Virtual Reality In Manufacturing Market Size, Share & Industry Analysis, By Deployment Type (On-premise and Cloud), By Product Type (VR Headsets, VR Gears, and Others (VR Simulation software)), By Application (Product Design and Development, Safety and Training, Quality Control and Maintenance, Collaboration and Simulation, and Others (Floor Planning)), and Regional Forecast, 2024 – 2032

The global virtual reality in manufacturing market size was valued at USD 4.50 billion in 2023. The market is projected to grow from USD 5.69 billion in 2024 to USD 38.93 billion by 2032, exhibiting a CAGR of 27.2% during the forecast period.

The global virtual reality in manufacturing market showcases dynamic growth, driven by rapid technological advancements and increasing demand for immersive solutions. VR technology allows the user to immerse in a computer-generated environment using a combination of headsets, physical surroundings, and other equipment that simulates presence.

The COVID-19 pandemic significantly impacted this market, accelerating the adoption of VR technologies as companies focused on maintaining productivity. Furthermore, growing investment and budding start-ups backed by strong investment bolstered demand for VR technology in the manufacturing sector.

In 2024, there is a growing interest in applying VR technology to highly automated production lines, with strong demand for VR-driven training and product development solutions.

IMPACT OF GENERATIVE AI

Leveraging Technological Advancements in Production to Spur Market Growth

AI is the key market driver, creating a perceptive revolution across manufacturing by hitching a large amount of data engendered throughout the production lifecycle. AI algorithms extract meaningful insights, forecast outcomes, and optimize operations. Furthermore, advanced technological revolutions such as PowerAI in Robotics, Augmented Reality (AR), and (VR) enable real time visualization, enhanced VR training, troubleshooting problems, contextual information, and dynamic task accomplishment. The integration of AR and VR offers dynamic task completion and real-time insights, streamlining operations and enhancing decision-making across the production lifecycle. As the manufacturing sector evolves, it is leveraging these technological advancements to empower production and robotics.

MARKET DYNAMICS

Market Drivers

Extended Production Capabilities Through VR to Propel Market Growth

VR technology in the manufacturing industry has extended the potential of the workers by developing ergonomically fit products and floor plans, reducing downtime and enhancing productivity. Virtual reality in manufacturing could improve factory floor planning, particularly in the machine placements on assembly lines, through the use of VR headsets and smart glasses. It helps eliminate issues such as tool availability, shelve planning, overall equipment effectiveness, and providing better services for the shop floor workers to overcome productivity challenges. Thus, during the forecast period, these advancements are likely to shape the dynamics of manufacturing and support virtual reality in manufacturing market growth for businesses in the long-term.

• For instance, in August 2024, Jeh Aerospace, a precision aerospace manufacturing and Gridraster, a spatial AI and Extended reality solution provider has announced a strategic partnership to transform aerospace manufacturing through integration of spatial AI, augmented reality ar and virtual reality vr technologies to training, inspection, and work assistant use in manufacturing.

Market Challenges

Economic Downturn and Decline in Product Sales Impact Market Growth in Short Term

While VR has been available since the 1990s, post-pandemic shifts toward virtual solutions, particularly for learning and simulation, has increased user acceptance. However, the post-pandemic economic downturn across the globe has caused a decline in investment and a decline in user acceptance due to the complexity of integrating virtual reality into manufacturing technology. These factors prominently affected the sales of VR headsets and tools across various industries, causing economic uncertainty for businesses in the short term.

• For instance, according to data, Meta Reality Labs, a AR VR technology development firm, reported USD 3.7 billion in its third quarter of 2021 against USD 210 million in sales. Since early 2022, the business has reported approximately USD 25 billion.

Market Opportunities

Enhancing Product Capabilities Through VR is Creating Ample Opportunities for Key Players

Virtual reality technology in manufacturing shows promising growth potential due to hefty investments in product development that enhance product capabilities for manufacturing firms operating in dynamic, product-based markets. Virtual reality in manufacturing systems helps design more aesthetic and appealing products that are easy to recognize, creating a unique brand identity. Additionally, virtual reality in manufacturing simulations helps remote collaboration between teams, enabling them to virtually assemble products and enhance their designs, reducing the reliance on physical prototypes. These growing end-user demands are expanding the market share of key players in virtual reality in manufacturing sector.

• For instance, Kion Group, a prominent industrial equipment supplier is using IC.IDO virtual reality tool in their product development process, allowing the organization to present industrial truck prototypes faster than ever before. 

MARKET TRENDS

Remote Collaboration & Training Capabilities is a Market Trend 

VR technology, once confined to niche markets, has now entered mainstream product lines, with businesses and manufacturers focusing on skill enhancement and simulations. This trend has propelled simulations through remote collaboration and spurred investments driven by continuous innovation and increasing end-user adoption. Manufacturer interest in VR technology continues to increase, propelled by the availability of more affordable and versatile handsets promising superior performance. Businesses are valuing the importance of VR in training, remote collaboration, and other production activities, enhancing and promoting practical, hands-on, immersive experiences for users. All such factors drive adoption trends and contribute to the potential long-term expansion of virtual reality in manufacturing market share.

• For instance, in May 2021, DPVR, a China-based VR manufacturer launched its newest virtual reality device offering with Starlink group system solution. The product is designed to overcome problems associated with tethered PC VR for group training programs.

SEGMENTATION

By Deployment Type Analysis

Cloud Technology Segment to Dominate Due to Utilization of 5G Infrastructure

By deployment type, the market is divided into cloud and on-premise deployment.

Cloud technology is set to lead the market owing to VR implementation using a private 5G network across industrial premises. The technology plays a crucial role in enabling self-assist and remote assist capabilities, requiring real-time assistance while performing complex tasks with low latency.

On-premise deployment is experiencing a stagnant growth, with steady use of PC-based VR devices for on-site training and simulation programs.

By Product Type Analysis

VR Headsets Segment Dominates Owing to Its Growing Usage in R&D Activities

As per product type, the market is categorized into VR headsets, VR gears, and others (VR simulation software).

VR headsets are dominating the product segment along with the highest CAGR due to their extensive usage in virtual workspaces that promote enhanced learning and easy visualization. Moreover, users are more inherently engaged with virtual environments, particularly in research and development which has further bolstered the adoption of virtual reality in manufacturing.

VR gears and simulation software are set to follow the trajectory of VR headset growth, driven by user-specific requirements for simulations and extended reality applications.

By Application Analysis

Product Design and Development Segment to Lead due to VR-enhanced Capabilities

By application, the market is categorized into product design and development, safety and training, quality control and maintenance, collaboration and simulation, and others (floor planning).

Product design and development is leading the application segment owing to the usage of VR-enhanced capabilities that allow for the handling of complex 3D models that require powerful computers and specific software. These VR headsets' abilities extend to potential applications within the manufacturing industry during the forecast period.

The safety and training segment is experiencing steady growth owing to the integration of VR programs in the manufacturing industry for collaboration and simulation technologies for better product development and industrial safety trainingThe demand is supported by an advanced VR-connected ecosystem that offers low latency and advanced frame rates for virtual training classrooms and simulators. These capabilities contribute to the stable growth of the virtual reality segment across safety and training as well as simulation.

Quality control and maintenance are forecasted to maintain subsequent growth as users adopt collaborative assist modules to resolve machine defects and technical problems.

Floor planning in other categories is set to debut in the market with a focus on process improvement and productivity.

VIRTUAL REALITY IN MANUFACTURING MARKET REGIONAL OUTLOOK

Asia Pacific

The Asia Pacific region is the leading by holding the largest market share showcasing robust growth owing to the optimistic adoption of VR technology for process improvement and enhanced productivity, alongside bolstered demand for advanced simulation. Additionally, prominent manufacturers' major investment in setting up virtual labs to enhance collaborative product development and skill enhancement among the workforce drives progressive growth during the forecast period.

China is set to dominate the Asia Pacific market, with extensive applications across various industries for advanced remote assistance and collaboration capabilities on the shop floor. Additionally, its technological advancements and competitive feature upgrades at minimal costs provide an upper edge in the market.

Following China, India is marking its presence in the global market with growing investment across industrial safety training and development programs. Japan and other Asia Pacific countries are also projected to maintain steady growth through sustainable investments aimed at enhancing in-house production capabilities and improving manufacturing process improvement.

All these factors promote revenue opportunities for key players in the virtual reality in the manufacturing sector.

North America

The North America region is set to remain at the forefront in the market, predominantly driven by substantial investments across advancement in technological infrastructure for innovative solutions. Industries, including aerospace and, automobile are leveraging VR potential for training and design to increase operational efficiency.

Latin America

In Latin America, there is a growing interest in virtual reality in manufacturing due to increasing industrialization, as manufacturers aim to enhance operational efficiency. The adoption of VR among food and pharmaceutical processing companies is improving process efficiency and gaining a competitive edge.

Europe

Europe is likely to showcase a steady growth in VR adoption with a strong emphasis on innovation and automation to maximize productivity and development within established manufacturers. Countries such as Germany and the U.K. are leading the implementation of VR across manufacturing facilities to improve the efficiency of the workforce.

Middle East & Africa

The VR market in the Middle East & Africa is experiencing growing substantially over the forecast period, influenced majorly by modernization and investment initiatives. As businesses focus on competitiveness and efficiency, VR technology will enhance product design and training processes.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Player's Focus on VR-Based Research and Development Projects to Reduce Training Time

VR has expanded its potential applications in the manufacturing industry in recent years. Thus, key players providing solutions and services for virtual reality in manufacturing are placing greater emphasis on enhancing product capabilities through Research and Development (R&D) projects. Furthermore, core OEM companies are upskilling their staff with advanced technology through VR, which helps reduce training time and development delays.

For instance, Toyota launched a pilot project with Reality Matters, a pilot company, to train assembly workers using the HTC Vive, focusing on teaching hand movements and IT systems operation. These advancements and initiatives have encouraged workers to improve their skills and gain advanced knowledge.

List of Companies Profiled in Virtual Reality in Manufacturing Market:

• Unity Technologies (U.S.)


• Microsoft (U.S.)


• Google (U.S.)


• Sony (Japan)


• HTC Corporation (Taiwan)


• Samsung (Korea)


• Meta (U.S.)


• EON Reality, Inc. (U.S.)


• Magic Leap, Inc. (U.S.)


• WorldViz (California)


• NextVR Inc. (U.S.)


• NVIDIA Corporation (U.S.)


• Varjo Technologies (Finland)


• DPVR (China)

KEY INDUSTRY DEVELOPMENTS:

• August 2024: Google, a leading technology group, rebranded its VR modeling tool to an open-source version of Google Blocks. The open block will be available on Steam in the upcoming month, and the OpenXR framework would allow Icosa Foundation to target a greater range of XR devices.


• July 2024: Siemens, a prominent industrial technology provider, introduced a new immersive collaboration feature in the latest update to its NX software from the Siemens Xcelerator portfolio. The feature allows users to improve collaboration through the cloud on NX and ZelX products where customers can expect more immersive electromechanical workflow and AI generative design capabilities.


• June 2024: visTable, a prominent VR software solution provider, announced possible configurations for VR App with direct compilation to planning software. The upgraded graphics hardware allows for 3D simulations of the complex and simple factory layouts with VR Glasses, achieving a refresh rate of 90Hz ideally.


• January 2024: Sony, a leading VR technology manufacturer announced a collaboration with Siemens to develop an immersive spatial content system, This system include an XR head mount display equipped with 4k high-quality micro OLED displays with a see-through function.


• September 2023: DPVR, a Shanghai-based manufacturer of VR technology, launched its VR headset, DPVR P2, aimed at innovators, edtech providers, and enterprises. The DPVR solves the user inconvenience for battery longevity and power sustainability, extending operational hours to ensure more consistent VR headset functionality.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading VR applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2025
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 27.2% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Deployment Type On-Premise Cloud By Product Type VR Headsets VR Gears Other (Simulation Software) By Application Product Design and Development Safety and Training Quality Control and Maintenance Collaboration and Simulation Other (Floor Planning) By Region North America (By Deployment Type, By Product Type, By Application, and By Country) U.S. Canada Latin America (By Deployment Type, By Product Type, By Application, and By Country) Brazil Mexico Argentina Rest of Latin America Europe (By Deployment Type, By Product Type, By Application, and By Country) U.K. Germany France Italy Spain Rest of Europe Asia Pacific (By Deployment Type, By Product Type, By Application, and By Country) China India Japan Southeast Asia Rest of APAC Middle East and Africa (By Deployment Type, By Product Type, By Application, and By Country) South Africa GCC Rest of MEA
Key Market Players Profiled in the Report	Google (U.S.), META (U.S.), HTC Corporation (Taiwan), Microsoft (U.S.), Varjo Technologies (Finland), DPVR (China), EON Reality Inc. (U.S), NextVR Inc. (U.S.), Samsung (Korea), Sony (Japan).