Virtual reality market to reach $120.5 billion by 2026: Study

Virtual reality
The virtual reality market VR will soar at a 42.2% CAGR from 2018 to 2026, reaching $120.5 billion, according to a study by Fortune Business Insights. (Pixabay)
Virtual reality (VR) technology is finding its way into many applications, such as automotive, medical, and industrial. According to a study by Fortune Business Insights titled “Virtual Reality Market: Global Market Analysis, Insights, and Forecast, 2018-2026,” sales in the VR market will soar at a 42.2% CAGR during the forecast period, reaching $120.5 billion by 2026.

According to the study, VR is starting to penetrate the automotive sector. Besides integrating voice assistance, vehicles nowadays come integrated with several advanced features to offer improved driver safety.

Because virtual reality has the ability to stimulate the environment via head-mounted displays, the technology can be a useful training aid in medical applications, where VR is used to train physicians on performing procedures such as surgeries. VR can also be used to monitor patients.

RELATED: Qualcomm joins hands with Tencent in digital entertainment

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The study also expects VR to transform online learning, where education startups are investing millions to create a live learning experience.

VR’s strongest market, gaming and entertainment media, will remain strong, garnering a 40.5% market according to the study.

VR market by application
Source: Fortune Business Insights

North America is the largest VR market, accounting for 40% of global sales. The study noted that US giants such as Facebook, Google and Apple continue to focus on research and development (R&D) activities for software and hardware to further stimulate the virtual reality market share. The growth in this region is mainly attributable to the increased funding in start-ups.

The market in Europe is projected to hold a quarter share in the forecast years. Countries such as France, Germany, and France are the major contributors to the market. The study expects the VR market to grow in other regions such as Asia Pacific, Latin America, and the Middle East & Africa. 

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