Virtual Reality Market Projected to Grow 15% Annually Through 2030

The global virtual reality (VR) market was valued at USD 21.83 billion in 2021. According to a new report by Grand View Research, the market is projected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030.

Virtual reality technology simulates three-dimensional environments using devices such as head-mounted displays, gloves, and bodysuits. The technology has revolutionized the gaming and entertainment sectors, with its applications increasingly extending into training and education for professions like engineers, mechanics, and pilots.

Applications of VR technology also span the automotive industry, where prototypes can be tested virtually before production. It is used in treating mental health issues and in tourism for virtual tours. The COVID-19 pandemic accelerated VR adoption for remote work and virtual events, further driving market growth.

In architecture and real estate, VR enables the visualization of designs and virtual property tours. In the entertainment and sports industries, VR has gained popularity in theme parks and gaming experiences. The technology is expected to dominate the market in the coming decade.

The report segments the market by devices (such as head-mounted displays), technology (semi/fully immersive and non-immersive), and components. Head-mounted displays are expected to account for over 60% of the market share in 2021.