Virtual Reality Market Trends

Growth Drivers

• Government-led digital transformation initiatives: The digital transformation moves by the governments are likely to boost the sales of virtual reality solutions in the years ahead. The emerging economies are anticipated to augment the trade of virtual reality devices. China’s Five-Year Plan and India’s Digital Bharat initiative are set to double the revenues of virtual reality technology manufacturers during the foreseeable period. The education, defense, and telemedicine sectors are estimated to drive the sales of VR solutions under the national digital movement.

• Rising demand from enterprises: The increasing popularity of advanced display devices is poised to fuel the adoption of VR-enabled tools by large enterprises. The digitalization shift is also poised to increase the application of virtual reality technologies among SMEs. The U.S. Bureau of Labor Statistics reveals that companies employing immersive VR training led to a 33.4% enhancement in employee retention and up to 25.6% faster onboarding times. The high use of VR technologies is set to transform enterprise operations and boost productivity in the coming years.

Technological Innovations in the Virtual Reality Market

The technological advancements are set to double the revenues of virtual reality companies during the foreseeable period. The modernization of enterprises is accelerating the adoption of virtual reality solutions.

AL and ML Integration in the Virtual Reality (VR) Market

The integration of AI and ML is poised to boost the productivity and effectiveness of virtual reality technologies. The tech-savvy and gaming end users are set to lead the sales of AI and ML-powered virtual reality systems in the years ahead.

Challenges

• Poor connectivity infrastructure: The limited broadband coverage and incomplete 5G network deployment are hampering the sales of virtual reality technologies. The price-sensitive markets that lack robust broadband or advanced mobile networks are creating an adoption hurdle for virtual reality solutions.  The low spending power of individuals is also hampering the sales of virtual reality technologies in VR markets.
• High product cost: The high price of virtual reality solutions is limiting the applications in the budget-constrained regions. The end users with low budgets resist investing in advanced virtual reality technologies. The lack of knowledge of digital tools and devices is also poised to challenge the revenue growth of virtual reality technology producers. The industry giants are focusing on digital marketing and competitive pricing to expand their sales in these markets.