Virtual Reality Headset Market Size

In this blog we present the current market size of the (worldwide) Virtual Reality Headset market, let's see what the expected growth of the market looks like and list the most important VR companies of the moment.

Total market share VR

The global market size of Virtual reality headsets was estimated to reach USD 7.81 billion by 2020 and is expected to grow at a with compound annual growth rate (CAGR) of 28.2% from 2021 to 2028. Extensive adoption of Virtual reality technology (VR) in the military and automotive sectors is driving the market growth. Moreover, the surge in demand for gaming consoles is another factor driving the industry's growth. VR technology has enormous potential to be used in a wide variety of applications, such as medical training, industrial prototyping and education. Rising investment in this technology by both companies and Consumers is expected to drive demand for products over the forecast period. The emerging trends in VR technology have a direct impact on the developments in the VR headset industry, such as the introduction of convenient, attractive and sleek VR headsets.

VR Applications

The gaming segment accounted for the largest revenue share of over 30.0% in 2020 and is expected to dominate the global VR headset market over the forecast period. Gamers have a higher average price for transforming their gaming consoles or desktops compared to with non-gaming people. This has encouraged the companies to take advantage of the VR headset games within the reasonable price range for gamers. In addition, the retail segment is expected to see substantial growth as retailers integrate these devices into their stores to improve the shopping experience. The new online shopping trends adopted by the retail and e-commerce companies are including providing their potential customers with real shopping experiences to help them make a better purchasing decision, drive the growth of the segment.

Main VR companies

Leading companies continuously invest in R&D to develop cost-effective devices that offer high quality and can be used by various end-user industries. Oculus Rift, Oculus Rift S, Oculus Quest, OculusGo, 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 in various industry sectors. The significant expansion of the market is expected to be supported by game consoles from the likes of Nintendo, SEGA and Atari, Inc. Incessant investment in VR technology research and development by industry participants is expected to drive market growth during the forecast period.

High revenues from the gaming sector have prompted VR device manufacturers to capitalize on the VR headset segment by offering related software, hardware and content services. Many companies adopt various innovative technologies, such as Blu-ray, 4K, motion sensing, self tracking, video in HD quality and Six Degrees of Freedom (6DoF), to meet changing customer requirements. Moreover, mergers and acquisitions and partnerships with domestic companies are among the major strategies carried out by the global players in the industry. For example, in May 2020, HP Development Company, LP, a technology company, unveiled the new Reverb G2 VR headset, built in collaboration with with Microsoft Corporation and Valve. Some prominent players in the global VR headset market are:

• Carl Zeiss AG
• Facebook Technologies, LLC (Oculus)
• Google LLC
• HTC Corporation
• LG Electronics
• Microsoft
• Razer Inc.
• Samsung Electronics Co., Ltd.
• Sony Corporation
• Pico Interactive
• DPVR

Frequently Asked Questions about the VR market share