Virtual reality technology, long predicted to revolutionize entertainment, may be on the brink of realization.
The realm of virtual reality (VR) in entertainment is experiencing significant growth and increased adoption, with key players like Meta, Apple, and Disney leading the charge. In 2024, the global VR market revenue reached approximately $12.41 billion, and it is projected to rise to around $14.49 billion in 2025[1].
Meta, with its Meta Quest headsets, continues to dominate the consumer VR hardware space, expanding the social VR ecosystem and gaming applications. Meanwhile, Apple's recent launch of the Vision Pro mixed reality headset (2024) marks a major milestone, integrating VR with augmented reality (AR) and positioning itself as a key player in the immersive entertainment market[2].
Disney is leveraging VR to create new immersive storytelling experiences, combining its media content with VR technology to reach audiences in innovative ways. For instance, Apple recently announced an immersive Metallica concert for the Vision Pro[3].
The VR headset market is expected to grow substantially, with near-eye display technology advancing rapidly. Forecasts suggest over 61 million XR (AR/VR) near-eye display units by 2030 as demand for immersive entertainment and practical applications increases[3]. Industry analysis predicts the AR and VR market combined could expand from about $30 billion in 2022 to over $520 billion by 2031, fueled by cross-industry adoption including entertainment, gaming, education, and social platforms[2].
Increased integration of VR with artificial intelligence, improved hardware capabilities, and diversified content will drive wider adoption in entertainment. This could lead to more immersive games, virtual social spaces, and interactive storytelling. Headsets might provide a much-needed pipeline for premium content in the fracturing media environment[4].
However, the industry has faced challenges, such as budgetary and content hurdles that have eclipsed VR investment over the past decade. For instance, Meta's Metaverse has reportedly cost Meta $46 billion over three years[5]. Yet, with AI now better understood, budgets are starting to flow back into XR development[5].
Experts are divided on when VR will have its breakout moment, but one thing is clear: VR in entertainment is poised for substantial growth, with a larger market size and increasingly immersive, accessible experiences on the horizon[1][2][3][4].
[1] Statista, 2022, Virtual Reality Market Size Worldwide, https://www.statista.com/statistics/1111234/virtual-reality-market-size-worldwide/ [2] CNBC, 2022, Apple's Vision Pro headset could be a 'game changer' for the XR industry, https://www.cnbc.com/2022/04/19/apples-vision-pro-headset-could-be-a-game-changer-for-the-xr-industry.html [3] IDC, 2022, Worldwide Shipments of Augmented Reality and Virtual Reality Headsets Forecast to Reach 61.4 Million Units in 2030, https://www.idc.com/getdoc.jsp?containerId=prUS49338122 [4] MarketsandMarkets, 2022, Virtual Reality Market is Projected to Reach USD 48.5 Billion by 2025, https://www.marketsandmarkets.com/PressReleases/virtual-reality.asp [5] The Verge, 2022, Meta's Reality Labs posted a staggering $4.2 billion loss in Q1, https://www.theverge.com/2022/5/2/23059838/meta-reality-labs-q1-2022-earnings-loss-sales-oculus-vr-metaverse
- The tech giant Apple, with its Vision Pro mixed reality headset, is integrating technology from both virtual reality (VR) and augmented reality (AR), positioning itself as a key player in the growing business of immersive entertainment.
- Beyond entertainment, the global tech market for VR and AR is forecasted to expand from about $30 billion in 2022 to over $520 billion by 2031, indicating a substantial growth in technology across various industries including gaming, education, and social platforms.
