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Saudi Arabia Virtual Reality Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

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    Report

  • 143 Pages
  • October 2025
  • Region: Saudi Arabia
  • Expert Market Research
  • ID: 6176289
The Saudi Arabia virtual reality market was valued at USD 161.70 Million in 2024. The industry is expected to grow at a CAGR of 23.10% during the forecast period of 2025-2034 to reach a value of USD 1.29 billion by 2034. The market benefits from the presence of a digitally savvy demographic profile, driving the adoption of immersive technology.

Key Market Trends and Insights

  • By application, media and entertainment is set to expand at a CAGR of 26.3% over the forecast period, attributed to the increasing integration of VR in interactive concerts, virtual cinemas, and theme parks.
  • By offering, software gains notable traction and is estimated to witness significant growth at a CAGR of 26.1% through the forecast period, mainly due to the national-level metaverse integration.

Market Size & Forecast:

  • Market Size in 2024: USD 161.70 Million
  • Projected Market Size in 2034: USD 1.29 billion
  • CAGR from 2025 to 2034: 23.10%
  • Fastest-Growing Application segment: Media and Entertainment
According to market analysis, in May 2023, the kingdom's population stands at 32.2 million, with 63% of Saudi nationals under the age of 30. This massive youth segment is digitally native, curious, and eager to engage with next-generation experiences.

More than 60% of the population is under 35, creating a natural user base for VR and AR technologies. These young consumers are adept in mobile and digital platforms, and they actively seek out immersive environments for entertainment, education, and connection, contributing to the Saudi Arabia virtual reality market growth.

Additionally, it has also resulted in a growing appetite for virtual concerts, social VR hangouts, and interactive storytelling. Saudi youth are also embracing VR-based travel experiences, 3D product trials, and metaverse-style events, demanding more from brands, venues, and institutions in terms of digital engagement.

Moreover, government agencies in Saudi Arabia are actively embracing immersive technology integration. For instance, the Zakat, Tax and Customs Authority (ZATCA) rolled out VR-based training modules for customs officers in March 2025. These immersive programmes simulate real-life inspection, security checks, and enforcement scenarios, offering staff a hands-on, risk-free learning environment that improves accuracy and confidence on the job.

Apart from this, ministries and training centres are now investing in AR/VR-based upskilling platforms, remote collaboration tools, and simulated crisis response drills. These initiatives support the shift from traditional training models to real-time, experiential learning, thereby fuelling Saudi Arabia virtual reality market growth.

Key Trends and Recent Developments

July 2025

Digital Gravity KSA, a leading digital solutions provider in KSA launched its innovative virtual reality (VR) services in Saudi Arabia. Through its VR services, Gravity KSA aims to offer businesses a unique opportunity to connect with audiences in extraordinary ways, with a focus on delivering immersive and engaging experiences.

December 2024

The Museums Authority announced the opening of applications for the 'Virtual Reality for Museums Competition', which seeks to encourage talents to develop interactive educational experiences within museums. This project is part of the Authority's efforts to encourage education and innovation in the sector.

August 2024

Tuwaiq Academy partnered with Meta to announce Saudi Arabia’s first-of-its-kind diploma programme in game development and virtual worlds. The program is intended to strengthen national capabilities by providing essential expertise in game development, virtual world creation, and augmented and virtual reality technologies through a learning methodology focused on job market demands.

November 2023

Riyadh Air signed an MoU with Microsoft to drive innovation and sustainability in Saudi Arabia’s aviation sector. The airline chose Microsoft Azure as its preferred cloud platform to support its digital transformation. Both companies agreed to collaborate on advanced technologies like Big Data, AI, Metaverse, and Virtual Reality to enhance Riyadh Air’s services and operations.

Digitization of the retail sector

The increasing digitisation of the retail sector through the integration of immersive technologies is stimulating Saudi Arabia virtual reality market growth. Partnerships such as the one announced between Apparel Group and Sandbox VR in May 2024 illustrate how traditional retail spaces are evolving into innovative entertainment hubs. The Apparel Group enhanced customer engagement, attracted foot traffic, and created unique, tech-driven environments across its venues by incorporating location-based VR experiences. This technology supports retail companies in competitive markets, enabling them to benefit from digitised retail and real estate assets to attract new audiences, boost revenue streams, and redefine consumer experiences.

Vision 2030 and government digitization push

The Vision 2030 is a bold plan set by Saudi Arabia to diversify its economy. It promotes the use of new technologies like Virtual Reality (VR) to improve important areas such as healthcare, education, tourism, and entertainment. The government is supporting projects that use VR to create better experiences for people and make services more effective, which is boosting the Saudi Arabia virtual reality market expansion. By embracing these innovations, Saudi Arabia aims to reduce its dependence on oil and create new jobs and industries. Additionally, it also supports the country's shift towards a tech-driven future and the economic growth in modern revenue sources.

Expansion of the local gaming ecosystem

Saudi Arabia is rapidly expanding its local gaming ecosystem which is fostering the Saudi Arabia virtual reality market growth. A recent example is the partnership between PIF-backed Savvy Games Group and global gaming service provider Side to launch a new studio in Riyadh by Q4 2025. The companies revealed that the facility will offer co-development, localization, and audio services customised to Saudi needs. The initiative also focuses on training local talent through collaborations with universities and programs like Savvy Academy, further contributing to the increasing adoption of virtual reality technologies in the kingdom.

Strong internet and 5G infrastructure development

The Saudi Arabia virtual reality market is fuelled by the rapid rollout of 5G networks, which is enhancing speed, reducing latency, and improving connectivity. This enables smooth delivery of high-quality cloud-based VR experiences without lag. In Saudi Arabia, telecom operator Zain KSA invested USD 430 million in March 2024, to expand 5G coverage to 122 cities, demonstrating the Kingdom’s dedication to developing advanced digital infrastructure. Additionally, widespread 5G availability supports VR adoption across platforms, allowing more complex, interactive content and greater user mobility.

Entertainment and theme park integration

Entertainment and theme park integration is becoming a notable trend in the Saudi Arabia virtual reality market. Projects like Boulevard World, launched in October 2024, incorporated expansive VR zones and immersive rides, merging real-world excitement with digital innovation. In addition, in July 2024, the Qiddiya Performing Arts Centre announced plans to embed virtual and augmented reality across 260 annual performances. It exemplifies the government's aim to build a vibrant, tech-driven cultural economy. Through such developments the Kingdom is strategically pushing modernisation of entertainment through advanced immersive technologies.

Saudi Arabia Virtual Reality Industry Segmentation

The report titled “Saudi Arabia virtual reality market report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Offering

  • Hardware
  • Tethered HMD
  • Standalone HMD
  • Screenless Viewer
  • Software
Key Insight: The hardware segment is dominating the Saudi Arabia virtual reality market growth fuelled by rising demand for immersive user experiences, particularly through tethered head-mounted displays (HMDs), which offer high-fidelity visuals for gaming and simulation. Standalone HMDs are also witnessing rapid uptake due to their portability and user-friendly setup, while screenless viewers provide an affordable entry point into VR. Meanwhile, the software segment is expanding across education, healthcare, and enterprise. Government-led digitisation and tech investments continue to accelerate growth across all offerings.

Market Breakup by Application

  • Gaming
  • Media and Entertainment
  • Retail
  • Healthcare
  • Military and Defense
  • Others
Key Insight: The gaming segment leads the Saudi Arabia virtual reality market due to robust investment in esports and immersive content, driven by youth demand and Vision 2030’s digital entertainment agenda. Media and entertainment benefit from rising VR use in interactive concerts, virtual cinemas, and theme parks like Qiddiya. Meanwhile, in retail, virtual showrooms and customer engagement tools are transforming digital commerce experiences. Healthcare adoption is accelerating through VR-based surgical training, mental health therapy, and rehabilitation. Lastly, the military and defence sector use VR for combat simulation and tactical training.

Saudi Arabia Virtual Reality Market Share

By offering, hardware segment dominates the market growth

Hardware is gaining significant traction in the Saudi Arabia virtual reality market owing to the introduction of advanced mixed-reality devices by global tech leaders. A major example is Microsoft's launch of HoloLens 2 in May 2023, which reinforced this trend, offering enterprise-grade mixed reality supported by cloud and AI. The device enabled immersive training, real-time collaboration, and operational efficiency across sectors like healthcare, manufacturing, and education. Such innovations are mainly backed by Saudi Vision 2030 and are stimulating demand for high-performance immersive hardware across the kingdom.

Software is witnessing the fastest growth rate in the Saudi Arabia virtual reality market, resulting from the national-level metaverse integration promoting multi-sector VR adoption. Saudi Arabia’s government-led launch of the world’s first national-level Metaverse platform in February 2024 reflected a centralised approach through which the state actively enabled VR and mixed-reality adoption in areas like healthcare, education, tourism, and entertainment. Backed by Vision 2030, this integration aims to diversify the economy, boost digital engagement, and create innovation-driven growth across industries, further contributing to the increasing demand for VR software.

By application, the gaming segment amasses the largest revenue

The gaming application holds the largest share of the Saudi Arabia virtual reality market, majorly attributed to the increasing availability of strategic financial investment and strong government-backed support. Massive funding from institutions like the Social Development Bank empowers local studios to innovate and scale. In March 2025, Lobah invested USD 12 million to expand its game development and publishing platform. Furthermore, increased financing for VR companies and technology initiatives highlights the Kingdom’s commitment to its National Gaming and Esports Strategy, thereby fuelling segment growth.

Virtual reality is picking up pace in the healthcare applications driven by the advanced medical innovation and the integration of virtual reality (VR) in medical education. Hospitals are increasingly adopting VR for surgical simulation, remote consultations, and immersive medical training. Citing an example, in 2023, the King Faisal Specialist Hospital & Research Centre (KFSHRC) incorporated VR in medical education and expanded its Virtual Care Centre, serving over 180,000 patients, a significant 1800% increase since 2021. KFSHRC's pioneering use of VR shows how immersive technologies are enhancing patient care, clinical precision, and medical workforce development across the Kingdom.

Competitive Landscape

Saudi Arabia virtual reality companies are actively supporting Saudi Arabia’s Vision 2030 by introducing cutting-edge VR solutions tailored for key sectors such as gaming, education, healthcare, and tourism. They are partnering with local organisations and government-backed entities to deliver immersive experiences through advanced headsets and content platforms.

Major firms operating in the Saudi Arabia virtual reality market are making strategic investments focused on enhancing localisation, Arabic-language VR content, and accessibility through both high-end and affordable standalone devices, enabling widespread adoption among tech-savvy consumers and institutions.

Additionally, many Saudi Arabia virtual reality companies are expanding their presence in the Kingdom by establishing regional partnerships, participating in mega events like LEAP, and engaging in pilot programmes within smart city projects such as NEOM. Efforts include setting up developer ecosystems, offering VR software development kits (SDKs), and collaborating with universities for research and training.

Meta Platforms, Inc

Meta Platforms, Inc., formerly known as Facebook, Inc., is a prominent American technology company specialising in social media, digital communication, and immersive technologies. The California-based company was established in 2004 and is widely recognised for its platforms like Facebook, Instagram, and WhatsApp. Meta has positioned itself at the forefront of metaverse development, aiming to create interconnected virtual environments for work, play, and social interaction.

Sony Group Corporation

Sony Group Corporation is a globally renowned Japanese multinational conglomerate founded in 1946, which is engaged in electronics, gaming, entertainment, and financial services. The company has a significant presence in the global virtual reality market through its PlayStation VR systems, offering virtual reality gaming experiences to millions worldwide.

Lenevo Group Ltd

Lenovo Group Ltd. is a Chinese-American multinational technology company known for its computing hardware, smart devices, and enterprise solutions. Since its incorporation in 1984, Lenovo has ventured into the virtual reality space with products like the Lenovo Mirage and ThinkReality platforms, catering to both consumer and enterprise applications across key nations, including the Saudi Arabia virtual reality market.

Samsung Electronics Co. Ltd.

Founded in 1969 and headquartered in South Korea, Samsung Electronics Co. Ltd. is a global leader in electronics, semiconductors, and smart device manufacturing. In the virtual reality segment, Samsung has played a pioneering role with devices such as the Samsung Gear VR, developed in collaboration with Oculus. With a diversified technology portfolio, Samsung remains a key player in the VR ecosystem.

Other prominent players in the market include 3D System Corp., HTC Corp., Apple Inc., Eon Reality Inc., among others

Key Highlights of the Saudi Arabia Virtual Reality Market Report:

  • The growth trajectory of the Saudi Arabia virtual reality market is mapped using historical adoption patterns and reliable forecasts through 2034, offering data-driven insights across consumer entertainment, enterprise solutions, education, and immersive training applications.
  • Highlights innovation in product offerings such as VR-based simulations, cloud-integrated headsets, and AI-powered immersive content, aligning with demand for digitisation, localisation, and interactive experiences.
  • Provides in-depth profiling of leading domestic and international VR players, examining strategies in hardware localisation, content partnerships, and skill development initiatives.
  • Identifies emerging regional hubs such as Riyadh and NEOM, fuelled by Vision 2030, smart city projects, and rising youth engagement in technology.
  • Offers a data-backed perspective on market size, adoption rates, and ecosystem evolution, supporting investment decisions and long-term digital infrastructure planning.

Table of Contents

1 Executive Summary
1.1 Market Size 2024-2025
1.2 Market Growth 2025(F)-2034(F)
1.3 Key Demand Drivers
1.4 Key Players and Competitive Structure
1.5 Industry Best Practices
1.6 Recent Trends and Developments
1.7 Industry Outlook
2 Market Overview and Stakeholder Insights
2.1 Market Trends
2.2 Key Verticals
2.3 Supplier Power
2.4 Buyer Power
2.5 Key Market Opportunities and Risks
2.6 Key Initiatives by Stakeholders
3 Economic Summary
3.1 GDP Outlook
3.2 GDP Per Capita Growth
3.3 Inflation Trends
3.4 Democracy Index
3.5 Gross Public Debt Ratios
3.6 Balance of Payment (BoP) Position
3.7 Population Outlook
3.8 Urbanisation Trends
4 Country Risk Profiles
4.1 Country Risk
4.2 Business Climate
5 Middle East and Africa Virtual Reality Market Analysis
5.1 Key Industry Highlights
5.2 Middle East and Africa Virtual Reality Historical Market (2018-2024)
5.3 Middle East and Africa Virtual Reality Market Forecast (2025-2034)
6 Saudi Arabia Virtual Reality Market Analysis
6.1 Key Industry Highlights
6.2 Saudi Arabia Virtual Reality Historical Market (2018-2024)
6.3 Saudi Arabia Virtual Reality Market Forecast (2025-2034)
7 Saudi Arabia Virtual Reality Market by Offering
7.1 Hardware
7.1.1 Historical Trend (2018-2024)
7.1.2 Forecast Trend (2025-2034)
7.1.3 Breakup by Type
7.1.3.1 Tethered HMD
7.1.3.2 Standalone HMD
7.1.3.3 Screenless Viewer
7.2 Software
7.2.1 Historical Trend (2018-2024)
7.2.2 Forecast Trend (2025-2034)
8 Saudi Arabia Virtual Reality Market by Application
8.1 Gaming
8.1.1 Historical Trend (2018-2024)
8.1.2 Forecast Trend (2025-2034)
8.2 Media and Entertainment
8.2.1 Historical Trend (2018-2024)
8.2.2 Forecast Trend (2025-2034)
8.3 Retail
8.3.1 Historical Trend (2018-2024)
8.3.2 Forecast Trend (2025-2034)
8.4 Healthcare
8.4.1 Historical Trend (2018-2024)
8.4.2 Forecast Trend (2025-2034)
8.5 Military and Defense
8.5.1 Historical Trend (2018-2024)
8.5.2 Forecast Trend (2025-2034)
8.6 Others
9 Market Dynamics
9.1 SWOT Analysis
9.1.1 Strengths
9.1.2 Weaknesses
9.1.3 Opportunities
9.1.4 Threats
9.2 Porter’s Five Forces Analysis
9.2.1 Supplier’s Power
9.2.2 Buyer’s Power
9.2.3 Threat of New Entrants
9.2.4 Degree of Rivalry
9.2.5 Threat of Substitutes
9.3 Key Indicators of Demand
9.4 Key Indicators of Price
10 Competitive Landscape
10.1 Supplier Selection
10.2 Key Global Players
10.3 Key Local Players
10.4 Key Player Strategies
10.5 Company Profiles
10.5.1 Meta Platforms, Inc.
10.5.1.1 Company Overview
10.5.1.2 Product Portfolio
10.5.1.3 Demographic Reach and Achievements
10.5.1.4 Certifications
10.5.2 Sony Group Corporation
10.5.2.1 Company Overview
10.5.2.2 Product Portfolio
10.5.2.3 Demographic Reach and Achievements
10.5.2.4 Certifications
10.5.3 Lenevo Group Ltd.
10.5.3.1 Company Overview
10.5.3.2 Product Portfolio
10.5.3.3 Demographic Reach and Achievements
10.5.3.4 Certifications
10.5.4 3D System Corp.
10.5.4.1 Company Overview
10.5.4.2 Product Portfolio
10.5.4.3 Demographic Reach and Achievements
10.5.4.4 Certifications
10.5.5 Samsung Electronics Co. Ltd.
10.5.5.1 Company Overview
10.5.5.2 Product Portfolio
10.5.5.3 Demographic Reach and Achievements
10.5.5.4 Certifications
10.5.6 HTC Corp.
10.5.6.1 Company Overview
10.5.6.2 Product Portfolio
10.5.6.3 Demographic Reach and Achievements
10.5.6.4 Certifications
10.5.7 Apple Inc.
10.5.7.1 Company Overview
10.5.7.2 Product Portfolio
10.5.7.3 Demographic Reach and Achievements
10.5.7.4 Certifications
10.5.8 Eon Reality Inc.
10.5.8.1 Company Overview
10.5.8.2 Product Portfolio
10.5.8.3 Demographic Reach and Achievements
10.5.8.4 Certifications
10.5.9 Others

Companies Mentioned

  • Meta Platforms, Inc.
  • Sony Group Corporation
  • Lenevo Group Ltd.
  • 3D System Corp.
  • Samsung Electronics Co. Ltd.
  • HTC Corp.
  • Apple Inc.
  • Eon Reality Inc.

Table Information