Virtual Reality Market Set to Grow at the Fastest Rate

Posted by Steve Stark on September 7th, 2021

The virtual reality market is estimated at USD 6.1 billion in 2020 and is expected to reach USD 20.9 billion by 2025; It is anticipated to grow at a CAGR of 27.9% from 2020 to 2025.

Driver: Penetration of HMDs in the gaming and entertainment sector post COVID-19

The use of HMDs has been high in the gaming and entertainment sector. The gaming industry has had a technological evolution with the emergence of VR and 3D technology. The use of HMDs has helped in achieving a fully immersive experience for users and has taken the gaming experience to the next level. The flawless transition achieved with the use of VR HMDs has helped bring in a unique and enhanced experience to the users. HMDs have a high penetration rate in the video gaming sector. Video game users prefer HMDs for enriching experience and entertainment. HMDs project digital images, enabling a 3D view, which enhance the user experience. Therefore, the growing gaming sector would drive the market for HMDs and, in turn, the VR. This market growth is expected, especially in North America and Europe.

The COVID pandemic is expected to support the growth of the VR market. The key players operating in the market are focusing on increasing the sale of their products. For instance, the VR technology of Sony owns some of the largest movie, music, and gaming companies in the world. The company is planning to reshape entertainment delivery during the lockdown and, eventually, post COVID-19. The company is planning to promote VR concerts and other VR entertainment solutions to entertain people. Such initiatives are expected to give a new dimension to the VR business and boost the growth of the market.

Restraint: Display latency and energy consumption affect overall performance of VR devices

The prime function of VR-enabled devices is to generate images from a dynamic or a static source. Latency can be defined as any delay that increases the real or perceived response time compared with the required response time. Certain factors, such as an imbalance in data processing speed between the microprocessor and input or output devices, can cause latency in VR applications. Users perceive the quality of the device on the basis of image quality it displays. A delay in the projection degrades the overall quality of VR-enabled devices.

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There will be a deviation of location from the exact position if there is an issue in the measurement of the viewpoint. Thus, the VR system requires a minimal latency to maintain the virtual entity at a stable position. The virtual object should not delay over 15 milliseconds while adapting to a new situation as it causes variation in the position of objects.

Energy consumption is another problem in VR applications. Consumers, especially in the gaming sector, require gadgets with long battery life. Sensors and other network interfaces also consume energy. Due to these complications, VR systems cannot be operated for a long duration.

At present, the impact of this restraint is medium; however, it is expected to be low over the next 3–4 years.

Opportunity: Use of VR in aerospace & defense for training and simulation

The use of VR in aerospace & defense would help users, especially for training and simulation purposes. The use of VR would help in experiential training with data-driven applications and in real-time. This helps improve the efficiency of accurate skills transfer and also increases knowledge retention. VR is used to train the ground crew for pre-flight checks and ground crew procedures before the take-off. VR can be used to inspect the airplane before take-off, thereby ensuring more safety.

Challenge:  Developing user-friendly VR systems

VR technology suppliers and developers face the challenge of developing user-friendly VR and tracking systems. A user-friendly virtual environment allows a user to easily navigate and interact with objects in the virtual environment. The VR system is a combination of hardware and software components. VR devices track a user’s movements through different sensors and array them on the virtual display. The development of VR software and virtual content is a challenging task for developers as the virtual content displayed must satisfy the user’s needs. This would ensure easy acceptance and increase the penetration of VR devices among the masses.