The virtual reality market is projected to grow with a CAGR of 28.3% and is projected to reach USD 4 billion by 2029.
The virtual reality market is projected to grow at a promising pace on account of its rising use in business organizations and gaming and media devices. The COVID-19 pandemic has significantly surged the use of VR and entertainment media platforms.
Virtual reality is gaining significant popularity among the millennials, and around 75% of the population is categorized as a youth, further driving the market growth. In the U.S. and U.K., about 90% of the population uses VR in day-to-day tasks. By the end of 2023, the VR gaming segment is anticipated to reach USD 280 billion. Apart from this, VR is extensively used by data-driven organizations and media planners to expand their consumer reach.
As per Delloitte, nearly 88% of the mid-sized organizations are using VR. The AR market, on the other hand, is projected to generate USD 2 billion by 2022. In line with this, leading market players are actively working to develop games that work on VR. For instance, for instance, Pokemon Go, a VR game, was downloaded a billion times and is used by 45 million users daily. The recent COVID-19 outbreak has significantly surged the use of VR and the hours spent by gamers. However, the disruption in the supply chain has severely impacted the market growth.
Head-mounted displays hold the largest market share of about 60%, as it offers an immersive and realistic gaming experience.
The U.S. spearheads North America’s virtual reality market as the country is backed by the presence of leading market players and rapid technological advancements. NEXT/NOW with 65% of service focus towards VR development Groove Jones with more than 50% of service focus towards Virtual Reality business and CemtrexLabs with more than 40% of the focus on the Virtual Reality services from their total capability are improving the dominance of North America in the virtual reality market. Also, high number of virtual gaming enthusiast, adoption of VR within a diverse section of the audience also propelling the market for Virtual Reality in the region
Asia-Pacific’s virtual reality market is anticipated to grow at a significant pace on account of governmental support in the countries of India and China. Officials from the Jiangxi region are planning to raise funds of about USD 460 million to help China-based companies operating in the development of Virtual Reality technology. Moreover, the past conferences about the future of VR technology held at Guangdong province unveiled that China alone contributed about USD 1.15 billion in virtual reality market. Additionally, rising awareness about VR among the consumers provides an impetus to the regional market growth.
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