Global Virtual Reality Headset Market by End-device (High-end, Low-end), by Product Type (Smartphone-enabled, Standalone), by Application (Education, Gaming) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global virtual reality headset market was valued at USD 7.81billion in 2020. It is projected to grow at a compound annual rate (CAGR), of 28.2% between 2021 and 2028. Market growth is being driven by the widespread use of VR technology in military and automotive sectors. The industry's growth is also driven by the increased demand for gaming platforms. The vast potential of VR technology is enormous. It can be used in many applications such as education, medical training, prototyping, and industrial prototyping. Over the forecast period, the demand for VR technology is expected to rise due to the increasing investments by both consumers and enterprises in the technology. The new trends in VR technology are having an immediate impact on developments in the VR headset market, including the introduction of sleek, convenient and attractive VR headsets.

The incorporation of Artificial Intelligence and machine learning into VR will also be a key factor in driving product demand. Industry leaders are investing continuously in R&D to develop state-of the-art devices. In the wake of Covid-19 corporates have moved to online platforms to manage their business processes. Further driving market growth is the increased use of VR technology in virtual events. This allows businesses to reach potential customers from their own comfort zones and offer a real-like experience about their products and services.

VR Head-Mounted Devices are in high demand due to the growing adoption of VR products within the entertainment and gaming industries. Innovative devices are constantly being developed by companies to provide immersive entertainment and a high level of practicality in VR games. To increase their product offerings and to gain an edge, the main players in the industry are buying gaming companies. In February 2020, Facebook LLC bought Sanzaru, Inc., an American video game development company, to investigate the technological advantages Oculus Studios could use to create rich, VR-based content.

There are many growth opportunities for the VR market due to the increasing trend of VR becoming more social and collaborative. VR devices offer many benefits, including the ability to create a real world, deep visualization, immersive experience, and access to different sites. This is driving the market's growth. During the Covid-19 pandemic, these devices were in high demand by many industries, particularly for learning and teaching activities. The U.K. government used VR headsets to train its trauma doctors for the procedure. The National Aeronautics and Space Administration (NASA), used VR technology to create a Virtual Space Station, a series of interactive computer-delivered treatments and interactive behavioral training.

Due to changing shopping habits, VR technology is having a huge impact on the retail sector. This technology allows customers to shop anywhere and offers them a virtual shopping experience in-store. Augmented Reality (AR), VR, and VR have opened up new opportunities for the VR headset market. The technology fulfills significant needs of the buyers, such as detailed product information and retail-accessibility, along with convenience and fast digital shopping experience. Walmart, a global retailer, announced in 2019 that 17,000 Oculus Go headsets from Facebook Inc. would be used to train its employees in customer service and compliance skills. Before the Pickup Tower vending machines were installed in stores, staff had to practice using them in simulated environments. Over the forecast period, technological advancements and improvements in connectivity will also boost product demand.

End-device Information

In 2020, the high-end segment was responsible for more than 58% of the total revenue and will continue to dominate the market over the forecast period. These devices have advanced features such as high-quality visual effects and self-tracking. This will drive segment growth. Large corporations use high-end devices to offer better service to customers and employees. These devices feature the most advanced technology that offers enhanced involvement and high resolution for the viewers. Prominent players such as Sony Corp., Facebook, Inc., Samsung, and Google LLC will likely increase their demand in the coming years.

From 2021 to 2028, the lowest-end segment of devices will see the greatest CAGR at around 35.0%. These devices offer a number of benefits, including lower prices, immersive experiences, and high propulsion. Low-end devices can be affordable and easily accessible for those who only want to experience basic VR technology. Due to ongoing developments, the medium-range segment of devices will see significant growth over the next few years. This will be driven by small corporate companies.

Product Type Insights

In 2020, the standalone product segment was responsible for 43% of all revenue. It is expected to continue its dominance in 2021-2028. The standalone device provides a high-quality experience for a reasonable price. The segment's core feature, the integration and control of multiple mechanisms (including hardware and processing control), is driving its growth. Key players offer a variety of application-oriented devices at different price points and features. Facebook, Inc., introduced a hand-tracking function in Oculus Quest VR standalone headset in December 2019.

The segment of smartphone-enabled products is expected to grow at a rate of more than 30.7%, the second fastest CAGR. This segment growth can be attributed largely to the increasing penetration of advanced VR-enabled phones with the combination of 3D technology, AI, and 3D technology. From 2021 to 2028, the standalone PC-connected product segment will see a slowdown in demand. Because of its ability to provide a high-quality immersive gaming experience, the positioning of standalone PC-connected products within the gaming sector will likely continue to support the segment's progress. To offer gamers the best immersive experience, the industry's key players are constantly investing in new innovations and development.

Application Insights

In 2020, the gaming segment was responsible for more than 30.0% of the total revenue. It is expected to be the dominant market player in the global VR headset market during the forecast period. Gaming enthusiasts spend more on their desktops and gaming consoles than those who don't. The VR headsets are a great opportunity for firms to make a profit. Retail is expected to see significant growth, as more retailers integrate these devices into their stores to enhance the shopping experience. Segment growth is being driven by new online shopping trends. These include providing customers with real-life shopping experiences to make better purchasing decisions.

From 2021 to 2028, the education sector is expected to experience the fastest CAGR. This is due to increased product deployment at educational institutions and medical schools. The segment is also being boosted by the positive government regulations regarding facility enrichment and VR technology's advancements in healthcare. These devices are being used to train medical students, as well as to assist surgeons and medics in patient care, robotic surgery, pain management & therapy, and mental health & psychology therapies. This is driving healthcare segment growth. Because of their many benefits, the major players in healthcare are investing heavily in VR devices. GlaxoSmithKline, for instance, used VR technology in its "The Migraine Experience", marketing campaign. In this campaign, migraine patients chose the symptoms of their migraine, and then passed the VR headset on to their partner who was not a sufferer to get the experience of migraine.

Regional Insights

Due to increased digitalization and VR technology developments in the entertainment and gaming sectors, the Asia Pacific region held the largest market share at over 40%. China accounted for the highest revenue share in the region. This is due to 5G's introduction and the support of the Chinese government for VR advancements. Major companies from the region are using VR technology for multiple purposes, which has contributed to regional market growth. In January 2020, Virtuleap (a VR-based braintraining firm) and HTC Corporation launched the Enhance VR braintraining application in China. This app offers mini-games that are designed to help improve and assess various skills such as speed, spatial orientation and motor skills.

North America was responsible for a large revenue share in 2020 due to its high adoption of VR technology in this region, owing to its high disposable income and falling prices of headsets with screens and processors. Due to the large-scale investments made in VR technology by major tech companies such as Google LLC, Microsoft and Facebook LLC, the U.S. has been a major contributor to regional market growth. Europe will see significant developments due to the integration of smart devices such as VR headsets being used in various industries (defense, entertainment, education) to enhance and develop the visual experience. Regional market growth is being positively impacted by the increasing use of VR technology in arcades, cafes and amusement parks as well as exhibitions.

Market Share Insights & Key Companies

Companies invest in R&D to develop cost-effective devices that can be used by many industries. Oculus Rift S and Oculus Quest are just a few of the prominent VR headsets in various industry sectors. Atari, Inc., SEGA, Nintendo, and HTC are expected to support the significant growth of this market. The market is expected to grow due to the continued investments of industry participants in research and development of VR technology.

VR device manufacturers were able to capitalize on the high-revenue gaming sector by offering related software, hardware and content services. To meet changing customer needs, many businesses have adopted innovative technologies such as Blu-ray and 4K, motion sensing. Self-tracking. HD quality video. Six Degrees of Freedom (6DoF) are just a few examples. M&A and partnerships are two of the most popular strategies used by global industry players. In May 2020, HP Development Company L.P., a technology company, launched the Reverb G2 VR headset. It was developed in partnership with Microsoft Corporation, Valve, and other companies. The following are some of the most prominent players in global VR headset market:

• Carl Zeiss AG

• Facebook Technologies, LLC (Oculus)

• Google LLC

• HTC Corporation

• LG Electronics

• Microsoft

• Razer Inc.

• Samsung Electronics Co., Ltd.

• Sony Corporation

Up Market Research published a new report titled “Virtual Reality Headset Market research report which is segmented by End-device (High-end, Low-end), by Product Type (Smartphone-enabled, Standalone), by Application (Education, Gaming), By Players/Companies Google LLC, Razer Inc, LG Electronics, Sony Corporation, HTC Corporation, Microsoft, Samsung Electronics Co Ltd, Carl Zeiss AG, Facebook Technologies LLC (Oculus)”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Virtual Reality Headset Market Report Segments:

The market is segmented by End-device (High-end, Low-end), by Product Type (Smartphone-enabled, Standalone), by Application (Education, Gaming).

Virtual Reality Headset Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Virtual Reality Headset Market

Overview of the regional outlook of the Virtual Reality Headset Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Virtual Reality Headset Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Virtual Reality Headset Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. High-end

                2. Low-end

                1. Smartphone-enabled

                2. Standalone

                1. Education

                2. Gaming

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Virtual Reality Headset Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Virtual Reality Headset Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.