Market Research Report
Virtual Reality Market - Forecasts from 2021 to 2026
|Virtual Reality Market - Forecasts from 2021 to 2026|
Published: August 25, 2021
Knowledge Sourcing Intelligence
Content info: 119 Pages
Delivery time: 1-2 business days
The global virtual reality market is expected to grow at a compound annual growth rate of 48.38% over the forecast period to reach a market size of US$179.399 billion in 2026, from US$11.329 billion in 2019.
Increased use of virtual reality in the defense sector, growing use of head-mounted displays (HMD) in the entertainment and gaming sector along declining prices of displays and hardware components are some of the key factors propelling the market. Other driving factors complementing the growth of the virtual reality market are the higher interest of large technology companies in virtual reality and the easy availability of head-mounted displays leading to an improving adoption rate of these solutions. Other end-user industries apart from the traditional ones are also beginning to experiment with VR solutions leading to increased demand for these solutions. However, the major challenges faced by the virtual reality market are display latency, energy consumption, and health concerns.
The market is expected to surge in the coming years, due to the increasing usage of virtual reality in the defense sector, worldwide. From the modernization of tactical training for training personnel or soldiers, or digital training for maintaining aircraft, the demand for virtual reality solutions is expected to surge at an exponential rate, in the coming years. Militaries and governments, worldwide, have been investing resources and capital to integrate VR in their military and defense training processes. For instance, the United States Army Fort Bragg N.C has been developing a major realistic training program to enable and allow their officers to prepare for novel missions. In Norway, there are being trials that are expected to be scheduled to test how virtual reality can help train soldiers and army personnel to drive tanks. Major companies have been making significant developments in the market, in the past few years. For instance, Tecknorove Systems Pvt Ltd., one of the key players in the market, has been providing Virtual Reality solutions for the military and defense sectors. The company's team has been developing immersive and bespoke scalable VR applications that will enhance the quality of personnel training programs.
The market is expected to surge in the coming years, due to the increasing demand for virtual reality solutions in the education sector, worldwide. 360VR, a type of VR, is being commonly used in education. With this VR, real-world locations are caught and captured with high-profile equipment and cameras. Virtual reality can enhance education by providing and enabling students with immersive and memorable experiences, within a classroom. VR has been accessible to all students and can be easily controlled and monitored by teachers. There have been several developments in the market in the past few years. In August 2021, the Department of Science and Technology at the University of Johannesburg had announced the launch of a novel virtual reality teaching and research hub, intending to surge the development and innovation in the respective field and educate and enhance the next generation of practitioners and researchers. In August 2021, the Indian Institute of Technology Madras had announced the launch of a consortium for VR, known as the "Consortium for VR/AR/MR Engineering Mission in India."
The market is expected to surge in the coming years, due to the increasing usage of virtual reality in the gaming sector, globally. The rising demand for 3D experience, real-time interaction, and creative content in the gaming industry has the potential to accelerate the demand for virtual reality solutions. Several companies have been making significant developments in the market. For instance, Facebook announced over 60 games that are available for the Oculus Quest and Quest 2. The company had bought Oculus, a VR headset developer, for US$2 billion in the year 2014. These developments are expected to enhance the market growth, in the coming years. Sony has also been providing virtual reality solutions and devices for the gaming sector. The company's PS VR, when connected to its PS5 console, provides an immersive experience for VR-supported games.
In July 2021, GBL Systems and Samsung announced the deployment of novel 5G testbeds for military experiments with VR training applications to the U.S. Army bases. Pentagon had launched an initiative to award US$600 million in contracts to test 5G, VR, and AR solutions at multiple military bases.
In August 2021, Golden Traingle Ventures Inc. announced the execution of a novel five-year exclusive partnership agreement with a major VR technology company, Positron. The company under this agreement would develop an immersive platform for VR events and live streaming concerts. Golden Triangle Ventures entertainment division, Lavish Entertainment, would enhance and elevate concerts by offering audiences to join on VR headsets and other devices.