Virtual Reality Headset Market Report
Virtual Reality Headset Market by End-Device (Low-end Device, Mid-range Device, and High-end Device), Product Type (Standalone, Smartphone-enabled, and Standalone PC-connected), Application (Gaming, Healthcare, Media & Entertainment, Manufacturing, Retail, Education, and Telecommunications), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Virtual Reality Headset Market Overview
Virtual reality (VR) headsets are progressive devices that engage users in virtual environments, presenting a special and interactive experience. These headsets make use of advanced technologies like high-resolution displays, movement tracking sensors, and spatial audio to create a feel of presence and realism. VR headsets offer a wide range of applications, together with gaming, entertainment, education, training, and digital tourism. They are likely to revolutionize a number of industries through enabling customers to explore virtual worlds, engage with digital objects, and have interact in simulated experiences. The virtual reality headset market has witnessed a large boom in the last few years, owing to the technological advancements and the availability of compelling VR content.
Global Virtual Reality Headset Market Analysis
The global virtual reality headset market size was $7,815.50 million in 2022 and is predicted to grow at a CAGR of 29.1%, by generating a revenue of $85,364.54 million by 2032.
COVID-19 Impact on Global Virtual Reality Headset Market
The COVID-19 pandemic has had a moderate impact on the global virtual reality headset market. On one hand, the pandemic has led to improved demand for VR headsets as tech-savvy people wanted to experience fun and enjoyment while they were in a lock-down situation. The demand for personal headsets propelled the market growth.
On the other hand, the pandemic additionally posed challenges for the virtual reality headset market. Supply chain disruptions, manufacturing delays, and logistics problems affected the manufacturing and availability of VR headsets. Additionally, the reason for the downfall was the shutdown of the game stations and virtual reality movie hubs because of the imposed lockdown by the government to stop the spread of infection.
Increasing Demand for Gaming Consoles to Drive the Market Growth
The demand for gaming consoles is rising. VR technology has extensive application in the retail and manufacturing sectors. Increasing content material availability is a necessary factor that is riding the boom of the Virtual Reality (VR) headset market. As VR science continues to advance, there has been a parallel boom in the creation and availability of numerous and compelling VR content. This includes a wide variety of applications, such as immersive gaming experiences, interactive films and documentaries, instructional simulations, virtual tours, and education modules throughout a number of industries. In addition, the popularity of VR headsets is rising amongst the younger generation in both developed as well as developing countries. Besides, the growing usage of VR headsets in training methods, corporate environments, engineering design process, and for engagement of audiences, such as movies, VR gaming, sports, and others. All these factors are predicted to boost the growth of the global virtual reality headset market during the forecast period.
High Cost to Restrain Market Growth
The high price of VR headsets is a full-size element that restrains the market growth. VR headsets regularly come with a large price tag, particularly those geared up with superior features and technologies. The price consists of now not only the headset itself but additional accessories, such as controllers and monitoring systems, which can further increase the normal expense. The excessive cost acts as a barrier for many conceivable consumers, limiting the massive adoption of VR headsets.
Advancements in Technology to Drive Excellent Opportunities
Advancements in VR technology is the major factor predicted to create massive growth opportunities for the virtual reality headset market during the forecast period. As technology continues to evolve, VR headsets are turning into extra state-of-the-art and capable, offering improved consumer experiences. One key place of advancement is in display technology. Higher display resolutions, such as 4K and beyond, deliver sharper and extra unique visuals, improving the overall immersion in digital environments. Additionally, VR headsets with eye and motion tracking are under development to enhance the user’s virtual reality experience in the upcoming years, which is projected to drive the market’s growth.
Global Virtual Reality Headset Market Share, by End-Device, 2022
The high-end device sub-segment accounted for the highest market share in 2022 and is expected to maintain its dominance over the forecast period. The advanced aspects of these devices include excellent visible effects, self-tracking, and accelerated performance. High-end devices are majorly used in large corporations to provide high-quality service to their clients and employees. These devices are majorly enclosed with superior technologies that offer high resolution and improved involvement to the viewers. Continuous investments in high-end devices by way of major market players, such as HP Inc., Google LLC, and Facebook Technologies LLC, are likely to increase their demand in the upcoming years.
Global Virtual Reality Headset Market Share, by Product Type, 2022
The standalone sub-segment accounted for the largest market share in 2022 and is anticipated to continue witness prominent growth during the forecast period. A standalone device provides a high-quality experience at an economical price. The fundamental feature of these devices is the integration of a range of mechanisms, which include processing control & hardware into a singular system. The market players offer various application-oriented standalone devices with different price ranges and features, which is driving the sub-segment's growth.
Global Virtual Reality Headset Market Share, by Application, 2022
The gaming sub-segment accounted for the highest market share in 2022 and is likely to dominate the global market over the forecast period. Gaming VR headsets are outfitted with superior technologies that can even track eye actions and transmit them to the game for a better experience. This, in turn, is projected to drive the sub-segment growth in the coming years. Gamers have an extended average price outlay for remodeling their desktops or gaming consoles compared to users that are now involved in gaming. This has influenced the firms to capitalize on VR headset games within the affordable price range for gamers.
Global Virtual Reality Headset Market Share, by Region, 2022
The Asia-Pacific virtual reality headset market generated largest revenue in 2022 and is predicted to grow at a high CAGR during the forecast period. The significant growth of the region can be attributed to the accelerated digitalization and digital reality technology developments, especially in the gaming and entertainment sector. China is the biggest market for virtual reality headsets in the region, owing to the advent of 5G and policy support VR development from Chinese government. The key players in the region are extensively utilizing VR technology for various purposes, therefore contributing to the regional market growth. For example, in November 2022, China released their plan related to VR, under which the country is planning to ship over 25 million devices by the end of 2026.
Competitive Scenario in the Global Virtual Reality Headset Market
Product development and collaborations are the common strategies followed by the major market players. Some of the leading virtual reality headset market players are Carl Zeiss AG, Google LLC, Facebook Technologies, LLC (Oculus), HTC Corporation, Microsoft Corporation, LG Electronics, Inc., Razer Inc., Valve Corporation, FOVE, Inc., and HP Inc.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by End-Device
Segmentation by Product Type
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the virtual reality headset market?
A. The size of the virtual reality headset market was over $7,815.50 million in 2022 and is expected to reach up to $85,364.54 million by 2032.
Q2. Which are the major companies in the virtual reality headset market?
A. LG Electronics, Inc., Microsoft Corporation, and Razer Inc. are some of the key players in the global virtual reality headset market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Product development and partnerships are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. Google LLC and HP Inc. are the companies investing more on R&D activities for product development.