Space-Based Virtual Reality Market Report 2025

The space-based virtual reality market size has grown exponentially in recent years. It will grow from $2.01 billion in 2024 to $2.57 billion in 2025 at a compound annual growth rate (CAGR) of 27.7%. The growth during the historic period can be attributed to military training and simulation, space exploration efforts, astronaut training requirements, the expansion of immersive education, and the emergence of space tourism.

The space-based virtual reality market size is expected to see exponential growth in the next few years. It will grow to $6.77 billion in 2029 at a compound annual growth rate (CAGR) of 27.5%. The growth during the forecast period can be attributed to increasing investments in space tourism, rising demand for immersive telepresence, expanded use in remote scientific research, development of virtual mission planning tools, and growth in commercial space ventures. Key trends in the forecast period include the integration of virtual reality with artificial intelligence (AI) and machine learning, real-time VR streaming via satellite, development of lightweight VR headsets for space applications, immersive VR training modules for astronauts, and the use of edge computing to enable low-latency VR experiences.

The rising investment in space exploration is expected to drive the growth of the space-based virtual reality market moving forward. Space exploration involves the discovery and study of outer space through spacecraft, satellites, and advanced technologies, both crewed and uncrewed. This increased investment is fueled by intensified geopolitical competition as countries aim for strategic dominance and technological leadership in space. Funding in space exploration advances space-based virtual reality by improving immersive technologies and satellite connectivity, enabling realistic simulations for training, research, and remote operations. It supports the creation of VR tools designed specifically for microgravity environments, enhancing astronaut readiness and mission planning. For example, in March 2024, NASA, a US-based independent agency, projected its budget to increase from $25.383 billion in 2024 to $27.476 billion by 2029. Hence, the growing investment in space exploration is propelling the expansion of the space-based virtual reality market.

The increasing spread of smartphones is expected to boost the growth of the space-based virtual reality market going forward. Smartphones are portable devices used for communication, internet access, multimedia consumption, and running various applications. The rise in smartphone use is driven by expanding internet access, affordable devices, and growing demand for mobile digital services. Smartphones enhance space-based virtual reality by acting as accessible VR platforms, allowing users to engage with immersive space content via mobile apps and headsets. They enable on-the-go simulations and educational tools, broadening the audience for space-based virtual reality. For instance, in October 2023, the GSM Association, a UK-based non-profit, reported that nearly 4.3 billion people (53% of the global population) were using smartphones to access the internet, with around 80% of mobile internet users on 4G or 5G devices - an increase of 330 million users from 2022 to 2023. Therefore, the growing smartphone penetration is fueling the growth of the space-based virtual reality market.

Leading companies in the space-based virtual reality market are focusing on creating advanced products such as VR headsets designed for mental health support, aimed at enhancing astronaut well-being, reducing stress, and improving mission outcomes. VR headsets for mental health are immersive devices intended to provide psychological relief, relaxation, and cognitive therapy during extended space missions. For example, in November 2023, XRHealth Inc., a US-based digital health tech firm, partnered with Nord-Space Aps, a Denmark-based engineering company, and HTC Corporation, a Taiwan-based electronics company, to develop a VR headset specifically for mental health in space. This innovative headset is scheduled to be sent to the International Space Station (ISS) to assist astronauts in managing stress, anxiety, and isolation during missions. The system includes guided meditation, cognitive behavioral therapy exercises, and immersive relaxation environments, all optimized for use in microgravity.

Major players in the space-based virtual reality market are Airbus SE, Lockheed Martin Corporation, Northrop Grumman Corporation, National Aeronautics and Space Administration, Thales Group, Rheinmetall AG, Blue Origin Enterprises L.P., European Space Agency, XRHealth Inc., Innerspace VR, SenseGlove B.V., SpaceCRAFT VR LLC, Felix & Paul Studios Inc., Nord-Space Aps, PaleBlue Inc., Raytracer Ltd., Space Nation Oy, SpaceVR Inc., WorldViz LLC, and SpaceRobotics.eu.

North America was the largest region in the space-based virtual reality market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in space-based virtual reality report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the space-based virtual reality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Space-based virtual reality involves using immersive VR technologies to simulate, support, or enhance activities connected to space exploration and operations. It replicates orbital or deep-space environments with high fidelity to improve user engagement and operational readiness. The primary purpose is to offer realistic, risk-free simulations for training, mission planning, and public outreach related to space activities.

The main components of space-based virtual reality include hardware, software, and services. Hardware consists of physical devices used to create, deliver, and interact with immersive VR experiences in space-related contexts. Its applications span gaming and entertainment, education and training, healthcare, aerospace and defense, and others, serving end users across commercial, residential, and industrial sectors.

The space-based virtual reality market research report is one of a series of new reports that provides space-based virtual reality market statistics, including space-based virtual reality industry global market size, regional shares, competitors with a space-based virtual reality market share, detailed space-based virtual reality market segments, market trends and opportunities, and any further data you may need to thrive in the space-based virtual reality industry. This space-based virtual reality 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 space-based virtual reality market consists of revenues earned by entities by providing services such as immersive astronaut training, virtual mission simulations, spacewalk rehearsals, and remote spacecraft operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The space-based virtual reality market also includes sales of virtual reality headsets, 3D visualization tools, simulation software, motion tracking systems, and haptic feedback devices. 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.

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 and 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.

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