Virtual reality headset have a stereoscopic head-mounted display, which provides realistic images separately for each eye, stereo sound, and sensors for head motion tracing. Sensors used for head motion tracking are gyroscopes, accelerometers, and structured light systems, among others. Moreover, virtual reality headsets also comprises sensors for eye tracing and gaming controller.

Virtual reality helps enables users to interact with virtual environment with the help of virtual reality content including movies, videos games or a previously recorded 360-degree VR environment. Virtual reality has various applications from aiding in providing a virtual tour of the house to prospect buyers, to watching a football game in immersive augmented reality or interacting with doctors remotely. This is expected to aid in growth of virtual reality industry, in turn increasing demand for virtual reality headset devices.

Increasing demand for smartphones is one of the major driving factors for the market growth

Major factors expected to propel growth of the global VR headsets market is proliferation of mobile devices specifically smartphones, as most VR headsets rely on the smartphone to display content and use various specially developed apps for the same. For instance, Matterport VR Showcase is a virtual reality app compatible with Samsung Galaxy series (Android Kitkat 4.4+) and Oculus Gear VR app needs to be installed on the device. According to Coherent Market Insights analysis, share of headset installed base of Samsung gear VR was around 16.3% globally, and the share of mobile phone based VR headsets were about 87% globally, in 2016. Over 2.56 billion smartphone users were reported worldwide in 2016. Hence, the increasing smartphone sales are further increasing the growth of VR headsets market.

Proliferation of digital entertainment and media segment is expected to drive growth of the global virtual reality headsets market

Increasing utilization of digital entertainment and digital media is expected to accelerate global market growth. For example, film producers, professional sports leagues and associations are increasingly adopting virtual reality technology, in order to increase their customer base. For example, in 2015, the NBA Golden State Warriors experimented with NextVR technology to stream their regular-session for individuals using Samsung Gear headsets. Furthermore, music and adult entertainment segments are also adopting virtual reality technology to produce 3D contents, which is expected to increase their viewers’ base. Moreover, on-demand series providers are also adopting virtual reality technology, in order to enhance consumer experience. For example, in 2016, HBO provides virtual reality 360 degree content for famous series, Game of Thrones. Therefore, increasing demand for virtual reality technology is expected to propel growth of virtual reality headsets market in digital entertainment and media sector.

Increasing adoption of virtual reality headsets in military and defense sector is expected to be another factor for growth of the market

Demand for virtual reality headsets in military and other scientific application is increasing significantly and is a key factor expected to boost growth of the global virtual reality headsets market. This is attributed to rising need for improvement of mental and physical training program, which includes combat training, flight simulation, battlefield simulation, and vehicle simulation among others. It aids in providing better training experience to the soldiers. For instance, the United States Department of Defense adopted virtual and augmented reality to reduce its training budget. According to the U.S. Navy, it is expected to invest US$ 6 billion to US$ 6.12 billion per year for training and simulation purpose from 2016 to 2021 for virtual reality. This is, in turn, expected to aid in growth of the market over the forecast period.

Virtual Reality Headsets Market Taxonomy

On the basis of headset type, the global virtual reality headsets market is segmented into:

  • Handheld
  • Smartphones Enabled
  • PC-connected

On the basis of component, the global virtual reality headsets market is segmented into:

  • Head-mounted display
  • Stereo sound system
  • Head motion tracking sensor
  • Controllers
  • Display screen

On the basis of application, the global virtual reality headsets market is segmented into:

  • Consumer Electronics
  • Healthcare
  • Games & Entertainment
  • Automobile
  • Education
  • Real Estate
  • Military

On the basis of regions, the global virtual reality headsets market is classified into:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

Virtual Reality Headsets Market: Regional Insights

The global virtual reality headsets market is segmented on the basis of regions into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. The North America region held the dominant position in the market in 2016 and is projected to retain its dominance throughout the forecast period. The U.S. and Canada are major economies driving the growth of virtual reality content creation market in this region. High adoption of novel technologies such as virtual reality and prevalent of video gaming culture in the region especially in the U.S. have driven the growth of virtual reality content creation market. According to Coherent Market Insights analysis, the U.S. virtual reality video market was valued approximately US$ 122.8 million and the virtual reality gaming revenue was valued about US$ 276.3 million in 2016.

Global Virtual Reality Headsets Market: Key Players

Major players operating in the global virtual reality headsets market are Sony Corporation, Samsung electronics Ltd., HTC Corporation, Google, Inc., Microsoft Corporation, LG Electronics, Inc., Avegant Corporation, Facebook, Fove, Inc., and Oculus VR, LLC.

Global Virtual Reality Headsets Market: Key Developments

  • In September 2019, HTC, a Taiwanese consumer electronics company, announced that it will launch new Vive Cosmos virtual reality (VR) headset in India. It is the company's first VR headset to ship with the new Vive Reality System.
  • In August 2019, British Airways launches VR headsets to watch movies. British Airways will be bringing first customers a 3D cinema in the skies through virtual reality headsets on select flights.
  • In May 2019, Lenovo launched enterprise AR/VR headset, the ‘ThinkReality A6'. The ThinkReality A6 is a “heads-up, hands free” mobile visor that overlays 3D graphics onto real-world environments. The headset is designed specifically for the enterprise, such as for industrial workers.
  • In March 2019, Facebook announced the launch of Oculus Rift S which is the latest version of its PC-connected virtual reality headset. The new headset is the successor to the company’s original Rift headset and will include a higher resolution display, a new tracking feature called Oculus Insight and a feature called Passthrough+ that allows users to get a glimpse of their real-world surroundings without having to take off their headset.
  • In January 2018, Sony Corporation announced the launch of its PlayStation VR headset. The headset is designed to plug into PlayStation 4, rather than requiring new equipment

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users