The virtual reality (VR) market is projected to reach a value of $44.7bn by 2024, up from a value of $7.9bn in 2018, registering a CAGR of 33.5% – or five times its current value – according to research by Reportlinker.
The report has outlined that the growth will be driven by the growing availability of and increased investment in affordable head-mounted displays (HMDs) which enhance current VR headset offerings. However, the adoption of the technology will be limited by the relative youth of VR technology, since the current era of VR headsets was only introduced in 2012 with the launch of the first Oculus Rift.
The substantial growth in the market defies the criticism the technology faced last year when Digital Trends claimed that VR was dying, citing poor sales numbers across the key players in the market.
HTC, creator of the HTC VIVE headset, acknowledged that growth had been slow but hit back at the claims, stating: "More and more, as people begin to understand the possibilities for virtual applications, word of mouth will grow and sales will continue their upward trajectory."
Reportlinker also noted that users in the Asia-Pacific region are much more readily embracing the technology than the West, with Japan, India and China in particular driving the growth.