Virtual Reality Headset Market Size Worth $55.69 Billion By 2028
Virtual Reality Headset Industry Overview
The global virtual reality headset market size is anticipated to reach USD 55.69 billion by 2028, registering an estimated CAGR of 28.2% from 2021 to 2028, according to a new report by Grand View Research, Inc. The continuous advancements in virtual reality (VR) technology and the rapid penetration of smartphones are expected to drive market growth. The rising product adoption in the education and healthcare sectors, mainly for teaching & training purposes, is further contributing to the growth of the market.
The increasing product usage for different applications across industries, especially in the wake of the Covid-19 pandemic, is also driving the market growth. The deployment of these devices is expected to increase as temporary lockdowns imposed by governments have impelled people to shift to virtual platforms for various services. The demand for head-mounted displays witnessed a surge in demand during the pandemic.
Moreover, the innovations in 3D technology and the integration of Artificial Intelligence (AI) with virtual reality are providing growth opportunities to the market, particularly in the manufacturing and automation industries. Virtual reality technology enhances the efficiency of product development while helping in minimizing faults in the system. The product usage for training purposes on the production line and for remotely conducting maintenance and repair tasks provides effective control over the production cost. Businesses are embracing state-of-the-art devices with the latest features, such as sensors for motion tracking, eye tracking, gesture input, spatial sound, and voice support.
Virtual Reality Headset Market Segmentation
Grand View Research has segmented the global virtual reality headset market on the basis of end-device, product type, application, and region:
Based on the End-device Insights, the market is segmented into Low-end Device, Mid-range Device, and High-end Device.
- The high-end device segment accounted for the largest revenue share of more than 58% in 2020 and is expected to retain its dominance over the forecast period. The advanced features of these devices, including high-quality visual effects, self-tracking, and elevated performance, are expected to drive the segment growth.
- The low-end device segment is anticipated to exhibit the highest CAGR of around 35.0% from 2021 to 2028. This growth can be attributed to the benefits of these devices, such as lower costs, considerable immersive experience, and high propulsion.
Based on the Product Type Insights, the market is segmented into Standalone, Smartphone-enabled, and Standalone PC-connected.
- The standalone product type segment accounted for the largest revenue share of over 43% in 2020 and is anticipated to retain its dominance from 2021 to 2028. A standalone device offers a high-quality experience at an affordable price.
- The smartphone-enabled product type segment is expected to exhibit the second-fastest CAGR of over 30.7% during the forecast period. The segment growth can be attributed to the rising penetration of advanced VR-enabled smartphones with the amalgamation of 3D technology and AI.
Based on the Application Insights, the market is segmented into Gaming, Healthcare, Media & Entertainment, Manufacturing, Retail, Education, Telecommunications, and Others.
- The gaming segment accounted for the largest revenue share of over 30.0% in 2020 and is anticipated to dominate the global VR headset market over the forecast period. Gamers have an elevated average price outlay for transforming their gaming consoles or desktops compared to people who do not indulge in gaming.
- The education segment is anticipated to register the fastest CAGR from 2021 to 2028. This can be attributed to the increased product deployment in educational institutions and medical schools. Moreover, the advancements in the healthcare sector due to VR technology, along with favorable government regulations for facility enrichment, are promoting the segment growth.
VR Headset Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Leading companies are constantly investing in R&D for the development of cost-effective devices that offer high quality and can be utilized by various end-use industries. Oculus Rift, Oculus Rift S, Oculus Quest, Oculus Go, HTC Vive, HTC Vive Pro Eye, HTC Focus, HTC Plus, HTC Cosmos, and Sony’s PSVR are some of the VR headsets that are prominent among several industry sectors. The significant expansion of the market is expected to be supported by gaming consoles from Nintendo, SEGA, and Atari, Inc., among others. Unceasing investments in the research & development of VR technology by industry participants are expected to boost the market growth over the forecast period.
The high revenues from the gaming sector guided the VR device manufacturers to capitalize on the VR headset segment by offering related software, hardware, and content services. Many businesses have been adopting several innovative technologies, such as Blu-ray, 4K, motion sensing, self-tracking, HD quality video, and Six Degrees of Freedom (6DoF), to cater to the changing customer demands. Moreover, M&A and partnerships with domestic firms are among the foremost stratagems implemented by the global industry players. For instance, in May 2020, HP Development Company, L.P., a technology firm, unveiled the new Reverb G2 VR headset, built in partnership with Microsoft Corporation and Valve. Some prominent players in the global VR headset market include:
- Carl Zeiss AG
- Facebook Technologies, LLC (Oculus)
- Google LLC
- HTC Corporation
- LG Electronics
- Microsoft
- Razer Inc.
- Samsung Electronics Co., Ltd.
- Sony Corporation
Order a free sample PDF of the VR Headset Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
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Email: sales@grandviewresearch.com
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