Virtual Reality Market by End-user and Geography - Forecast and Analysis 2021-2025

The virtual reality market is projected to grow by USD 75.56 billion with a CAGR of 55.34%, during the forecast period 2020 to 2025.

This virtual reality market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers virtual reality market segmentation by end-user (enterprise and consumer) and geography (North America, APAC, Europe, MEA, and South America). The virtual reality market report also offers information on several market vendors, including Alphabet Inc., Facebook Inc., Firsthand Technology Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., NVIDIA Corp., Unity Technologies Inc., Wevr, and WorldViz Inc. among others.

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

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Virtual Reality Market: Key Drivers, Trends, and Challenges

Our researcher studied the historical data for years, with 2020 as the base year, and 2021 as the estimated year, and produced drivers, trends and challenges for the virtual reality market. In the COVID-19 pandemic, the demand for the virtual reality market has impacted a lot accelerating but a holistic analysis of drivers will help in exact demands and refining marketing strategies to gain a competitive advantage.

Key Virtual Reality Market Driver

One of the key factors driving growth in the virtual reality market is the penetration of head-mounted displays (HMD) in the gaming and entertainment sector. Vendors such as Facebook increasingly emphasize the production of virtual reality HMDs such as Oculus Rift and Oculus Go. These virtual reality headsets work in tandem with various gaming consoles such as Sony PlayStation virtual reality and track the head movement of the gamer to provide 3D imagery on their stereo screens. Furthermore, products such as Oculus Touch controllers conform with the gamer's hand, enabling finger recognition, and gesture-controlled gaming, thereby further enhancing the gaming experience. For instance, in October 2021, Facebook showed a silhouette of the new virtual reality HMD. They also shared details about how it will improve the existing virtual reality hardware. It will also accurately reflect the wearer's facial expressions, giving a more human touch to the experience that users have when interacting with each other in the virtual space.

Key Virtual Reality Market Challenge

The requirement for high-speed internet and computation power will be a major challenge for the virtual reality market during the forecast period. The effective implementation of virtual reality solutions requires access to high-speed and high-bandwidth internet. Any issue such as lack of connectivity, lack of electricity, or slow network may lead to system downtime and hamper business productivity. This is a crucial challenge for the effective implementation of advanced systems among various enterprises, especially in developing countries. In addition, various virtual reality technologies have their own configurations, leading to integration issues in an exceedingly  heterogeneous information technology environment. As a result of these integration snags, consumers are expected to face interoperability issues. In addition, any upgrades to virtual reality systems bring their own set of interoperability issues. Therefore, the implementation of augmented and virtual reality in healthcare is hampered by various infrastructural and system integration issues.

This 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 2021-2025.

Parent Market Analysis

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 virtual reality market during the forecast period.

Who are the Major Virtual Reality Market Vendors?

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

• Alphabet Inc.
• Facebook Inc.
• Firsthand Technology Inc.
• HTC Corp.
• Magic Leap Inc.
• Microsoft Corp.
• NVIDIA Corp.
• Unity Technologies Inc.
• Wevr
• WorldViz Inc.

This statistical study of the virtual reality market encompasses successful business strategies deployed by key vendors. The virtual reality market is fragmented and the vendors are deploying growth strategies such as M&A to compete in the market.

Product Insights and News

• Alphabet Inc. - The company offers products such as Earth VR and Cardboard VR.

• Alphabet Inc. - The Google segment offers products such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware (including Nest), Search, and YouTube.

To make the most of the opportunities and recover from the 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 report market_name_lower contains a comprehensive market knowledge and in-depth vendor landscape add on to an analysis of the key vendors.

Virtual Reality Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the virtual reality market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain 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.

Which are the Key Regions for the Virtual Reality Market?

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33% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for virtual reality in APAC. Market growth in this region will be faster than the growth of the market in the European regions.

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.

What are the Revenue-generating End-user Segments in the Virtual Reality Market?

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The virtual reality market share growth by the enterprise segment will be significant during the forecast period.

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

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

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive virtual reality market growth during the next five years
• Precise estimation of the virtual reality market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behaviour
• The growth of the virtual reality industry across North America, APAC, 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 virtual reality market vendors

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