VR Statistics - Global VR Market Trends 2022

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June <00pam6>24</00pam6>, <00pam6>2022</00pam6>

The notion of reality has always been dependent on what our senses detect and what our minds process. We have always been relying on our senses and intuition to understand the reality; and whatever reality that these two offer to us, we have been living with it since forever. 

Now things are changing. 

As technology advances, man is not only just living within the given reality, but is also creating one of his own; or more than just one – and they call it Virtual Reality (VR). 

When you have the power of creating reality, there are endless possibilities. It’s simply a new world of opportunities and applications. Entertainment, Networking, Education, and Communication are some of the avenues where VR is making the inroads already. So let’s dive into the world of VR and learn some latest VR statistics.  

What is VR?

VR (Virtual Reality) is a realistic environment in 360º created through computer simulations. What’s different in VR from a normal 3D interface? It is the immersive experience that the VR provides. With the help of hardware such as VR Headsets, the user becomes a part of the VR environment and interacts within the VR through his head and body motions.

Since it’s a computer simulation, it’s virtual. But it’s also a reality that you can actually feel and interact with. Hence the name Virtual Reality. 

Just like most of the great scientific inventions, we first heard of VR in Sci-Fi fiction literature. But taking it out of the books and into the market with unlimited application prospects is one giant leap that the VR techies have taken. 

This obviously was made possible with the R&D investments by the Tech Giants like Google, Facebook, Sony, and others. The huge interest from these companies and their plans regarding VR suggests that we are entering into a new era of Technology i.e., the era of VR.

 And here are some virtuality reality statistics to prove it. 

VR Market Size

The VR market hasn’t been a disruptive one; which is very unlike other revolutionary technologies today.  Instead, we have seen VR following a slow and steady growth over the past years. VR statistics show that the market even took a few dips along the way and the global tech enthusiasts at one point thought maybe VR, despite all its captivating charm, isn’t a viable technology that will survive. But it wasn’t the case for VR.  

It took global companies and brands some time to realize the potential and with the ever-growing market applications of VR, its market is now beginning to show some promise. 

  • The virtual reality market was valued at $4.84 billion in 2021. This means that the virtual reality market grew by 51% compared to the year 2020.  Combined with the AR market, the total revenue goes up to $12 billion.
  • China is the biggest consumer of the VR/AR market. As the global spending on VR/AR is set to cross $72 billion in the next three years, China is currently the leading consumer market with $5.8 billion spent in 2021.
  • The MetaVerse market could reach $13 Trillion with 5 billion users by 2030. In the times when users are yet to fully understand what Metaverse actually is, a study by Citi Bank predicts that MetaVerse is the future of technology.
  • Individual consumers are the biggest contributors to the virtual reality market. More virtual reality statistics from the IDC report show that the Individual buyers did 53% of the total VR investments, followed by the Retail industry (16%), and Manufacturing (14%).

VR Users Statistics

It’s a fact that the VR adoption has been slow from the end-user side. The reasons for this were obvious; even the best in the tech business including the leading tech companies were unsure about the wide-scale applicability of VR/AR.

There were restraints too that hindered the rapid market penetration of VR. A few of them were seamless user experiences due to connectivity problems and a lack of high-resolution VR experiences. 

However, with more research and more funds being pumped into the VR sphere, the progress is now visible across the domestic market. The virtual reality statistics below present rather an expected picture of user adoption where consumers from the industrial world are the first to adopt VR products and services.  

  • There are 171 million VR users right now. The same report also looks into the age segments where VR is more popular and without any surprise, youngsters in the age bracket 16-34 years comprise over 65% of the total VR users. 
  • In the US, the number of VR users will Exceed 95 million users in 2022. Another report by Fortune suggests that the global AR/VR market is set to grow worth $227 billion by 2029. So it’s just a matter of time that the user base of VR technology reaches billions. 
  • 78% of the internet users in the US know about VR. Almost 80% of users in the biggest economy of the world have read about VR. And about 20% of the users have already tried VR technology. 
  • 30% of the AR users agree to in-app purchases. Ads are a game-changer for any platform. With the introduction of ads in the VR/AR technology, almost every business will look to invest and target the VR audience. 

VR Gaming Statistics

The gaming industry was one of the first to utilize the VR potential. Therefore, reports suggest that the virtual reality gaming industry, along with the entertainment industry, will be leading full-scale VR utilization in the next five years.

 Gaming development companies are already utilizing the available tech to generate billions of dollars in revenue. This will obviously improve with the development of much better VR hardware and software.

The 5G incorporation will change the game; not only for the virtual reality gaming industry but all the other industries that streamline their processes and make their infrastructure 5G compatible. This will enable them to provide their users with seamless VR experiences. For a clear picture of the current VR gaming market,  here are some latest VR gaming statistics.

  • Pokemon Go, the iconic VR game, has earned more than $4 billion so far. This game alone can take the credit for making VR/AR a global sensation. It not only took the gaming world by storm but also provided a much-needed boost to the virtual reality gaming market.  
  • VR Gaming generated $1.8 billion in 2020. The annual revenue will go up to $6.9 billion in 2025. Another research company, The Business Research Company has much higher figures of $9.39 billion in 2021. It expects the gaming industry to grow 40% in 2022 and generate $12.1 billion. 
  • Alphabet’s VR Headsets are the most popular Headsets among VR Gamers. 25.9% of all the gamers use Oculus Rifts S. Other popular headsets include HTC’s Vive and Valve Index HMD.
  • 40% of all VR technology users watch and play video games. Social media is the winner right now with 47% usage, followed by video games. VR users are also very interested in entertainment, music, and advertising. 

Sectors Driving VR Growth

The idea of simulated experiences excites customers and users from all industries. Gaming, Education, Healthcare, Retail, Security, Manufacturing, and e-Commerce have already adopted VR as an important component of their operations. As a result, these industries of whom VR impacts growth are the main investors in the VR sector.

Industry researchers believe that the upcoming implementation of the 5G technology and open MetaVerse are two of the main industries that will drive the exponential growth of VR technology. VR use cases might currently face hindrances due to interruptions in connectivity, resolution problems, and operational speeds, 5G will solve this problem.

On the other hand, as 5 billion people will be part of MetaVerse by 2030, VR will eventually become the main driving force behind this $13 Trillion market. 

Key Players in the VR Market

The key players in the VR global market today are technology manufacturing companies and other global tech/business giants. These companies are either producing VR products or platforms already, or they are using VR to improve the consumer experience. 

Take the example of Alphabet Inc. Not only has it built the VR Headset brand named Oculus for high-resolution VR experiences but has also announced other state-of-the-art VR tools. Also, the MetaVerse itself is a VR-centric platform that allows users to build a whole new virtual world. 

Other companies including Lenovo, HTC, and Sony are investing heavily in VR research and development. Apple Inc. has also recently acquired a VR events management platform named NestVR. 

Overall, all the big names in the tech industry today, while making efforts to stay relevant to the VR world, are also playing their part in VR technology development. 

VR Market Predictions

40% of the organizations have already adopted VR/AR-backed training programs in their resource development regimes. Industries such as healthcare and education think that VR is more impactful and resourceful in generating educational and training material. In medical training, for example, about 70% believe that VR trainings will stimulate future growth and problem-solving in the near future. 

Similarly, more than 75% of trainees in a VR-backed training program tend to stay and finish the training. Meanwhile, the conventional lectures have a retention rate of only 5%. In the security industry, the officers who train through VR training programs are twice more successful in police operations. 

All of this wide-scale cross-industry adoption of the VR tech suggests that VR is outperforming “reality” on many fronts already. As a result, it is easy to predict that VR is going to be the “mainstream reality” of the future.  

Final Thoughts

VR is futuristic and has the potential to disrupt the present global tech market. And the statistics above suggest that the future is now. The phase where the flame of VR burnt slowly for many years has passed. Backed by the biggest global tech companies, now is the time when VR blooms to its brightest days. 

Although the main use cases of VR technology are in the gaming and entertainment industries, it’s about time that other industry lines such as e-Commerce, Consumer and Retail, Education, Medicine, and others, realize the potential of VR in modernizing their operations and maximizing their ROIs. 

While most of the global business came to a halt during Covid-19, the VR Industry was one of the few businesses that grew. And now as the world is moving towards remote work and virtual work not by obligation, but by choice, the better days for the VR industry are around the corner.