Virtual reality - Real income

VR market

The global VR market size had a valuation of $15,81 billion in 2020. It is also bound to rise at a CAGR of 18,0% from 2021 to 2028. The key factor of its success is the combination of availability and affordability. The VR devices are launched in China and India which helped make them more affordable and stimulated their adoption all over the world.

What is VR

Virtual reality is a digital space with scenes and objects that appear to be real. The technology includes headsets, gloves, and bodysuits. VR allows experiencing full immersion into the virtual world. However, it can be used not only for gaming purposes. VR is getting more popular to use it for training mechanics, engineers, pilots, soldiers, and technicians. Therefore, VR technology is getting extremely sought after and is about to conquer the real world.

Comprehensive usage

Providing numerous functions, VR is getting very popular with various industries. For example, in terms of the automotive industry, VR enables engineers to experiment with the designs and structure of a vehicle before making a costly prototype. Besides, VR can be helpful even when it comes to medicine. Exposure therapy helps patients to cope with mental issues. In addition, virtual reality gives tourists the possibility to go sightseeing in whatever place they wish. This may include visiting hotels, restaurants, and attractions via virtual reality. Undoubtedly, such possibilities stimulate VR market growth.

Furthermore, virtual reality seized the entertainment and sports fields. Parks, theaters, gaming are going to be integrated. For example, Europa Park in Germany has implemented rollercoasters based on VR technology.

Covid boost

The coronavirus pandemic considerably affected different industries. Lockdowns all over the world caused a severe crisis of physical stores, cafes, shopping malls, and other public places. Though the virtual reality field had a surge in demand since other companies needed to sustain their business virtually. Moreover, most world economies started to develop healthcare infrastructure. For example, China has built an emergency hospital in just 10 days to treat COVID-19 patients. Thus, the covid outbreak greatly boosted VR growth.

The coronavirus is bound to maintain the VR market development further. The focus of major players in the market is raising the sale. For instance, Sony’s VR technology possesses some of the largest gaming, movie, and music companies in the world. Sony is changing the entertainment delivery both dusting and post lockdown. The company is also intended to promote VR concerts and other sorts of entertainment.

VR devices

The Head-Mounted Display (HMD) was valued at the largest revenue share of 60,0% in 2020. Its increasing necessity in enterprise contributes to the segment growth.

Tracking device (GTD) is expected to reach the fastest growth rate of 20,0% until 2028. It resulted in a positive shift since the technology enables us to experience even more ‘real’ feelings.

The gaming industry is one of the most profitable industries in this market in customer application. The HMD market is going to reach huge growth in the next 5–6 years.

Consumer application

The consumer sector, which includes gaming and entertainment applications, held the largest share because of its high penetration in the gaming industry. The immersive technology provided with the use of VR in gaming and entertainment brings a user into a new virtual world.

Collaborations

The current trend of VR drives the industry growth. The major market players seek to collaborate with technology start-ups in order to take advantage of their relevance. For instance, Facebook Technologies, LLC acquired Ready at Dawn, a VR video game. Giant companies, such as Microsoft and Samsung, are intended to upgrade VR headsets to bring VR into the mainstream. In March 2020, Microsoft collaborated with HP and Valve to release a new VR headset that provides a more exciting and comfortable virtual reality to the users.