The Nordic VR market is projected to grow at a CAGR of 31.13% during the forecast period to reach US$550.283 million by 2027, from US$82.523 million in 2020.
A virtual headset is a head-mounted device that immerses the user in virtual reality. VR headsets are commonly used in video games and also by actors and trainers. A stereoscopic head display (with various images of each eye), stereo sound, and sensory tracking sensors, such as gyroscopes, accelerometers, magnetometers, or formal light systems, are all included. Game tracking sensors and game controls are included in some VR headsets. Head tracking technology is used in VR glasses, which change the field of vision as a person rotates his or her head. It gives a completely focused feeling. To produce a functional 3D image, the VR headset uses Organic Light-Emitting Diode (OLED) or Liquid Crystal Display (LCD) screen and head movement tracking sensor. This sensor detects head movement and generates a 3D image with a field of view of up to 360 degrees.
One of the key reasons driving the Nordic VR headset market during the forecast period is the rising popularity of esports gaming in Nordic nations. The introduction of AR and VR into the gaming sector is expected to boost market development. The entertainment and sports industries have reaped significant benefits from virtual reality technology. Shooter games are popular in the Nordic region, with up to 60% of the esports audience saying they have seen them before and allocating more than half of their esports consumption time. In addition, the VR headset market is likely to be driven by rising smartphone penetration and increased technological awareness in the Nordics region.
The high cost and time of developing VR headsets and accessories, on the other hand, is expected to slow the market's development over time. The quality of visual effects supplied by VR headsets, on the other hand, is a key concern. When a VR system is too slow to react to head movement, the user suffers from a concussion. In addition, VR headsets can extend a single display over a wide area, resulting in a larger display. During the forecast period, all of these limitations are projected to limit the growth of the VR headset market.
Key Developments
The China-based VR technology start-up, NOLO, has chosen Nordic's Bluetooth Low Energy general-purpose multiprotocol System-on-Chip (SoC) to offer wireless connection for its 'NOLO Sonic VR' in September 2021. Varjo, a Finland-based VR company, introduced a new generation of human-eye quality VR headsets in 2020 for corporate, medical, design, and engineering applications. It also received €45.9 million in funding to expand abroad. From March 2021, MeetinVR's platform will be available through the Oculus Store, allowing many more individuals to use MeetinVR's strong collaboration features with no effort. Oculus VR released its next-generation Rift S VR headset in March 2019, which features inside-out tracking and a higher-resolution screen than its predecessor.
By type, the Nordic VR headset market is segmented into low-end, medium-range, and high-end devices. The high-end device segment had the biggest revenue share, which is likely to continue throughout the projection period. Large corporations frequently use high-end equipment to give better service to their consumers and staff.
By end-users, the Nordic VR headset market is segmented into media and entertainment, hospitality, education, and others. A significant factor projected to fuel the growth of the Nordics virtual reality headset market is increasing demand from various end-user sectors such as healthcare, gaming, automotive, and others. The media and entertainment sector accounts for most growth during the forecast period as VR is projected to help gaming, location-based entertainment, theatres, and music. The evolution of the esports and gaming sector propels growth in most Nordic regions. In addition, the use of virtual reality technology at events as part of a marketing strategy to reach the widest possible audience is predicted to boost the virtual reality headset industry.
By geography, the Nordic VR headset market is segmented into five regions Norway, Sweden, Denmark, Finland, and others. Household penetration of streaming video services is at 78 percent in Norway, Denmark, Sweden, and Finland, compared to 66 percent across Western Europe. However, Finland will have the highest market growth in 2021, with a 7.4 percent year-over-year gain, while Sweden and Norway will grow at around 6%, and Denmark will expand at around 5%.
COVID-19 Insights
Due to temporary shutdowns of multiple industries and lockdowns imposed throughout several regions, the COVID-19 outbreak impacted various businesses' operations. However, due to the need for businesses to continue their activities online during the epidemic, VR technology has seen a boom in demand. For attending meetups to establish various policies and plans for their ongoing operation, companies have resorted to virtual platforms. It is also becoming a highly promising tool for virtual events because it helps with planning. By hosting the event on a virtual platform and presenting it as a VR experience, event organizers provide individual guests with engaging and plentiful event experiences. More than one-third of all Nordic consumers were first exposed to esports during the epidemic, resulting in a significant increase in esports awareness and viewership in the Nordic countries. As a result, the growing popularity of virtual events is boosting market growth.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market size value in 2020 | US$82.523 million |
| Market size value in 2027 | US$550.283 million |
| Growth Rate | CAGR of 31.13% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Million |
| Segments covered | Type, End-User Industry, And Geography |
| Regions covered | Norway, Sweden, Denmark, Finland, Others |
| Companies covered | Varjo, Osgenic, Adverty, Pikseli Arcade, MeetinVR, Oculus VR, LLC, HTC Corporation, AUKEY, Sony Corporation, SAMSUNG |
| Customization scope | Free report customization with purchase |
Key Market Segments