Consumer Virtual Reality Market by Component and Geography - Forecast and Analysis 2022-2026

The consumer virtual reality market share is expected to increase by USD 52.77 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 60.80%. This report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.

The consumer virtual reality market research report extensively covers market segmentation by component (hardware and software) and geography (APAC, North America, Europe, MEA, and South America).

The consumer virtual reality market report also offers information on several market vendors, including Alphabet Inc., Bitmovin Inc., Firsthand Technology Inc., HTC Corp., Manus Machinae BV, Microsoft Corp., NVIDIA Corp., Sony Group Corp., Ultraleap Ltd., and Unity Technologies Inc. among others.

What will the Consumer Virtual Reality Market Size be During the Forecast Period?

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Consumer Virtual Reality Market: Key Drivers, Trends, and Challenges

The increasing demand for VR technology is notably driving the consumer virtual reality market growth, although factors such as high development cost of consumer virtual reality solution may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the consumer virtual reality industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Consumer Virtual Reality Market Driver

• One of the key factors driving growth in the consumer virtual reality market is the increasing demand for VR technology.
• Customers are increasingly adopting VR technology for professional or private use. This adoption rate increased significantly in the last decade.
• An increasing number of customers are actively requesting VR solutions, whereas others are curious about VR, and seeking information about it. 
• Technological innovations will further drive the demand for VR applications during the forecast period, as these applications will enable users to use the technology in a more user-friendly manner.
• The growing application of VR technology in several sectors, such as education, medical, retail, and training, will further boost the growth of the market in focus.

Key Consumer Virtual Reality Market Trend

• Investments in new startups is another factor supporting the consumer virtual reality market share growth.
• The VR industry has gained the attention of vendors from diverse fields. This has increased investments in VR technology from different companies as VR application is going beyond gaming.
• The funding from venture capital in small startups will promote technological advancement in the VR market, which will boost the growth of the global consumer VR market during the forecast period.
  • In October 2021, NFX announced a $150 million investment for various startups in blockchain, biotech, fintech, AR/VR, and IoT. Similarly, during H1 2020, Boost VC invested around $40 million in various sectors, including blockchain, AR/VR, hardware, and logistics.
• Such funding will boost innovation in the global consumer virtual reality market and drive its growth during the forecast period.

Key Consumer Virtual Reality Market Challenge

• The high development cost of consumer virtual reality solutions will be a major challenge for the consumer virtual reality market during the forecast period.
• VR projects combine several different components, which can be complex. Several cost factors, such as costs incurred during the creation and distribution of VR content and the cost of hardware and software, need to be considered while developing VR apps.
• The true value of VR games depends on the interactive content offered. 360-degree cameras, computer graphics, and high-end photorealistic cameras are required to develop realistic VR content.
• The total cost of creating the VR content for an app range between $1,000 and $50,000. A VR program is created for individual systems to support high-end applications such as Oculus VR, HTC VIVE, and HoloLens.
• The high development costs of VR apps, coupled with the high cost of VR gadgets, act as a challenge to the growth of the global consumer virtual reality market.

This consumer virtual reality market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global consumer virtual reality market as a part of the global IT spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the consumer virtual reality market during the forecast period.

Who are the Major Consumer Virtual Reality Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Alphabet Inc.
• Bitmovin Inc.
• Firsthand Technology Inc.
• HTC Corp.
• Manus Machinae BV
• Microsoft Corp.
• NVIDIA Corp.
• Sony Group Corp.
• Ultraleap Ltd.
• Unity Technologies Inc.

 

This statistical study of the consumer virtual reality market encompasses successful business strategies deployed by the key vendors. The consumer virtual reality market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Alphabet Inc. - The company offers virtual reality products such as Google Cardboard, Google Earth VR, and many more.

• Alphabet Inc. - Other bets segment includes businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X.
   

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The consumer virtual reality market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Consumer Virtual Reality Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the consumer virtual reality market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the IT spending market includes the following core components:

• Research and development
• Developers or manufacturers
• Sales and distribution
• End-users

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Consumer Virtual Reality Market?

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40% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for consumer virtual reality in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The presence of key vendors, the growing gaming industry in Asia, especially in Japan, China, and India, and the rising investments in VR technologies to expand their application in different fields will facilitate the consumer virtual reality market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The first outbreak of COVID-19 was reported in China in December 2019 and later spread across APAC, which led to the temporary shutdown of several IT and infrastructure companies in the region. The outbreak of COVID-19 caused several fatalities in the region, which led to the imposition of lockdowns in many countries. However, the preference for remote work culture led to increasing demand for VR solutions in online shopping and OTT platforms. As consumers spent more time on online platforms in 2020, it positively impacted the demand for VR hardware and software solutions. This trend is expected to continue during the forecast period.

What are the Revenue-generating Component Segments in the Consumer Virtual Reality Market?

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The consumer virtual reality market share growth by the hardware segment will be significant during the forecast period. Technological advances and the growing adoption of virtual reality (VR) devices are expected to drive the segment growth. The number of users for consumer virtual reality hardware is increasing, owing to the high adoption of virtual reality technology in the gaming, entertainment, retail, sports, and travel industries. The increased popularity of 360-degree videos and VR gaming has led to a surge in demand for VR hardware.

This report provides an accurate prediction of the contribution of all the segments to the growth of the consumer virtual reality market size and actionable market insights on post COVID-19 impact on each segment.

 

Consumer Virtual Reality Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 60.80%
Market growth 2022-2026	$ 52.77 billion
Market structure	Fragmented
YoY growth (%)	45.93
Regional analysis	APAC, North America, Europe, MEA, and South America
Performing market contribution	APAC at 40%
Key consumer countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Alphabet Inc., Bitmovin Inc., Firsthand Technology Inc., HTC Corp., Manus Machinae BV, Microsoft Corp., NVIDIA Corp., Sony Group Corp., Ultraleap Ltd., and Unity Technologies Inc.
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
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Consumer Virtual Reality Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive consumer virtual reality market growth during the next five years
• Precise estimation of the consumer virtual reality market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the consumer virtual reality industry across APAC, North America, Europe, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of consumer virtual reality market vendors

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