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What is VR?

Let’s quickly review what virtual reality is before we get into the numbers.

Virtual reality is exactly what its name implies. The three-dimensional digital environment is created using the latest computer technology. It immerses users in a simulation that allows them to experience a new world.

The user can explore these virtual worlds by using special devices like headsets, goggles and gloves.

Let’s take a look at how popular VR is and the factors that are driving its growth.

1. Market Size for Augmented Reality and Virtual Reality

Let’s start by looking at the market size of this sector.

According to the latest statistics on virtual reality, the market size for AR and VR in 2024 is expected to reach $296.9 Billion (Statista 2021). This is ten times larger than the market size of $30.7 billion registered in 2021.

The figure for 2022 is already up by a staggering 91.2 percent. The figure is expected to double in 2023 to $124.4 billion, and then skyrocket in 2024. This growing market shows how popular this technology will be in the coming years.

Although AR and VR are not as popular as other electronic devices like smartphones or smartwatches yet, their growing market is a clear indicator of their potential. Microsoft, Intel and Sony are among the tech giants that have invested a lot of money in developing and improving VR.

We’ll see the next stat that this popularity is likely to continue for at least another few years.

2. Virtual Reality Growth

All signs point towards a boom in the virtual-reality market.

Grand View Research estimates that the compound annual growth of the market will be 18 percent between 2021 and 2028 (Grand View Research 2021). The VR industry is expected to grow by an average 18 percent per year over the next seven years (Grand View Research, 2021).

Analysts predict that oil and gas, and manufacturing will be the main drivers of this growth. The use of VR for training mechanics, pilots and technicians, in particular, is expected to grow.

Businesses and organizations have been embracing VR in commerce with great enthusiasm.

ASOS, a UK-based company, adopted the technology to increase fashion sales in the face of the Coronavirus pandemic. The ecommerce firm digitally fitted their models with the new designs using VR. ASOS was able to market its products in a creative and innovative way to customers without having to send their models to a studio.

3. The Demand for AR and VR Devices is Growing

With the benefits and potential of virtual reality, it is no surprise that demand for AR/VR headsets will continue to grow in the future.

In 2022, IDC estimates that 14.94 million devices will be shipped, up from 9.69 million in 2021 (IDC, 2021). These devices were dominated by VR, representing 91 percent the number of VR and AR products that were expected to ship last year.

This number is also expected to rise to 23,22 million by 2023 and to 32,76 million by 2024. Experts estimate that by 2025, 43.87 millions devices will have been shipped around the world. This is a remarkable increase of seven times from 2020 to 2025.

Analysts attribute the AR and VR boom in part to the pandemic of the coronavirus, which forced the closure of offices and the employees to work at home. Many companies and employees began to use AR and VR to do remote work, attend events and cut contact with the rest of world.

4. Virtual Reality Facts: Popularity is increasing

Virtual reality is a growing trend that has spread across the globe.

In 2020, nearly one-fifth (19%) of US consumers will use VR. This is a three-point increase from the 16 percent reported in 2019 (AR insider, 2020). The majority of users are happy with their experience. 55 percent say they’re extremely or moderately pleased.

This is great news for the VR industry, as content encourages repeated use, one of the most important factors in success.

But not everything is perfect. It is difficult to get past the barrier of VR. The consumers who don’t use VR say that they are not interested in trying it out or learning about it. This will be a challenge to VR developers.

5. Virtual Reality in the US

The use of VR in the US is expected to grow as more people purchase VR devices.

According to the latest statistics on virtual reality, and 70.8 million Americans will use this technology at least one time per month by 2023 (eMarketer 2022).

This represents a 6 percent increase per year from the 66,8 million in 2022 and a 39.6 percent increase overall from 2020.

In the future, more US residents will also be using VR. By 2025, this number will rise to 73.7 millions.

According to the predictions, VR usage will increase by 48.7% in five years, from 2020-2025.

6. Virtual Reality: Future predictions on economy and employment

Virtual reality is also expected to have economic benefits, according to experts.

A recent analysis by leading consulting services firm PricewaterhouseCoopers purports that the tech is capable of injecting approximately $1.83 billion into the world economy by the end of this decade.

The report predicts that VR is likely to lead to an increase in employment opportunities.

VR/AR is currently affecting fewer than 500,000 jobs in the world. By 2030, up to 23 million jobs will be using VR and AR in some way for training, meetings and customer service (PwC 2019).

The largest economies such as the US, UK and Germany are expected to be most affected.

7. Sectors driving virtual reality growth

The question then becomes: what are the main drivers of such impressive growth?

A recent report span size=”font-weight 400 ;”>, states that the gaming and entertainment industries are the main drivers for VR growth in the world (Global Data, 2022).

It is easy for gamers to simply pop on the headset, start, and they are transported to a whole new world. The demand for VR gaming also increased during the COVID-19 Pandemic as more consumers played games.

The entertainment industry has also been eager to adopt the technology. The London Thorpe Park, for example, has used VR holograms to enhance rides in its theme park. A video game company also launched Mario Kart VR.

VR is also used in other fields, such as education. It is also used to train pilots and doctors. Virtual reality is a good solution for such jobs because of their nature and the high cost of mistakes.

8. Gaming market growth in virtual reality

As the demand for VR gaming grows, more and more companies are adopting this technology.

Virtual reality is expected to grow quickly in the gaming industry over the next few decades.

According the the latest statistics on virtual reality, it is expected to reach $82.31 billion by 2027. This represents a growth rate of 30.2% per year between 2020 and 2027.

Millennials are expected to be the biggest drivers of this, as their demand for technologically advanced games will force game developers to use VR more to meet increasing standards.

9. VR Investments by Country

While VR investments will come from many countries around the world, there are some that are likely to be at the forefront.

China, the Asian giant, is on top of the list with an estimated $5,8 billion in technology expenditures for 2020 (Statista 2019). This is an impressive amount. Its spending projection accounted for 30.8 percent ($18.8 Billion) of the total amount spent globally on VR.

The US spent $5.1 billion in virtual reality technology, making it the second largest investor. In 2020, the US and China together accounted for 58 percent global VR investments.

The entire Western Europe bloc followed with $3.3 billion, and Japan was next with $1.8 billion.

10. Virtual Reality Market: Key Players

VR is a relatively young technology. There are currently only a few major players on the market.

The major players are Meta and Sony. HTC, NVIDIA Samsung, HTC, NVIDIA.

These brands are heavily represented on different review sites that rank the best VR headsets for 2023.

You can expect to see big names enter the virtual reality market very soon, due to the increasing demand. Apple, a leading tech company, has already started working on a virtual reality headset that they plan to release in 2023.

Conclusion

Here are the top virtual reality statistics for 2023. You should now have a clearer idea of where this technology is heading and what it can do.

With the advances in virtual reality over the past few years, we can safely say that it is only a question of time until it takes over our daily lives.

If you want to be the first to sell its products or adopt it for your ecommerce shop , then it is always best to start sooner than later.

Summary of Virtual Reality Statistics

Here is a summary of Virtual Reality statistics that you should know by 2023.

Statista, 2024) predicts that the market for AR and VR will reach $296.9 Billion in 2024.
The compound annual growth of the virtual-reality market from 2021 to the year 2028 is 18% (Grand View Research 2021).
In 2022, 14.94 million AR and VR headsets will be shipped worldwide (IDC, 2021).
In 2020, nearly one fifth (19%) of US consumers will use VR (AR Insider 2020).
In 2023, 70.8 million Americans will use virtual reality at least once a month (eMarketer).
By 2030 23 million jobs in some way will use AR and VR (PwC 2019).
Global Data estimates that the gaming and entertainment industries will be the main drivers of VR growth in 2022).
Grand View Research estimates that the VR market will reach $92.31 Billion in 2027.
In 2020, China and the US will be the leading VR investors, with $5.8 and $5.1 billion respectively spent on the technology (Statista).
Meta, Sony HTC NVIDIA and Samsung are the major players on the VR market today (Global Data 2022).

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Author: Ying Lin

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