, are anticipated to drive the market from 2021 to 2028
- The Head-Mounted Display (HMD) segment accounted for over 60.0% of the total market share in 2020
- The semi & fully immersive technology segment accounted for the largest revenue share in 2020 and is expected to witness substantial growth over the forecast period
- This growth is attributed to the ability of the technology to provide real-like dimension to a simulated realm
- In 2020, Asia Pacific accounted for the largest market share of around 40.0% and is expected to maintain its lead throughout the forecast years