North America Virtual Reality Market – Industry Trends and Forecast to 2029

North America Virtual Reality Market Analysis and Size

Virtual reality has brought a new change to digitalization. It has become easier to experience the real world by setting different environmental conditions. Augmented reality & mixed reality has a wide range of applications. The market's growth increased as the use of augmented reality, and mixed reality became popular in driving simulators. The augmented reality and mixed reality provide the driver with a real sense of the road, driving conditions, car manuals, and road traffic that helps avoid accidents at an initial stage of learning and prepares the drivers for various situations. These attributes have also led to an increased usage of virtual reality in defense and aerospace. The army personnel used it for training in various conditions such as parachute jumping, submarine, combat situations, and driving in various environmental conditions.

The growing demand for HMD in the gaming and entertainment industry is expected to act as a major driver for the North America virtual reality market. The lack of effective user experience design may restrain the market. Also, the increased deployment of VR technology in the aerospace & defense and architecture & planning sector may act as a major opportunity that helps in the market's growth. However, emerging risks and threats to data integrity may challenge the North America virtual reality market.

Data Bridge Market Research analyses that the North America virtual reality market is expected to reach the value of USD 169,708.14 million by 2029, at a CAGR of 48.7% during the forecast period. The hardware segment accounts for the largest component segment in the North America virtual reality market. The North America virtual reality market report also covers pricing analysis, patent analysis, and technological advancements in depth.    

Market Definition

Virtual reality can be defined as a technology that creates a simulated environment through computer technology. Virtual reality provides an immersed 3D environment to the user by simulating various senses such as vision, touch, hearing, and even smell. Virtual reality uses devices such as head-mounted displays, projectors, and display walls to generate realistic visuals and sounds to provide a real-world experience in the virtual environment. The person using virtual reality can view the artificial world 360 degrees and even sense the virtual environment with highly advanced gears. This technology is being widely used in various industrial applications, especially for training and research purposes. The defense and aerospace industry uses it for training the army personnel by providing various environmental conditions, this aids in reducing the overall cost of the training. The gaming sector provides virtual reality directly to the users by enhancing their gaming experience; people are getting more accustomed to virtual reality through their experience in the gaming and entertainment industry. Virtual reality has also aided in driving simulators by providing a real-life experience in an artificial environment helping the users to adapt to the driving conditions and know how to react in various situations without actually taking the driving lessons directly on the road.

Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Growing demand for HMD in the gaming and entertainment industry

Head-mounted displays (HMDs) have been high in the gaming and entertainment sector. The gaming industry has had a technological evolution with the emergence of VR and 3D technology. The use of HMDs has helped achieve a fully immersive experience for users and has taken the gaming experience to the next level. The flawless transition conducted with VR HMDs has helped bring in a unique and enhanced user experience. HMDs have a high penetration rate in the video gaming sector, and video game users prefer them for enriching experiences and entertainment. HMDs project digital images, enabling a 3D view, which enhances the user experience. Therefore, the growing gaming sector would drive the market for HMDs and, in turn, virtual reality.

• Increasing demand for VR technology due to the COVID-19 pandemic

The world is going through different phases of physical lockdown, and social get-togethers are still not allowed in most countries. Hence, AR and VR Technology during COVID-19 are emerging as superheroes by enabling people to feel connected to each other. Augmented reality adds digital elements to the physical world, and Virtual Reality gives an immersive experience to the viewers. VR devices such as Google Cardboard, HTC Vive, or Oculus Rift transport users to experience several real-world and imaginary environments.

Opportunity

• Increased deployment of VR technology in aerospace & defense and architecture & planning sector

The 3D design has enabled significant gains in the aerospace and defense equipment manufacturing processes. This has also positively impacted both performances of the aircraft as well as the manufacturing processes. The advancements in new 3D technologies bring new market opportunities to optimize production time and cost in the aerospace and defense industry. 3D technology has been a continuous trend, specifically in the aerospace industry. Recent developments in virtual reality technology have promised new applications in the aerospace and defense domain, impacting the growth of virtual reality in the aerospace and defense market. 3D visualization abilities incorporated with digital mock-ups of physical objects, virtual assembly lines, tighter integration, and a seamless design process would drive the market shortly.

Restraint/Challenge

• Emerging risks and threats to data integrity

Virtual reality is being highly used for training and education purposes in defense and aerospace and is also used in telemedicine in the healthcare industry. Virtual reality uses computing technologies, cloud usage, and internet services to work, making it highly prone to cyber-attacks, threatening data integrity, and increasing the risk of data being leaked. Proper security and privacy are not being given much importance, posing a significant challenge for the North America virtual reality market.

COVID-19 Impact on North America Virtual Reality Market

COVID-19 significantly impacted various industries as almost every country has opted for the shutdown for every facility except those in the essential goods segment. The government has taken some strict actions such as shutting facilities and selling non-essential goods, blocking international trade, and many more to prevent the spread of COVID-19. The only business dealing in this pandemic situation is the essential services allowed to open and run the processes.

The increased usage of virtual reality-based devices has provided significant opportunities amid the covid-19 pandemic. Although consumer purchasing power has been greatly diminished due to the coronavirus-induced economic slump, resulting in the decline of profit margins in organizations. While many key marketers and leaders saw signs of improvement from past years, it remains difficult to ascertain the actual market situation as the pent-up demand may be covering up a lower intrinsic level of demand for VR-based devices. The increase in VR smartphone applications, the rise in demand for remote collaboration, and technological advancements in medical applications are some factors driving augmented reality and mixed reality market growth.

Manufacturers are making various strategic decisions to meet the growing demand in the COVID-19 period. The players were involved in strategic activities such as partnerships, collaborations, acquisitions, and others to improve the technology involved in the Virtual Reality market. The companies will bring advanced and accurate solutions to the market. In addition, the government initiatives to boost digitization across industries have led to the market's growth.

Recent Development

• In May 2019, Autodesk Inc. announced integration between InsiteVR and its construction management platform Autodesk BIM 360, allowing customers to host group model reviews in VR. Instead of screen sharing, team members can review models in an immersive 3D environment using a VR headset, including Facebook's new all-in-one Oculus Quest virtual reality system or desktop. This collaboration helped in improving the product portfolio with respect to VR technology

North America Virtual Reality Market Scope

North America virtual reality market is segmented based on component, device type, technology, and vertical. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
• Software

On the basis of component, the North America virtual reality market is segmented into hardware and software.

Device Type

• Head-Mounted Displays,
• Projectors & Display Walls 
• Gesture-Tracking Devices

On the basis of device type, the North America virtual reality market is segmented into head-mounted displays, projectors & display walls, and gesture-tracking devices.

Technology

• Fully Immersive,
• Semi Immersive
• Non-Immersive

On the basis of technology, the North America virtual reality market is segmented into fully immersive, semi immersive, and non-immersive.

Vertical

• Automotive
• Aerospace & Defense
• Entertainment & Media
• Healthcare
• Education
• Industrial
• Commercial
• Others

On the basis of vertical, the North America virtual reality market is segmented into automotive, aerospace & defense, entertainment & media, healthcare, education, industrial, commercial, and others.

North America Virtual Reality Market Regional Analysis/Insights

North America virtual reality market is analysed, and market size insights and trends are provided by the country, component, device type, technology and vertical as referenced above.

Some countries covered in the North America virtual reality market report are the U.S., Canada and Mexico.

The U.S. is expected to dominate the North America virtual reality market owing to the continuously rising digital workplace and mobile workforce. Moreover, the U.S. has been extremely responsive to the adoption of virtual reality technology.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends and porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North American brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and North America Virtual Reality Market Share Analysis

North America virtual reality market competitive landscape provides details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and breadth, application dominance. The above data points provided are only related to the companies' focus related to the North America virtual reality market.

Some of the major players operating in the North America virtual reality market are Sony Corporation, Lenovo, Autodesk Inc., Nintendo, WorldViz, Inc., Firsthand Technology Inc., Sixense Enterprises Inc., HTC Corporation, FOVE, Inc., Ultraleap, LG Electronics, Google (A Subsidiary of Alphabet Inc.), Qualcomm Technologies, Inc., Barco, HP Development Company, L.P., Microsoft, FXGear Inc., SAMSUNG ELECTRONICS CO., LTD., Virtuix, among others.

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