The Global Market for Virtual Reality Software and Hardware is Projected to Reach US$22.4 Billion by 2020

The Coming Age of Digital Immersion to Drive Robust Growth in the Virtual Reality Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size, and demand forecasts on the global Virtual Reality market. The global market for Virtual Reality Software and Hardware is projected to reach US$22.4 billion by 2020, driven by the coming age of digital immersion, and the opening up of new application possibilities in industrial, commercial, healthcare and consumer markets.   

Ever since the development of multimedia technologies such as computers and the Internet, there has been increased interest in creating a more realistic experience of the virtual world. Modern consumers of digital media are no longer passive users of mass media. The world is approaching an era where digital participation is deemed more important than just watching. This new concept of “deep media” immersion is throwing the spotlight on virtual reality (VR). Immersion is defined as a state of emotional, sensory, cognitive and physical involvement in the digital environment.  Immersion provides the ability to live the experience which in turn delivers satisfaction that comes from people playing a central role as themselves. In VR, personified fantasy brings in greater awareness of self. Society’s obsession with digital immersion is exemplified by the gaming industry undying efforts to make the gaming experience immersive and hyper real. Driven by technological leaps in animation, digital displays, artificial intelligence, haptics and simulation, gaming technologies have come a long way from making gamers feel a part to the game to allowing them to actually live the experience. The ability to experience reality in alternate digital settings promises to unleash numerous real world benefits in a multitude of non-entertainment sectors in the coming years. Right from revitalizing the economy, industries and businesses, virtual reality has the potential to disruptively change the world as we know it.

The most immediate real world benefit and change promised by VR is the creation of collaborative virtual environments and the massive benefits for the enterprise and education sectors. Distributed collaborative networks will encourage the rise of virtual enterprises and research laboratories knit tightly together by virtual collaborating entities. Another immediate application scenario is in the manufacturing sector where testing of materials, compositions, products and processes can be carried out even without physical production, thus leading to cost benefits, resource conservation and more customized and efficient manufacturing. The healthcare education and training sector is also expected to witness immediate change with VR enabling physicians to be trained through surgery simulation and skills training. Exposure to digital technology is changing the way the brain responds to stimuli. Mental reflexes, habits, information processing capabilities are all changing in the digital world and VR in this regard is emerging as the only logical way to interact and learn. In the retail and business sector, the ability for marketers to take prospective consumers on a multisensory journey taps into the psychological fact that emotions and feelings play a crucial role in the human decision making process. Given the changing consumer behavior in favor of digital immersion, companies and businesses are feeling the need to create an immersive digital environment where consumers are made to feel like a part of the simulated world. Consumers can test purchases and experience products even before purchase. For instance, furniture can be virtually experienced in homes, while cars and bikes can be driven under all driving conditions and their handling performance experienced before purchase. VR is therefore the advertising industry’s next big technology platform.

As stated by the new market research report on Virtual Reality, the United States represents the largest market worldwide.  Asia-Pacific ranks as the fastest growing regional market with an impressive CAGR of 108.1% over the analysis period. The growth in the region is led by increased adoption of smartphone based VR games supported by trends such as digitalizing lifestyles, availability of low cost smartphones, commercialization of VR head mounted displays, and expanding base of affluent middle class population demanding a more engaging virtual experience of the digital world.     

Major players covered in the market include Avegant Corp., Barco N.V, CyberGlove Systems LLC, DeepStream VR, EON Reality Inc., Google Inc., Kopin Corporation, Inc.,  Leap Motion, Inc.,  Oculus VR, LLC, Qualcomm, Inc., Rockwell Collins, Samsung Electronics, Sensics, Inc.,

Sixense Entertainment, Inc., Sony Corporation, Total Immersion, Virtalis Limited, VirtaMed AG, Vuzix Corporation, and WorldViz

The research report titled “Virtual Reality”: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe, Asia-Pacific and Rest of World. The global market is further analyzed by the following segments – Consumer (Software and Hardware) and Commercial (Software and Hardware).

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