In the United States, a survey showed that as of March 2024, around 29 percent of respondents were not at all interested in virtual reality (VR). Just 14 percent of respondents stated that they were very interested in VR. This contrasts with 22 percent of respondents aged 35 to 54 years who said they were very interested.

The consumer virtual reality market, divided into hardware and software segments, is forecast to reach 2.6 billion U.S. dollars in size in 2020. The market is set to grow further in the following years, rising to beyond five billion U.S. dollars by 2023.

Virtual reality

Virtual reality (VR) technology makes use of sensory devices to immerse users in a simulated environment. Specially designed headsets and glasses can be used for visual immersion, while handhelds and wearables offer tactile immersion. Optical devices such those developed by Facebook’s Oculus and Sony have shipped millions of units as consumers look to explore the possibilities offered by virtual environments. The element of complete immersion means that VR devices can be used as tools for education, tourism, entertainment, and even professional tasks such as architecture design.

Augmented reality

Augmented reality (AR) is a technology closely related to VR that uses devices to change the visual environment of users. Rather than completely immerse the user in a simulated environment like VR, AR superimposes computer generated elements on top of the user’s real-world environment, allowing for applications such as head-up displays and first-person GPS navigation. As part of the wider extended reality (XR) industry, the global AR market size is expected to grow considerably in the coming years.

Virtual Reality (VR) Technology, A Computer-Simulated Reality Creating An Artificial Environment, is Increasingly Used in Sectors Like Education, Gaming, and AI Applications. This Immersive Multimedia Offers A 3D Virtual World, Enhancing Learning Experiences and Gaming Environments. AI Integration Further Enriches the Virtual Environment. The Development of the Metaverse, A Collective Shared Space Combining VR, Augmented Reality, Mixed Reality, and Brain-Computer Interface, Promises An Interactive Virtual Reality Experience. The VR Market, Segmented by Hardware, End-User, and Geography, is Dominated by the Gaming Sector, With North America Leading Due To Numerous Startups Focusing On Computer-Generated Reality Technologies.

The statistic shows the number of virtual reality (VR) and augmented reality (AR) users in the United States from 2017 to 2023. In 2020, 83.7 million people used AR at least once per month in the United States. The corresponding figure for 2023 was forecast to reach over 110 million users.

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Virtual Reality Market Size 2025-2029

The virtual reality market size is forecast to increase by USD 133.17 billion at a CAGR of 38% between 2024 and 2029.

The market is experiencing significant growth, driven by recent advancements in VR technology. One key trend is the integration of artificial intelligence (AI) and machine learning (ML) with VR technology, enabling more enriching and interactive experiences. However, the high cost of enriching VR hardware remains a challenge for widespread adoption. Other growth factors include increasing demand for VR in various industries such as gaming, healthcare, education, and training. Additionally, the rising popularity of VR in events and entertainment is expected to boost the market growth. Overall, the VR market presents numerous opportunities for innovation and growth, particularly In the areas of content creation, hardware development, and application expansion.

What will be the Size of the VR Market During the Forecast Period?

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The market is experiencing significant growth, driven by advancements in VR technology and increasing demand across various industries. The healthcare sector is leveraging VR for therapy and training, while defense personnel and technicians utilize it for simulation and instruction. In the gaming and entertainment industries, VR headsets, gloves, and bodysuits offer enriching experiences, with hardware segment revenues projected to grow.
The software segment, including virtual platforms and AI applications, is also expanding, with real-time rendering and 3D virtual worlds becoming increasingly popular. The automotive industry is adopting VR for design and marketing, while AR and VR content creation tools enable the development of virtual tours, virtual classrooms, and VR arcades. The metaverse and virtual fitness markets are also gaining traction, offering new opportunities for businesses and consumers alike.
The Virtual Reality (VR) market is experiencing rapid growth, driven by innovations in VR headsets and immersive VR gaming experiences. Virtual training solutions are revolutionizing industries, with VR in healthcare offering groundbreaking treatments and therapies. The integration of augmented reality and metaverse development is enhancing user interaction across various sectors, including VR in real estate and VR tourism experiences. Social VR platforms and VR collaboration tools are transforming communication and teamwork, while VR fitness experiences offer new ways to stay active. Cinematic VR content is gaining popularity, alongside VR for education, enterprise VR adoption, and advancements in haptic feedback technology, which enhances immersion. As VR continues to evolve, it promises to redefine the way we work, learn, and interact with the digital world.

How is this Virtual Reality Industry segmented and which is the largest segment?

The virtual reality (VR) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Enterprise
  Consumer


Component

  Hardware
  Software


Device

  Head-mounted display
  Gesture-tracking device
  Projectors & display wall


Technology

  Semi & fully enriching
  Non-enriching


Geography

  North America

    Canada
    US


  APAC

    China
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  Middle East and Africa



  South America

    Brazil

By End-user Insights

The enterprise segment is estimated to witness significant growth during the forecast period.

Virtual reality (VR) refers to an artificially generated environment, experienced by users through specialized hardware, such as headsets. This technology creates enriching experiences that mimic real-life situations, popularly used in gaming, entertainment, retail, sports, travel, and healthcare industries. The increasing adoption of VR technology is driven by advancements in hardware, leading to heightened user experiences. The healthcare sector's utilization of VR is particularly noteworthy, with the potential for therapeutic applications and training simulations. The growing user base in various industries is expected to fuel the market expansion throughout the forecast period.

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The enterprise segment was valued at USD 6.37 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 33% 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.

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The total number of active virtual reality (VR) users worldwide is forecast to be around 171 million as of 2018, around 16 million of these considering themselves to be hardcore gamers. Virtual reality technology is often used with some sort of optical headset device, with major VR hardware developers such as Sony, HTC, and Oculus combining to ship millions of these devices each year.

What is virtual reality?

Virtual reality is a type of technology that uses devices such as headsets, earphones, and handsets to immerse users in a completely simulated digital environment. The characteristic of complete immersion means that VR devices can be used as tools for education, tourism, entertainment, and even professional tasks such as architecture design.

Augmented reality

Augmented reality (AR) is a technology closely related to VR that uses devices to change the visual environment of users. Rather than completely immerse the user in a simulated environment like VR, AR superimposes computer generated elements on top of the user’s real-world environment, allowing for applications such as head-up displays and first-person GPS navigation. Forecasts suggest that the AR market alone could reach revenues in the hundreds of billions of U.S. dollars by 2025.

Access the summary of the Augmented Reality and Virtual Reality Chips (AR/VR Chips) market report, featuring key insights, executive summary, market size, CAGR, growth rate, and future outlook.

Forecasts suggest that by the year 2020 the largest segment within the virtual and augmented reality industry will be video games. Video game segment revenues are expected to reach nearly seven billion U.S. dollars by 2020 and continue growing to around 11.5 billion by 2025. The healthcare and engineering segments are also expected to experience high levels of growth in the coming years, further exhibiting the wide range of possible uses for the technology.

Augmented reality

While augmented and virtual reality are often grouped together due to their obvious similarities, augmented reality tends to place more emphasis on enhancing existing environments rather than immersing the user in entirely new ones. Forecasts expect the AR market to skyrocket in the coming years, with projected revenues increasing from around six billion U.S. dollars in 2018 to nearly 200 billion dollars by 2025.

Virtual reality

Virtual reality technology lends itself particularly well to uses within video games and simulation. Major tech industry firms such as Sony, Facebook, and Microsoft have seen the potential of VR technology and quickly developed products of their own to compete in the budding market. Mostly through the success of its PlayStation VR product, Sony has established itself as the clear leader in the VR headset market.

The Report Covers Global Virtual Reality Healthcare Companies & Statistics and it is Segmented by Component (Hardware, Software, and Services), Application (Pain Management, Education and Training, Surgery, Patient Care Management, Rehabilitation and Therapy Procedures, and Others), End User (Hospitals and Clinics, Research Organizations and Pharma Companies, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The market provides the value (in USD million) for the above segments.

The Global Virtual Reality (VR) Platforms for Education and Training in Industry is Segmented by Type (Hardware, Software, and Services (Training and Consulting and Managed Services)), End User(Academic Institutions (K-12 Learning, Higher Education), and Corporate Training (IT and Telecom, Healthcare, Retail and E-commerce)), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Access the summary of the Augmented Reality and Virtual Reality in Education market report, featuring key insights, executive summary, market size, CAGR, growth rate, and future outlook.

The virtual reality market size was over USD 31.23 billion in 2024 and is projected to reach USD 727.4 billion by 2037, growing at around 27.4% CAGR during the forecast period i.e., between 2025-2037. Asia Pacific industry is estimated to account for largest revenue share by 2037, on the back of hike in launch of affordable VR devices by local companies in countries, namely China and India.

In 2022, 8.83 million augmented reality (AR) and virtual reality (VR) headset shipments were recorded. In 2023, AR/VR headset shipments are expected to reach 10.06 million units, of which VR devices will account for 9.59 million.

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Explore the Virtual Reality (VR) Social Platforms Market trends! Covers key players, growth rate 77.9% CAGR, market size $26.74 Billion, and forecasts to 2033. Get insights now!

In 2024, unit sales of virtual reality (VR) headworn devices were expected to amount to 5.89 million, rising to 6.73 million units in 2025. Forecasts suggest that by 2028, VR headworn device sales will surpass 9.5 million units.

In 2022, the number of augmented reality (AR) and virtual reality (VR) devices shipped worldwide reached 9.11 million units, with forecasts suggesting that this is set to fall to 7.45 million units in 2023.

AR/VR market

AR, VR, and mixed reality (MR) are the cornerstones of the extended reality (XR) field. XR technologies extend the reality we experience by either merging the virtual and the “real” worlds, or by creating a fully immersive experience. AR/VR headset vendors include Meta, Sony, and HTC who offer VR devices, while Microsoft, Magic Leap, Vuzix, and Apple offer AR headsets and glasses.

Metaverse

Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using VR headsets, AR glasses, smartphone apps, or other devices. The potential metaverse market opportunity ranges from 3.75 trillion U.S. dollars to 12.46 trillion U.S. dollars, depending on the share of the digital economy that shifts to the metaverse and market expansion. Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together.

The virtual reality in gaming market size was valued at USD 13.49 billion in 2024 and is poised to reach USD 448.27 billion by the end of 2037, expanding at around 30.6% CAGR during the forecast period i.e., between 2025-2037. Asia Pacific industry is likely to account for majority revenue share by 2037, backed by increasing game revenue along with largest gamers population in the region.

The Metaverse technology market is experiencing explosive growth, projected to reach a substantial size of $1715.6 million in 2025. While the provided CAGR is missing, considering the rapid advancements and increasing investments in technologies like VR, AR, and blockchain that underpin the Metaverse, a conservative estimate of a 25% Compound Annual Growth Rate (CAGR) from 2025 to 2033 seems plausible. This would imply significant market expansion, driven by factors such as the rising adoption of immersive gaming experiences, the expanding use of the Metaverse for social interactions and virtual conferences, the increasing demand for advanced content creation tools within virtual worlds, and the growing interest from major tech companies like Meta, Microsoft, and Roblox. The market segmentation reveals a diverse landscape with Mobile and Desktop access points, along with applications spanning gaming, social interaction, conferencing, content creation, and other emerging use cases. This diversity contributes to the market's robust growth trajectory. Significant regional variations exist. North America, with its strong technological infrastructure and established gaming markets, is expected to command a considerable market share. However, Asia Pacific, particularly China, India, and South Korea, demonstrates enormous growth potential due to its large and rapidly expanding digital population. Europe and other regions are also witnessing substantial uptake, although at varying rates depending on technological maturity and consumer adoption levels. While regulatory uncertainties and technological challenges could act as restraints, the overall market outlook remains incredibly positive, indicating the Metaverse’s potential to transform various aspects of life and business in the coming decade. This robust growth is further fueled by continued innovation in hardware and software, leading to more immersive and accessible Metaverse experiences for a wider user base.

The Global Virtual Reality Travel Experiences Market Size Was Worth USD 1.34 Billion in 2023 and Is Expected To Reach USD 12.05 Billion by 2032, CAGR of 27.60% .