State of Immersive Techs 2023

The VR/AR market in 2023

The VR/AR market in 2023 is witnessing significant growth and expansion. The combined AR and VR market is projected to generate revenue of approximately $32.1 billion in 2023, with an expected annual growth rate of 12.60% from 2023 to 2028​​.

In the specific segment of augmented reality (AR), the market size was valued at $38.56 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 39.8% from 2023 to 2030​​. Another projection estimates the AR market size to increase from $29.84 billion in 2023 to $174.47 billion by 2028, marking a CAGR of 42.36% during this period​​. Furthermore, it's expected to expand from $62.75 billion in 2023 to a staggering $1,109.71 billion by 2030, exhibiting a CAGR of 50.7%​​.

Regarding virtual reality (VR), the market size was estimated at $59.96 billion in 2022 and is projected to grow at a CAGR of 27.5% from 2023 to 2030​​. Another report values the VR market at $19.44 billion in 2022 and predicts growth from $25.11 billion in 2023 to $165.91 billion by 2030, which corresponds to a CAGR of 31.0%​​.

Additionally, the AR and VR software market specifically is expected to rise from $14.5 billion in 2023 to $65 billion by 2033​​. The AR and VR display market, a crucial component of the overall ecosystem, is projected to grow from $1.8 billion in 2023 to $8.2 billion by 2028, with a CAGR of 35.6%​​.

VR Headsets Market in 2023

In 2023, the VR headset market has shown significant growth compared to previous years. According to IDC, approximately 13.9 million VR headsets were expected to ship in 2022, marking a 26.6% increase from the previous year. Sales were projected to surpass 20 million units in 2023, with a continuous increase in global volume in the VR headsets segment of the consumer electronics market forecasted between 2023 and 2028 by an additional 5.5 million pieces, or 25.28%​​.

The Black Friday sales in 2023 further highlight this growth, with VR headset sales increasing by 33% over the same sales period of the previous year and VR headset revenue rising by 17%. These sales were primarily driven by significant discounts on products like the Meta Quest 2 headset​​.

The global virtual reality headset market size, valued at USD 7.77 billion in 2022, is expected to grow at a compound annual growth rate (CAGR) of 30.6% from 2023 to 2030. This growth is attributed to the extensive application of virtual reality technology in sectors like retail and manufacturing​​.

Furthermore, in 2022, around 12.5 million consumer VR headsets were sold, with the VR headset market share increasing by 46.9%. The global VR headset market experienced more than 240% growth in the first quarter of 2022 alone. Notably, Meta dominated the VR headset market, capturing 90% of its share​​.

VR/AR by Industry

In 2023, various industries are increasingly utilizing virtual reality (VR) and augmented reality (AR) technologies:

• Healthcare: VR is revolutionizing healthcare through training, allowing practitioners to simulate operations and familiarize themselves with hospital environments without stress. It's also used in cognitive behavior therapy for patients with phobias and anxieties​​.

• Entertainment: The entertainment industry has been a pioneer in adopting VR, especially in online and console gaming, cinemas, and theme parks, providing immersive, movie-like adventures​​.

• Automotive: VR aids car manufacturers in analyzing road scenarios and car behavior, helping develop new car models and smart cars​​.

• Education: VR shows promise in education, providing professional training for adults and interactive educational games and field trips for younger students​​.

• Space & Military: These sectors use VR for training in dangerous environments, reducing risks and helping soldiers prepare for battlefield conditions​​.

• Architecture: Architects use VR to visualize and experience the spaces they design before they are built, enabling real-time modifications for better customer satisfaction​​.

• Digital Marketing: VR enhances marketing experiences, like showing customers how products would look in their homes or creating empathetic messages for nonprofits​​.

• Occupational Safety: VR simulates workplace hazards, allowing workers to learn effective response strategies without risk​​.

• Social Science and Psychology: VR helps patients embody different perspectives and can positively impact future social interactions​​.

• Tourism: VR offers virtual tours of hotels, landmarks, and restaurants, helping tourists to "try before they buy" their holiday experiences​​.