Virtual Reality Market Size, Share, Industry Report, Revenue Trends and Growth Drivers 2025

Posted by Steve Stark on September 29th, 2023

The virtual reality market size is projected to reach USD 20.9 billion by 2025, at a CAGR of 27.9% during the forecast period. Virtual reality (VR) technology provides the user a virtual environment with the help of computer hardware and software.

It provides a fully immersive environment in which the user can interact with objects similar to those in the real world. The VR technology works on components such as gesture recognition systems, sensors, and embedded electronic components. The processor helps to execute the input and gives an output by which the user can perceive that the object is a part of the environment. Virtual reality technology has several uses, especially in the military, consumer, training, education, and retail sectors.

Based on device type, the virtual reality market has been segmented into head-mounted displays, gesture-tracking devices, and projectors and display walls. The market for gesture-tracking devices is expected to witness the highest growth in the virtual reality market.

Gesture-tracking devices have been an integral part mainly because these are used for consumer applications. Gaming with the use of gesture-tracking devices provides enhanced experience of the virtual world to the users. The gesture-tracking devices can be used prominently for medical training and simulation, and also in therapy. Gesture-tracking devices are usually combined with head-mounted displays and other fully immersive devices for active interaction with the virtual environment.

Based on applications, healthcare segment of VR market accounted for highest CAGR

By applications, the virtual reality market has been segmented into aerospace & defense, healthcare, consumer, commercial, enterprise (manufacturing), and others (automotive, real estate, and geospatial mining). Virtual reality technology is mainly used in training and educating medical students and new practitioners.

It is also used for the treatment of phobia and for surgeries. Virtual reality technology allows surgeons to perform surgery in a risk-free environment. A virtual reality surgery provides safety as there is no risk to the patient, and surgeons can get feedback as soon as they are done with the surgery. This helps healthcare professionals gain experience and knowledge in their respective fields. Virtual robotic surgery is a new development in the area of virtual reality medicines.

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Based on offering, VR market for hardware segment accounted for highest CAGR

By offering, the virtual reality market has been segmented into hardware and software. Due to the increasing demand for hardware devices, the VR market has witnessed high growth.

The VR content creation market is expected to witness a surge in its growth to bring in the inflow of the content to fulfill the requirements of different applications using virtual reality HMDs. This will be a massive boost to the high growth of the virtual reality market as a whole.

The increased need for content in the virtual reality market will also pave the path for many content creation start-ups. The use of virtual reality for commercial purposes to attract customers has been on the rise with business owners using virtual reality headsets to build their sales.