5G Virtual Reality (Vr) Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Device Type (Head Mounted Display, Gesture Control Device, Projector, Others), By Technology (Non-immersive, Semi-immersive, Fully Immersive), By End User (Consumer, Commercial, Industrial), And By Geography - Forecasts From 2024 To 2029

The 5G virtual reality (VR) market is poised to grow to US$118.120 billion in 2029 from US$2.184 billion in 2022 at a CAGR of 76.84%.

GROWTH DRIVERS

The growing gaming industry has provided new growth prospects for the market.

Industrial technological adoption is on the rise and as the demand for modern concepts for fulfilling the desired requirements is increasing, the investment in innovations such as cloud, Artificial Intelligence, and AR/VR will also rise. Major sectors such as healthcare, military, and gaming among others are majorly employing new simulations such as virtual reality in their operations, and as the end-users witness bolstering growth, the demand for such accessories is poised for an upward trajectory.

According to the 2023 annual report of the German Games Industry Association, in 2022, the sales of gaming console accessories inclusive of VR headsets stood at € 284 million which signified a 3.3% increase over 2020’s sales figure. Moreover, the same sources showcased the total gaming accessories revenue reached € 3,489 million in Germany, thereby representing a 14% growth over the 2020 figure.

Likewise, major economies such as the USA hold high potential for market growth fueled by the booming 5G penetration and time spent on gaming. According to the Entertainment Software Association, in 2023, nearly 212.6 million, or 65% of the US population spend one hour on average playing video games, and virtual reality headsets account for 10% of the devices used for gaming.

Additionally, the development of mobile-based virtual reality games followed by strategic collaboration has paved the way for future market expansion since the demand for new consoles and efforts to provide innovative gaming experiences is showing constant expansion. For instance, in January 2024, Wizard of Coast formed a partnership with Resolution Games for the development of the world’s officially licensed “Dungeons & Dragons” game based on virtual reality.

EMERGING OPPORTUNITIES FOR 5G IN THE VR MARKET

• COMMERCIAL AND CONSUMER

End-user-wise, the 5G virtual reality market is analyzed into consumer, commercial, and industrial, where the commercial user is set to account for a considerable share of the market fuelled by the high applicability in the gaming, healthcare, and telecommunication sectors. Moreover, investments in the establishment of private 5G networks and VR headsets by enterprises to ensure that applications perform mission-critical processes are acting as an additional driving force behind the segment growth.

For instance,

• In January 2024, Apple announced that its “Vision Pro” will be available at the company’s all US stores from February. The product has revolutionized the way people collaborate, work, and enjoy entertainment since it combines the physical world with digital concepts thereby offering an effective spatial experience for the users.
• In October 2022, Bharti Airtel launched its first VR-immersive 5 G-powered advertisement format on its “Airtel Thanks” app that would offer an immersive ecosystem for brands to engage with their customers. The 5G network would ensure life-like 3D visuals are available without any lag. The company has collaborated with major conglomerates namely PepsiCo and SonyLiv to create and show a demo of the product at IMC (Indian Mobile Congress).

The industrial end-user is projected to show constant growth during the forecast period which is attributable to the growing emphasis on virtual training across industry verticals such as military & defense and government. Likewise, the retail consumer will also grow at a constant rate fuelled by rapid urbanization and improved disposable income

GEOGRAPHICAL PRESENCE

Geography-wise the 5G virtual reality market is segmented in the Americas, EMEA, and Asia Pacific region which houses major economies namely the USA, and China. Germany, Japan, and South Korea. The nations are implementing various strategic maneuvers to enhance their 5G connectivity, and the ongoing technological breakthroughs have complemented the overall market growth. Moreover, major network components and telecom operators are collaborating on this front. For instance,

• In February 2024, Verizon in collaboration with Ericsson successfully conducted the trial of its L4S (Low -Latency, Low-Loss, Scalable Throughput) capabilities that will use Verizon’s 5G network for solutions such as augment and virtual reality, interactive video, and remote control industrial process. The trial showcased how the content provider can adjust their rate of sending data packs which will improve the performance of urgent high-speed bandwidth applications.
• In April 2023, T-Mobile joined forces with Prism of Reality (Prism VR) to integrate the latter’s VR headsets into T-Mobile’s 5G network which would enable teachers and students across the US to have interactive sessions for Maths and Science that can close the STEM gap. As per the collaboration T-Mobile 5G will be connected to “Meta Quest VR” headsets across 11 rural districts in Michigan.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Qualcomm Technologies, Inc., LG Uplus Corp, and NVIDIA Corporation among others. The product offerings of the major corporation include the following:

Segmentation:

• By Component
  • Hardware
  • Software
  • Services
• By Device Type
  • Head Mounted Display
  • Gesture Control Device
  • Projector
  • Others
• By Technology
  • Non-Immersive
  • Semi-Immersive
  • Fully Immersive
• By End-User
  • Consumer
  • Commercial
  • Industrial
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others