Immersive VR Industry Projected to reach $34.9 billion by 2029

According to New Research Report of MarketsandMarkets, the global immersive VR Industry Future of the Immersive VR Industry: Trends, Growth Projections, Opportunities, and Challenges is expected to reach USD 34.9 billion by 2029, from USD 10.1 billion in 2024, representing a robust CAGR of 28.0%. This growth can be attributed to technological advancements that lower the hardware requirements for immersion, easier content creation for immersive experiences, increased awareness of the Metaverse, and a continuous shift toward digital training methods, especially in enterprise (manufacturing), are some of the factors contributing to this growth.

By offering, the software segment is expected to account for the highest share of the immersive VR market in 2023 and a similar trend is predicted by 2029. This increase can be ascribed to immersive VR software finding applications outside gaming and entertainment. Industries such as enterprise (manufacturing), education, healthcare, and aerospace and defense are rapidly using immersive VR for training, simulations, and product design. Furthermore, increased adoption of immersive VR software solutions, as well as their interoperability with existing hardware devices are likely to drive growth in the immersive VR software market throughout the forecast period.

By Device type, the Head-mounted Display (HMD) segment is expected to lead the immersive VR market, and future trends are predicted to follow this one. Since the overall virtual reality market is expanding, the price of HMDs is gradually falling, increasing its accessibility for a wide range of consumers. This lowering of prices may enable immersive VR to be a popular choice in consumer applications, especially in entertainment & gaming. Moreover, it is possible to achieve higher resolutions and smoother refresh rates owing to technological advancements in display technologies such as the OLEDoS technology. As a result, the VR content is being more realistic and immersive, lowering the barriers between the virtual and real environment.

The consumer segment is anticipated to dominate the immersive VR market between 2024 and 2029. This growth can be attributed to the level of immersion provided by immersive VR gaming that conventional gaming cannot match. Moreover, immersive VR puts the user right in the middle of what is happening making one feel as if they were an actual part of the gaming universe. For example, one could dodge bullets while feeling hot air or swing a sword while being able to notice every little thing going on around them. Furthermore, this technology provides tourists with opportunities to explore different parts of history or art more closely than ever before. Additionally, museums are utilizing immersive VR technology to offer visitors distinctive interactive experiences related to their collections and exhibitions featuring a range of themes.

In 2023, North America is expected to dominate the global immersive VR market. The region's market is expanding due to the increasing use of immersive VR technology in a wide range of industries, including aerospace and defense, healthcare, education, and remote work. Furthermore, the market is growing owing to the existence of established firms in the region, like Microsoft (US), Meta (US), Penumbra, Inc. (US), Unity Technologies (US), and PICO-Immersive Pte ltd. (US).