The virtual reality market is set to be worth more than five times its current value within five years as more users invest in head-mounted displays (HMDs) to experience games and other entertainment.

This is according to Reportlinker, which projects the market to grow at a compound annual growth rate of 33.47% between 2018 and 2024, driving the virtual reality (VR) market value from $7.9bn to $44.7bn.

This will be driven by increased investment and the growing availability of affordable HMDs that offer improvements on current VR headsets.

However, while VR adoption is set to grow, it will not do so equally across the world. Instead, the Asia-Pacific region will be the biggest driver in growth, with users in Japan, India and China more readily embracing the technology than in the west.

Virtual reality market to be restricted by technological limitations

While the virtual reality market growth is set to be impressive over the next few years, the sophistication of the technology will remain a key limiting factor to its overall development.

The current era of virtual reality headsets only began in 2012, when Oculus Rift creator Palmer Luckey launched the first development version of the headset on Kickstarter.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Since then development has been rapid, with a number of key players emerging, however the technology remains relatively young, and there is still room for considerable advancements.

Over the next five years, limitations around the latency of displays – a vital factor for immersion – and the range of movement afforded to users will remain a barrier to more widespread adoption, preventing the market from growing more rapidly.

Reportlinker also anticipates some health concerns around the use of HMDs, which could constrain adoption.

However, other factors will improve the rate of adoption. Notably, the increased availability of quality software will encourage greater adoption, particularly as cloud-based services increase the options available to users.

Read more: Virtual reality bumper cars take VR entertainment to the next level