Virtual Reality Software Global Market Report 2024

The virtual reality software market size has grown exponentially in recent years. It will grow from $12.76 billion in 2023 to $16.32 billion in 2024 at a compound annual growth rate (CAGR) of 27.9%. The growth in the historical period can be credited to the adoption of gaming and entertainment, utilization in enterprise training and simulation, applications in healthcare and medicine, visualization in architectural and design, as well as initiatives in education and e-learning.

The virtual reality software market size is expected to see exponential growth in the next few years. It will grow to $40.88 billion in 2028 at a compound annual growth rate (CAGR) of 25.8%. The anticipated growth in the forecast period can be ascribed to the facilitation of remote collaboration and communication, increasing applications across various industry verticals, the emergence of social VR experiences, incorporation with augmented reality (AR), and consumer adoption for interactive product experiences. Notable trends expected in the forecast period encompass the expansion of applications in healthcare, the availability of affordable hardware options, a surge in content creation and innovation, emphasis on enhancing user experience, and the utilization of VR in government and military applications.

The virtual reality software market is experiencing growth, driven significantly by the flourishing gaming industry. The appeal of VR-powered games surpasses traditional mediums such as books, making them more engaging. Amid the global pandemic, people worldwide are turning to VR games as a means to combat boredom and alleviate pandemic-related fears. An example is the COVID Escape Room, an affordable VR game designed to help children understand real-world activities and concepts in a virtual environment. This game not only educates children on practices such as handwashing and sneeze etiquette to prevent COVID-19 but also provides detailed insights into the importance of social distancing. In July 2023, the Entertainment Software Association reported that US consumers spent $59.6 billion on video games in 2021, reflecting a growth from $56.1 billion in 2020, underscoring the driving force of the expanding gaming industry on the virtual reality software market.

The increasing prevalence of robotic surgeries is anticipated to be a significant driver for the growth of the virtual reality software market. Robotic surgery, a form of minimally invasive surgical procedure aided by robotic systems, benefits from virtual reality software in terms of surgical training, planning, and real-time assistance for surgeons. This software enhances patient education, data visualization, and the overall efficiency and precision of robotic surgeries. For instance, in December 2021, Intuitive Surgical, Inc. reported that the number of robotic-assisted surgical procedures using da Vinci surgical systems worldwide surpassed 10 million, marking a notable milestone in minimally invasive surgery. Consequently, the rising adoption of robotic surgeries contributes to the growth of the virtual reality software market.

A notable challenge hindering the growth of the virtual reality market is the large size of VR software. Virtual reality software demands significant computing power and occupies substantial storage space compared to other technologies. VR devices require additional programming for an immersive experience, and condensing the software without compromising quality is a complex task. This compression process leads to increased initial costs for VR software. Professional development of virtual reality software typically incurs costs ranging from $10,000 to $60,000 or more. The expanding applications of virtual reality generate substantial amounts of data, with some applications producing up to one terabyte of data per hour. Addressing the storage demands presents additional costs for VR companies, limiting investments in virtual reality software.

The incorporation of virtual reality (VR) into healthcare via mobile apps stands out as a significant trend in the virtual reality software market. VR-based mobile applications facilitate the treatment of various diseases, addressing numerous health issues. Additionally, these VR apps serve educational purposes, extending beyond students to include other interested stakeholders. As an illustration, in September 2022, Novant Health, a US-based healthcare company, introduced VR training for its administrative and clinical team members in leadership. This immersive virtual reality leadership training, featuring voice activation, helps leaders navigate sensitive issues with their teams, drawing inspiration from 'Talking Taboo.' It provides a realistic environment for practicing challenging workplace discussions while tackling unconscious bias.

Leading companies in the virtual reality software market are increasingly exploring partnership opportunities to exchange knowledge and expertise, aiming to gain a competitive edge. For instance, in 2021, ArborXR and Matts Digital announced a partnership to deliver seamless extended reality solutions at scale in Europe and beyond. Similarly, in July 2022, HTC Corporation, a Taiwan-based consumer electronics manufacturer, collaborated with VRdirect GmbH, a Germany-based virtual reality solution provider. This partnership aims to open up the B2B metaverse to various business types, with HTC's VIVE Business AppStore now offering VRdirect software for the HTC Vive Focus 3.

In April 2022, Axon Enterprise, Inc., a US-based manufacturer of electrical weapons, acquired Foundry 45 for an undisclosed amount. This acquisition has strengthened Axon's capabilities in delivering innovative, immersive virtual reality training modules, enhancing its public safety training offerings, and expanding its global reach in growth markets. Foundry 45, a US-based virtual reality training company specializing in developing immersive training modules for large enterprises, aligns seamlessly with Axon's objectives.

Major companies operating in the virtual reality software market report are Microsoft Corporation, Qualcomm Incorporated, BAE Systems AB, Blippar Inc., Pixologic Inc., Razer Inc., WorldViz., Unity Technologies, Oculus VR LLC, EON Reality Inc., Mirra Inc., High Fidelity Inc., Virtalis Holdings Limited, Unigine Holding S.à r.l., Starbreeze Studios, Smartvizs Private Limited., Axonom Powertrak, Istaging Corp., Techviz SAS, The LearnPro Group, Wild Technology Inc., Imaginate Technologies., Briovr, Cupix Inc., Metaio Gmbh, High Tech Computer Corporation, Viar, Phenomatics Virtual Reality Software, Engineering Systems International. Group, Arcadia Augmented Reality, Epic Games Inc., NVIDIA Corporation, Sony Interactive Entertainment, Valve Corporation, Autodesk Inc., Parametric Technology Corporation, Dassault Systèmes S.A., Magic Leap Inc., Alphabet Inc., Samsung Electronics Co. Ltd. Asia-Pacific was the largest region in the virtual reality software market in 2023. North America was the second largest region in the global virtual reality software market analysis. The regions covered in the virtual reality software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary categories of virtual reality software include 3D modeling software, 360-degree custom VR software, and real-time simulation software. 3D modeling software is employed to generate a virtual three-dimensional representation of a physical object. These software applications are implemented through on-premise and cloud modes, catering to diverse sectors such as automotive, medical, real estate, oil and gas, entertainment, industrial, and other applications.

The virtual reality software market research report is one of a series of new reports that provides virtual reality software market statistics, including virtual reality software industry global market size, regional shares, competitors with a virtual reality software market share, detailed virtual reality software market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality software industry. This virtual reality software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the virtual reality software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The virtual reality software market includes revenues earned by entities by offering virtual reality software that are used in different sectors such as aerospace, defense, gaming, entertainment, tourism, diagnostics and surgeries. Virtual reality (VR) is an artificial environment generated with software and displayed to people so that the user suspends convictions and accepts them as real environments. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.