Global 5G Virtual Reality Market Size, Forecast, and Trend Highlights Over 2025-2037
5G Virtual Reality Market size was valued at USD 4.7 billion in 2024 and is poised to exceed USD 294.8 billion by 2037, expanding at a 38% CAGR during the forecast period, i.e., between 2025–2037. In 2025, the industry size of 5G virtual reality is evaluated at USD 6 billion.
A few indicators influencing the 5G virtual reality market is the surging adoption of 5G smartphones across the world. This has created a sufficient user base for 5G-enable VR applications. Another supportive trend has been the expansion of gigabit Ethernet fiber networks, which offers greater opportunities for service providers along with content developers to provide high-quality VR experiences. The table below highlights recent 5G coverage trends, and the heightened deployment is a major factor propelling the market’s growth:
|
Region |
5G Coverage (%) |
Total 5G Connections (2025) |
Key Countries Leading Deployment |
|
Global |
33% of world population |
1.2 billion |
China, U.S., India, South Korea, Germany |
|
Asia-Pacific |
77% (China), 51% (India), 37% (Singapore) |
Rapid expansion |
China, India, Singapore, South Korea |
|
North America |
77% (U.S.) |
High adoption rate |
U.S., Canada |
|
Europe |
Slower rollout |
Gradual increase |
Germany, Spain, Austria |
|
Middle East & Africa |
Emerging markets |
Early-stage deployment |
UAE, Saudi Arabia, South Africa |
In terms of the trade dynamics, the U.S. Census Bureau’s data has highlighted that the imports of telecommunications equipment, such as those relevant to 5G VR totaled USD 65.1 billion in 2024, marking a 6.9% increase compared to the previous year. The exports in the category reached USD 45.2 billion, reflecting a 5.1% rise in the same year. Additionally, the assembly line for 5G VR products is embracing automation to bolster efficiency.
The market’s supply chain involves a myriad of components, from sensors, displays, software platforms, to semiconductors. The impediment of over reliance on the semiconductor sector may be detrimental as disruptions in key regions such as Taiwan can cause cascading effects on VR device production. To negate that, recent trends highlight the advent of reshoring and diversification which are poised to be at the forefront of the supply chain's evolution, ensuring a heightened flow of components required for VR device assembly.
5G Virtual Reality Sector: Growth Drivers and Challenges
Growth Drivers
- Strategic military and defense investment in 5G VR simulation technologies: A major factor driving the growth of the 5G virtual reality market is the ongoing shifts in global defense strategies. A major trend has been the rise in defense-related funding targeted at harnessing the capabilities of 5G networks to improve the realism offered by the virtual training environments. For instance, in 2024, the U.S. DoD increased its investments associated with 5G VR, to improve simulation platforms that support training as well as mission planning.
For instance, in 2024, the U.S. Department of Defense (DoD) announced an increase in investments associated with 5G VR, focusing on simulation platforms that support training and mission planning.
As military spending intensifies, leading defense contractors such as Boeing, Lockheed Martin, Raytheon, etc., have been proactive in integrating 5G VR technologies to their simulation to ensure they maintain their dominant market share. The momentum of the military adoption is set to remain steady against the backdrop of the rising geopolitical tensions for at least 10 to 15 years supported by the dual trends of rising defense budgets and advancements in 5G infrastructure. - Shift in enterprise work models driving the demand for 5G VR for improved remote collaboration: The surging investments by governments across the world on a myriad of infrastructure projects bode well for the sustained growth of the 5G virtual reality market. The critical infrastructure sectors such as healthcare, education, and urban development have attracted large-scale investments. The proliferation of 5G has laid the groundwork for the use of 5G virtual reality in mature markets. In early 2024, the U.S. FCC approved a USD 1.6 billion initiative seeking to expand 5G access and integrate VR for healthcare and education applications in rural areas. Additionally, the increased government funding from governments in Europe and North America creates opportunities for smaller firms to partner with larger corporation to expand the scope of application.
Technological Trends Impacting the Global 5G Virtual Reality Market
With the 5G technology evolving rapidly, the VR integration has transformed multiple industries across the world. A major advancement within the 5G virtual reality market is the increasing bandwidth along with lower latency bolstering instantaneous data transfer. The demand for immersive VR experience benefits from the advancements in 5G infrastructure. An ongoing trend within the market is the integration of AI algorithms to VR environments to improve the personalization for sectors such as BFSI. The table below highlights the positive impact of technological advancements on the 5G virtual reality market:
|
Technological Trend |
Impact on Industry |
Result/Statistic |
|
Low Latency & High Throughput |
Enables seamless VR experiences, especially in manufacturing |
80.5% reduction in latency for industrial simulations |
|
Edge Computing for VR Optimization |
Supports real-time VR interactions in healthcare |
40.6% faster processing in surgical simulations |
|
AI-Powered VR |
Enhances user engagement and personalization in retail & banking |
36% increase in employee engagement in training |
|
Remote Collaboration & Virtual Workspaces |
Enables global meetings and decision-making in finance & consulting |
51% increase in virtual client meetings via 5G VR |
|
Immersive Military Training & Simulation |
Enhances combat readiness and reduces live training costs |
$2.8B allocated for 5G VR military training systems |
Cybersecurity Risks in the Global 5G Virtual Reality Market
The surging integration of 5G networks with VR applications has expanded the surface area of cyberthreats. The impact is felt on numerous industries ranging from entertainment to healthcare. The threat increases due to the combination between high-volume data transmission and real-time interaction in VR environments, exposing vulnerabilities in applications. To negate the threat successfully, companies operating in the sector have adopted proactive measures such as multi-factor authentication and AI-powered threat detection to strengthen their networks. The table below indicates the impact of cyberattacks and potential remedies to mitigate the impact:
|
Company |
Cyber Attack |
Impact |
Potential Remedies to Mitigate the Impact |
|
Facebook (Meta) |
Ransomware Attack |
$10.5 million financial loss, 2-week shutdown |
AI-driven threat detection, regular vulnerability assessments, end-to-end encryption |
|
Sony Interactive Entertainment |
Phishing Attack |
Increased phishing attempts on PlayStation VR users |
Multi-factor authentication (MFA), employee cybersecurity training |
|
Qualcomm |
Data Breach |
Exposure of proprietary VR-related data |
Stronger encryption, Zero-Trust security framework, routine security audits |
|
Microsoft |
DDoS Attack |
Disruption to VR services on HoloLens platform |
Cloud-based security solutions, real-time traffic monitoring, enhanced firewalls |
|
HTC |
Supply Chain Attack |
Delays in VR headset shipments, financial losses |
Secure supply chain protocols, third-party vendor audits |
Challenges
- Scalability barriers associated with 5G-enhanced VR content delivery: With the 5G virtual market exhibiting a robust growth curve, the challenge of scaling VR experiences for mass consumption has arisen due to the complexity associated with content delivery in ultra-low-latency environments. Companies face challenges in expanding 5G infrastructure for VR applications that require high bandwidth. The constraint is amplified due to the lack of unified systems in managing 5G infrastructure along with VR hardware. Additionally, the scaling issues are rooted deeply in the mismatch between network capability and the surging data demand of VR applications.
5G Virtual Reality Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
38% |
|
Base Year Market Size (2024) |
USD 4.7 billion |
|
Forecast Year Market Size (2037) |
USD 294.8 billion |
|
Regional Scope |
|
5G Virtual Reality Segmentation
Offering (Hardware, Software, Services)
The hardware segment in 5G virtual reality market is poised to hold a leading revenue share of 40.5% in the global market by the end of 2037. The segment’s growth is positively reinforced by the surging demand for immersive experiences across a myriad of sectors. The evolutions of VR headsets in the current decade have enabled greater imitation of lifelike virtual environments. Additionally, the largest percentage of consumer adoption is reflected in the gaming sector. In terms of future outlook, lighter and more comfortable headsets are set to make VR more accessible to a broader audience.
End user (Consumer, Commercial, Industrial)
The consumer segment of the 5G virtual reality market is projected to hold a 40.8% revenue share by the end of 2037. The segment’s growth is propelled by the rising application of VR in shopping experiences. With the expansion of 5G network improving the bandwidth, and a focus on improving the shopping experience, retail companies are investing in virtual shipping environments. The virtualization has allowed consumers to browse and purchase products remotely, improving the shopping experience. Furthermore, AI-powered VR marketing and product placements with the virtual environments is expected to expand, facilitating greater investments in the VR-enabled retail space.
Our in-depth analysis of the global 5G virtual reality market includes the following segments:
|
Offering |
|
|
End user |
|
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Customize this Report5G Virtual Reality Industry: Regional Scope
North America Market Forecast
The North America 5G virtual reality market is poised to register a dominant revenue share of 35.7% by the end of 2037. The market’s leading share is attributed to a supportive regulatory ecosystem driving harmonized policies along with a growing consumer adoption of VR headsets. Additionally, the 5G infrastructure in North America has matured, bolstering resource flow optimization as companies operating in the region leverage the global supply chains to source key VR components. A demographic analysis highlights that the region’s largest VR consumption base is concentrated in metropolitan areas, creating ample opportunities of growth across the market.
The U.S. 5G virtual reality market is poised to maintain its dominant share in North America. A major driver is the 5G network expansion across the country that has created a new wave of market adoption. Additionally, the policy transmission mechanism in the U.S. has catalyzed VR adoption, potentially increasing the market size by 8% to 10% annually. The consumer behavior patterns highlight that domestic consumer base is more inclined towards personal entertainment VR, creating a lucrative segment to provide high-end VR hardware.
APAC Market Forecast
The APAC 5G virtual reality market is exhibiting the fastest expansion, rising at a CAGR of 40.2% throughout the forecast period. A major factor of the regional market's expansion is attributed to the rising reliance on immersive digital solutions across various sectors. Additionally, APAC has experienced large-scale investments on bolstering the 5G infrastructure. The region also has a burgeoning and gaming and entertainment industry, which is expected to be at the forefront of the rising demand for immersive and interactive applications.
The China 5G virtual reality market is poised to emerge as a dominant in APAC. The market’s growth is favorably impacted by the large-scale investments in 5G infrastructure as well as increasing spending on defense applications, bolstering the usage of VR for training simulation. In the China market, opportunities are slated to be rife in the deployment of VR tech for smart city development in a bid to improve the quality of urban living. Additionally, in recent trends, the convergence of 5G, AI, and VR, in China has ensured that it emerges as a leading destination for immersive technologies.
Companies Dominating the 5G Virtual Reality Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global 5G virtual reality market is poised to be remain competitive throughout the forecast period. Major players in the market, such as Meta, Sony, and Qualcomm are leading due to strategic investments as well as investments in VR R&D, such as Meta’s investment in the Oculus VR. The market is favorably impacted by the wide-scale deployment of 5G infrastructure as well as the advent of 6G. The table below highlights the major players in the global 5G virtual reality market.
|
Company Name |
Country of Origin |
Revenue Share (2024) |
|
Meta Platforms, Inc. |
USA |
28% |
|
Sony Group Corporation |
Japan |
14% |
|
Samsung Electronics |
South Korea |
10% |
|
Qualcomm Incorporated |
USA |
9% |
|
Nokia Corporation |
Finland |
6% |
|
HTC Corporation |
Taiwan |
xx% |
|
Oculus VR (Facebook Technologies) |
USA |
xx% |
|
Huawei Technologies |
China |
xx% |
|
Microsoft Corporation |
USA |
xx% |
|
LG Electronics |
South Korea |
xx% |
|
Panasonic Corporation |
Japan |
xx% |
|
Pico Interactive |
China |
xx% |
|
TCL Technology |
China |
xx% |
|
Vuzix Corporation |
USA |
xx% |
|
Realme |
China |
xx% |
Below are the areas covered for each company that is a key player in the 5G virtual reality market:
Recent Developments
- In October 2024, Meta Platforms Inc., launched the highly-awaited Meta Quest 3. The next-generation VR headset seamlessly pairs AI boosted VR experiences with 5G connectivity and is an improvement on the previous Quest 2.
- In March 2024, Qualcomm released the Snapdragon Xr2 Gen 2 chipset. The new chipset is designed for the next-generation of augmented reality and virtual reality headsets, and is able to provide improved experiences at higher speeds.
Author Credits: Abhishek Verma
- Report ID: 3441
- Published Date: Jun 02, 2025
- Report Format: PDF, PPT
