VR market analysis
VR (virtual reality) is a technology that creates an artificial image of reality. It combines dedicated software and hardware. This VR market analysis shows what the global market looks like, what the technology is used for today and how the market is forecast to develop.
The value of the global VR market in 2023 exceeded USD 25.11 bn. The market is forecast to exceed USD 244.84 bn by 2032, with a compound annual growth rate of 27.5% in 2023–2030. Asia and Australia are among the fastest-growing VR markets in the world. Their market share was 39% in 2022. Europe is expected to become the fastest-growing regional market, with a projected CAGR of over 29.3% in the forecast period. This is because VR is widely used in industry, especially in gaming and automotive. Europe's large gaming population also supports the adoption of modern VR headsets. Fast-growing sales of advanced VR hardware for gamers in European countries have significantly accelerated the growth of the regional market.
Virtual reality requires a headset, sometimes called VR goggles. Depending on the headset model, other components of a VR set may also include controllers and motion sensors. According to Statista, worldwide headset sales are expected to reach 14.31 m units in 2024.
| Indicator | Value |
|---|---|
| Global VR market value, 2023 | over USD 25.11 bn |
| Forecast global VR market value, 2032 | over USD 244.84 bn |
| CAGR of the global VR market, 2023–2030 | 27.5% |
| Share of Asia and Australia in the VR market, 2022 | 39% |
| Projected CAGR of the European VR market | over 29.3% |
| Expected worldwide headset sales, 2024 (Statista) | 14.31 m units |
What types of VR headsets are there?
VR headsets can be divided into three basic categories: phone headsets, computer headsets and standalone headsets.
What is VR technology used for?
Virtual reality is mostly used for games, physical exercise and watching films, but increasingly also for professional purposes, including clinical services and education.
So far, the most popular uses of virtual reality have been games, physical exercise and watching films and events. As the technology has become more popular and accessible, it has been adapted for professional purposes. The rapid development of AR and VR technology worldwide is significantly expanding the market. According to NewGenApps, the global user base of AR and VR games will grow to 216 million by 2025.
Growing demand for video games also gives vendors an opportunity to offer VR headsets. For example, in 2022 British consumers spent around GBP 4.66 bn (USD 5.83 bn) on video games, an increase of 2.3% on the previous year. A survey carried out in September 2023 showed that many Steam users use VR headsets, and more than 41% of them use the Oculus Quest 2.
The US government recognises the potential of VR as a valuable tool in many sectors. For example, in September 2023 the US Food and Drug Administration announced that VR can provide clinical services to patients in their homes. The education sector in North America is also rapidly incorporating VR into its curricula to give students practical and interactive learning opportunities.
Who leads the VR headset market?
The leaders of the VR headset market are Meta Platforms (Oculus), Alphabet, Sony Interactive Entertainment, Samsung Electronics, HTC and Valve, although the market is not fully consolidated.
The current leaders of the VR headset market are the following companies:
Despite these clear leaders, the VR market is not considered fully consolidated. Many companies are developing the technology and producing headsets, and some of them are start-ups.
What is the future of the VR market?
The VR market is moving towards greater accessibility through lower prices and easier use, as shown by standalone headsets that need no computer, console or separately installed sensors.
Technology trends in the virtual reality market aim to make VR ever more accessible to consumers through lower prices and greater ease of use. Standalone headsets are a clear example. They do not need a connection to external devices such as a computer or console, so VR can be used without inconvenient cables. Built-in sensors also mean that new headsets do not require separate sensors to be installed. Such devices also often need less space, so VR entertainment can be enjoyed in smaller rooms than before. This lowers the barrier to entry for new consumers and makes the technology easier to use.
Ready-made market reports in PDF
Market Scan by MarketHub has ready-made PDF reports on selected markets: market size, key players, trends and data sources. If your market is not covered, we will prepare an in-depth market analysis.