Virtual Reality, spurred by renewed immersive opportunities, will reach 90 million total device shipments by 2027

NEW YORKApril 28, 2022 /PRNewswire/ — After years of slow but steady growth in limited use cases, Virtual Reality (VR) faces a market explosion over the next five years. Consumer interest in VR games and media continues to grow following the accelerated activity of COVID. At the same time, the need for employee empowerment and immersive content in enterprises remains high. According to the global technology intelligence company ABI researchmore than 90 million Head Mounted Display (HMD) shipments by 2027 will drive the total revenue of the VR market to more than 95 billion dollars in the same year for hardware, software and services.

“The virtual reality market is no stranger to false starts, with recognizable VR efforts dating back to the 1980s and 1990s. While the technology was never bought, the increased capacity of VR hardware was combined with, perhaps, Most importantly, the demand for immersive content in many markets is a great opportunity,” says Eric Abbruzzese, Director of Research at ABI Research. “While the intense focus on metaverse is partly responsible for this increase, opportunities on the shorter and smaller scale are driving expected growth.

Among the devices, stand-alone HMDs make up the most shipments according to forecast, with 79 million shipments expected in 2027, at a CAGR of 40%. Tethered and mobile-based VR devices make up the rest, with tethering favored for consumer gaming and business simulation and training. Of these shipments, consumer shipments make up 80% of the total. Education accounts for 16% of total shipments, but is growing fastest at a CAGR of 88% through 2027. Other business markets do not account for a significant portion of shipments. But will grow significantly in some areas. Location-based and transportation and automotive will both grow at over 80% CAGR through 2027.

Meta’s Quest 2 remains the most popular VR device, stand-alone or otherwise, having set a record by all accounts in 2021. Sony’s PSVR2 has been confirmed and will target an impressive PlayStation 5 installer base that has also set records despite a shortage to offer. Apple has a planned headset that may launch in 2022, while Meta has also confirmed a new standalone device. Pico (recently acquired by Bytedance) and DPVR are worth checking out on the affordable side, and Pimax is pushing capabilities at the high end. Mobile devices, such as the now-abandoned Samsung Gear and Google Daydream, are still present in the market, albeit limited. The low cost and accessibility of these devices remain valuable and will still be treated as an option against the dominant standalone form factor.

“Hardware, software and services need to align with perceived value and demand for a new technology like VR to thrive. So far this has only happened in silos and on a small scale, like VR gaming, but cross-market investment and Demand is now being met, the need for immersive visualization tools can only grow, and without the once-conspicuous gaps in enabling technology capabilities or value to users, the way forward is promising – not just in small segments but across ecosystems,” concludes Abbruzzese.

These findings come from ABI Research’s Virtual Reality Market Data: Devices, Verticals, and Value Chain report. This report is part of the company’s Augmented and Virtual Reality research service, which includes research, data and ABI Insights. Market data spreadsheets are composed of in-depth data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.

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SOURCE ABI research

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