According to the new market research report “Virtual Reality Market with COVID-19 Impact Analysis by Offering (Hardware and Software), Technology, Device Type (Head-Mounted Display, Gesture-Tracking Device), Application (Consumer, Commercial, Enterprise, Healthcare) and Geography – Global Forecast to 2025″, published by MarketsandMarkets™, the Virtual Reality Market size is projected to grow from USD 6.1 billion in 2020 to USD 20.9 billion by 2025; it is expected to grow at a CAGR of 27.9% from 2020 to 2025. Increase in demand for hardware devices is the major reason for the growth of the VR market. 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.
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COVID-19 has adversely impacted the supply chain of the VR market
The growth rate of the VR market is likely to witness a significant drop in the first two quarters of 2020, due to the widespread of the coronavirus. It is expected that COVID-19 will adversely impact the supply chain of the VR market as most of the players are based in APAC, which is among the most affected region. Also, in light of the current situation, major VR players are focusing on education, healthcare, and enterprise applications of VR to reduce the loss and recover at a rapid pace.
North America to hold the largest market share in 2019
North America held the major market share in the VR market in 2019. North America would have a slightly lower growth rate than APAC during the forecast period. The adoption rate of AR devices is likely to be high in APAC during the forecast period. The enterprise application in North America would witness a high growth due to the high adoption of new technologies by enterprises. The VR market in North America would witness high growth owing to the use of VR in gaming and entertainment, sports, and enterprise applications. For example, US athletes use VR technology to prepare for the Winter Olympics. The US Ski and Snowboard have been working with a VR training start-up based in California, Strivr. The national governing body uses Strivr’s platform to train their athletes for World Cup competitions and the Olympics.
Strong presence of VR companies in the US likely to drive
Presence of companies such as Google (US). Facebook (US), Microsoft (US), DAQRI (US), and PTC (US) in the region drive the growth of the VR and AR market. The use of VR technology for marketing and promotion campaigns would help the VR market grow faster in the country. The construction sector is among the fastest-growing sectors in the US. It is likely to witness high growth with the use of VR technology.
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VR market for hardware currently leads the virtual reality
The VR market for hardware currently leads the virtual reality market space. Companies such as Oculus, Sony, Samsung, HTC, and Google have been active enough in the VR hardware space, and the availability of VR hardware from these companies has helped in the growth of the VR market for hardware. Currently, virtual reality hardware devices are easily available in the market; however, there would be an increase in the need for content creation for VR hardware in the near future. This would, in turn, drive a higher growth of the virtual reality market for software during the forecast period. The market for VR software is expected to surpass the VR market for hardware by 2025.
Sony (Japan), Samsung Electronics (South Korea), Google (US), Microsoft (US), HTC (Taiwan), Oculus (US), Eon Reality (US), Vuzix (US), CyberGlove Systems (US), Leap Motion (US), Sixense Enterprises (US), Nintendo (Japan), Psious (Spain), Mindmaze (Switzerland), WorldViz (US), Firsthand Technology (US), Virtuix (US), Survios (US), Merge Labs (US), SpaceVR (US), and Virtually Live (Switzerland) are the key players in the virtual reality market.
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