The VR industry is just starting to spread, and the predictions for its upcoming growth exceed everyone’s expectations. All those sci-fi movies are now becoming the near future. If you are a passionate gamer, VR will be your best friend.
Virtual reality was first proposed by Jaron Lanier in the mid-1980s and has been used in various applications such as video gaming, cinema, education, and medical research. Virtual reality has been described as a “contemporary computer-generated environment, which can be explored and interacted with by the user.” The first virtual reality headset, the HTC Vive, was released in April 2016. Virtual reality’s popularity will likely grow as more people become familiar with the technology and explore its applications. To understand VR and its popularity, we have found some interesting stats and facts that can be read in the following article.
VR Industry Statistics
The VR gaming market is predicted to reach $1.8 billion in revenue by the end of 2022.
(Source: Newzoo)
The predicted number was higher by $1.4 billion than the total revenue in 2021. As the industry continues to grow, so too will its potential applications. Newzoo predicts that the VR revenue will increase by an estimated $3.2 billion by 2024. The industry will continue to expand, with more developers and companies entering the market to take advantage of virtual reality opportunities.
E-commerce businesses are slowly adopting VR; analysts confirm an increase of 17% in the conversion rate for online shopping after the implementation of VR.
(Source: Swagsoft)
VR technology also provides the opportunity to assess the size of the product, its color, and other features without leaving the house. In addition, it allows customers to eliminate the problem of returning goods if the product fails to meet their expectations. This significantly reduces the costs and risks associated with making a purchase.
By 2025, a training program in VR will be done for employees on labor protection and industrial safety, meant to reduce risks by 30%.
(Source: Swagsoft)
This training will help ensure a safe work environment and reduce the risk of workplace accidents. It will also help workers to stay informed about the latest safety guidelines and regulations. VR training will also allow employees to understand better the risks associated with different tasks and how to minimize them. Additionally, this training will help the company create a culture of safety and compliance.
The adoption and application of VR in engineering can decrease model design time by 10% and construction time by 7%.
(Source: Swagsoft)
VR in engineering can also improve communication between parties involved in the project, allowing for a more efficient and effective workflow. Additionally, the implementation of VR in engineering can reduce the amount of physical prototyping needed for a project, resulting in cost savings. Furthermore, using VR in engineering can help reduce errors in the design process, improving the overall accuracy of the project.
The worldwide AR/VR market size in 2022 is estimated to reach $37 billion by the end of the year.
(Source: Markets and Markets)
The prediction for the AR/VR market size for 2027 is $114.5 billion. This is predicted from 2022-2027, a five-year forecast period with a growth rate of 25.3%.
The worldwide VR market size was valued at $21.83 billion in 2021 and is projected to reach $28.42 billion by 2022.
(Source: Grand View Research)
As technology has become more accessible and consumer-friendly, the types of experiences that can be had in the VR space have also expanded, with everything from social media platforms to educational games. This has opened up the market to a broader range of players, from casual users to hardcore gamers.
The North America VR market size was estimated at $3.58 billion in 2021.
(Source: Fortune Business Insights)
The year before, the North American market size was $2.52 billion, so in 2021 there was an increase of $1.06 billion. We can see steady growth by year, which will only widen in 2022.
The VR hardware market size is estimated at $7.6 billion in 2022.
(Source: Statista)
The growing demand for hardware, such as gaming consoles, mouse, and keyboards, is expected to drive the segment growth during the forecast period. Consoles are used to play games on and usually come with an input device and an output device. Input devices, such as keyboards, mice, touchpads, and game controllers, are primarily used by gamers to interact with their games. Output devices, such as monitors, TVs, and projectors, display the game visuals.
The VR gaming market size is estimated at 1.9 billion in 2022.
(Source: Statista)
The increased development of the VR gaming industry is expected to create a wide range of business opportunities, as well as new sources of revenue in both the enterprise and consumer segments.
The VR consumer hardware and software market revenue is predicted to reach more than $5 billion by 2023.
(Source: Statista)
The set number for the total revenue of the VR consumer market for 2020 was $2.6 billion. That would mean that the market will grow more than $2.4 billion in revenue in three years.
The Asia Pacific region is the most significant revenue contributor to the VR market industry for 2021, contributing more than 40% of the total market revenue share.
(Source: Grand View Research)
According to Grand View Research, China has made much progress by being a distributor of HMDs and other VR hardware devices. By introducing commercial 5G services, Japan has enabled telecommunication companies to increasingly use AR/VR technology to give customers a more immersive and engaging experience.
The head-mounted display device segment, with more than 60% of the total VR market industry revenue in 2021, is expected to govern the market industry for the forecasted period of 2022-2030.
(Source: Grand View Research)
The increasing demand for HMD devices in various applications such as virtual reality, augmented reality, and medical imaging has driven the segment’s growth. The development of advanced HMD devices with improved display quality and resolution, along with the increasing use of HMD devices for applications such as military and industrial training, are expected to drive the segment further.
Virtual Reality Market Growth
The VR market is predicted to reach $35.75 billion by 2030.
(Source: Market Research Future)
The gaming industry will continue to be the most significant growth driver in the AR/VR market. Augmented reality will also be adopted in various industries, such as automotive, aviation, healthcare, retail, hospitality, and education. In addition, the increasing use of intelligent devices and the internet of things will also drive growth in the AR/VR market.
The worldwide VR market is forecasted to grow at 37.4% CAGR for 2020-2027.
(Source: Zlidein)
The gaming segment is projected to account for the largest share of the VR market, followed by the enterprise and industrial segments. This is due to the increasing popularity of VR gaming applications in these segments. The increasing adoption of VR in the travel and tourism sector is also expected to fuel the growth of the gaming segment.
The United States VR market is projected to grow at a CAGR of 38.05% from 2020 to 2027.
(Source: Zlidein)
The merger and acquisition activity in the US has seen a marked uptick in recent years due to the region’s expansive and mature technology markets. Companies are looking for ways to increase their market share and expand their reach. This has led to many large companies acquiring smaller startups to gain access to cutting-edge technologies and talented personnel.
The Europe VR market is projected to grow at a CAGR of 16.6% over 2022-2030.
(Source: Grand View Research)
The market is also expected to witness growth in Europe due to rising investments and the presence of significant players in these countries. Additionally, tightening regulations and increasing awareness of the potential applications of AR/VR technologies are further driving the market’s growth.
Best VR Companies
Here is the list of popular VR companies:
| Company | Industry | Location | Number of Employees | Revenue |
| The NineHertz | App Development | Atlanta, USA | 171 | $41 Million |
| HQSoftware | App Development | USA, EU, Georgia | 54 | $11 Million |
| iTechArt | Manufacturing Technology | New York, USA | 1,267 | $49 Million |
| Innowise | Software development | Florida, USA | 40 | $13 Million |
| Oculus | Manufacturing | California, USA | 267 | $58 Million |
| HTC | Manufacturing Technology | North Conway, USA | 195 | $91 Million |
| Samsung | Manufacturing Technology | Suwon, Korea | 266,673 | $214 Billion |
| Microsoft | Manufacturing Technology | Washington, USA | 221,000 | $203 Billion |
| Unity | Development | California, USA | 5,245 | $1 Billion |
| VironIT | Development | New York, USA | 77 | $15 Million |
Meta’s Oculus is the leader in AR/VR headset shipments, with a 66% market share.
(Source: Statista, Counterpoint Research)
In 2014, Meta Inc., now known as Facebook Inc., embarked on its journey in the virtual reality world through the acquisition of VR headset maker Oculus. Following the launch of its newest headset, the Oculus Quest 2, the company has gained an increasing portion of the market, which was formerly held by Sony and its PlayStation VR headsets.
Global AR/VR Headsets Market Share
| Brand | Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 |
| Meta (Oculus) | 29% | 74% | 75% | 67% | 73% | 80% | 77% | 66% |
| Pico | 11% | 3% | 3% | 6% | 6% | 5% | 8% | 11% |
| DPVR | 8% | 4% | 6% | 9% | 10% | 8% | 7% | 9% |
| Others | 52% | 19% | 16% | 18% | 11% | 7% | 8% | 14% |
How Many People Use VR?
There are 171 million VR users globally.
(Source: Zippia)
The VR market’s growth is driven by many factors, including the increasing affordability of VR devices, the rise of 5G networks, and the growing popularity of gaming and entertainment applications.
There are 64 million VR users in the US, with 32.7 million non-headset VR users and 31.3 million VR headset users.
(Source: Zippia)
In the table, data for VR users and VR headset users are presented by year. A giant leap in the number of VR users from 2017-2018, when the number increased to 7.5 million in just one year.
| Year | VR Users (Non-headset) | VR Headset Users |
| 2017 | 11.5 million | 11 million |
| 2018 | 19 million | 15.6 million |
| 2019 | 22.3 million | 20.8 million |
| 2020 | 28 million | 22.2 million |
| 2021 | 30.6 million | 28.3 million |
| 2022 | 32.7 million | 31.3 million |
| 2023 | 33.2 million | 32.7 million |
VR Users Statistics
The YouTube VR Channel has 3.41 million subscribers currently.
(Source: YouTube)
The YouTube Virtual Reality channel is a hub for all things virtual reality. From news and reviews to tutorials and games, this channel is dedicated to helping you get the most out of your VR experience.
According to the VR Usage & Consumer Attitudes, 19% of US adult respondents said they had tried VR.
(Source: Ar Insider)
The previous year in the same research, the number of people in the US who have used VR was 16%. So that is good news because more and more people are trying the experience of VR.
31% of respondents of the VR Usage & Consumer Attitudes survey answered that they use VR at least once a month.
(Source: Ar Insider)
This indicates VR’s potential as a tool for entertainment and education.
According to a survey from Artillery IQ, 29% of the US respondents that use VR are men, and 20% are women.
(Source: Artillery IQ)
According to these demographics, men are more likely to use VR.
45% of Gen-Z are using Virtual Reality.
(Source: Artillery IQ)
In the table, data is presented for VR users by age in the United States. The largest group that utilizes VR is the youngest individuals, from 10-25 years.
| Age | Percentage of users | Age in years in 2022 |
| Gen-Z | 45% | 10 – 25 |
| Gen – Y | 38% | 26 – 41 |
| Gen – X | 18% | 42 – 57 |
| Boomers | 6% | 58 – 67 |
VR Trends
The retail sector will invest $7.3 Billion in VR by 2024.
(Source: Queppelin)
Virtual Reality (VR) technology has the potential to revolutionize the retail industry by providing an immersive shopping experience for customers and allowing them to explore products virtually before making a purchase. It also allows retailers to create customized experiences tailored to specific customers and their preferences. This significant investment in the retail sector, expected by 2024, could significantly impact the industry.
$5.9 billion is the investment the Manufacturing industry will provide in VR technologies by 2024.
(Source: Queppelin)
This investment is expected to drive innovation and efficiency in the manufacturing sector, enabling companies to reduce costs, improve efficiency, and develop new products and services. VR technology is expected to be used in training, design, product development, and production areas.
Shipments of VR and AR devices are predicted to increase more than 6 times globally by 2026.
(Source: Insider Intelligence)
This new trend of more considerable demand for VR/AR devices is expected to increase six times more in four years starting this year.
Below is the table presenting data for the regular shipments of VR/AR devices globally from 2022-2026.
| Year | Shipments of VR/AR Devices in millions |
| 2022 | 14.3 |
| 2023 | 23.4 |
| 2024 | 41.3 |
| 2025 | 63.1 |
| 2026 | 87.7 |
65% of consumers said they were interested in exploring new places virtually.
(Source: Academy of Fanimatedart)
VR offers many options; one of the new trends that have awakened is the desire of consumers to explore new places. As many people can only afford a few worldwide adventures, the VR opportunity can offer them exploration.
Conclusion
The increasing demand for immersive gaming and entertainment experiences mainly drives the Virtual Reality market. This has resulted in producing numerous hardware and software solutions designed to provide users with a realistic and interactive environment. Additionally, the increasing use of Virtual Reality in specific professional fields such as healthcare and education plays a significant role in the market’s growth.
The market is further bolstered by the growing trend of big companies investing heavily in the research and development of Virtual Reality technology. Furthermore, the increasing availability of more affordable VR devices is also expected to drive market growth. On the other hand, the high cost of the hardware components is restraining the market from achieving its full potential.
Furthermore, the emergence of 5G technology is expected to open up new opportunities for the VR market soon. The high speed, low latency, and reliability of 5G networks will enable users to stream high-quality virtual reality content seamlessly. This will, in turn, drive the adoption of VR devices in the coming years.
FAQ’s
Is VR still growing in 2023?
The VR industry’s growth is driven by the increasing popularity of virtual reality (VR) games. The report from Newzoo forecasts that the VR games market will reach $1.8 billion in revenue by 2022. This is up from $1.2 billion in revenue in 2018. One of the main drivers of this growth is the increasing popularity of VR games. In 2018, more than 1.2 million VR games were available on the market. This number is projected to grow to more than 5 million VR games by 2022. Another key factor driving the growth in the VR games market is the increasing availability of high-quality headsets. In 2018, more than 1,000 VR headsets were available on the market. This number is projected to grow to more than 5 million by 2022.
The report also forecasts that the VR industry will experience slower growth in the Asia-Pacific region. This is due to the high cost of VR headsets in this region. Asia-Pacific is expected to account for only $220 million of the total VR games revenue by 2022.
Is virtual reality business profitable?
The VR business is profitable.
The global virtual reality (VR) market is projected to reach USD 5.5 billion by 2025, growing at a CAGR of 37.4% during the forecast period.
The market is witnessing advances in head-mounted displays (HMDs) and consumer enthusiasm for VR, which is expected to drive market growth. North America is expected to be the largest regional VR market, followed by Asia-Pacific. The VR market is also witnessing a growing adoption among enterprise and government organizations.
Some major players in the VR market include Facebook, Sony, HTC, Samsung, and Oculus.
It is essential to keep in mind that the market can be volatile at times, so staying up to date with market trends and news and having a well-rounded understanding of the industry before investing. Additionally, it is crucial to have sufficient capital to support any losses.
