Virtual Reality Software in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD6181Revenue
$996.0m
Past 5-Year Growth
Profit
$XXX.Xm
Employees
1,942
Businesses
181
Wages
$XXX.Xm
Virtual Reality Software in the US industry analysis
The Virtual Reality (VR) Software industry has soared in recent years thanks to the technology becoming more accessible and affordable across markets. Technological advancements have caused a climb in the user base of VR devices, which has fueled demand for sophisticated, interactive VR software. While the gaming and entertainment sector remains the main driver, VR's adoption in industries like education, healthcare and workplace training has catalyzed the industry's growth. In addition to the integration of artificial intelligence (AI) with VR, the industry is booming with activity and potential. Through the end of 2024, industry revenue has climbed at a CAGR of 34.7% to reach $996.0 million in 2024, including an expansion of 16.6% in 2024 alone.
Trends and Insights
- Virtual reality is transforming the gaming sector. Major technology companies are allocating resources toward developing VR games and devices, attracting investment and bolstering the VR software industry.
- VR content creation is in high demand. Industries ranging from real estate to healthcare are adopting it for diverse applications, meaning there's a growing need for specialized, high-quality VR content.
- Talent in the Southeast is drawing VR companies. This region is becoming a hotspot for VR innovation thanks to prestigious universities churning out skilled graduates and fast-growing tech hubs in cities like Atlanta and Raleigh.
- Creating unique, innovative VR experiences continues to be a tall order for industry newcomers. The challenge lies in outshining established competitors, many of which have deep pockets and vast resources.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 34.7 % over the past five years, to reach an estimated $996.0m in 2024.
Trends and Insights
Gaming and entertainment markets propel growth
- Virtual reality has proven dynamic for the gaming and entertainment industry, creating a ripple effect on the VR software industry. High-resolution VR software provides immersive gaming experiences that captivate gamers' interest and capital.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The integration of AI and VR
- AI can analyze users' behavior in the VR environment and adapt the experience to their preferences, creating personalized, more engaging experiences. A customized user experience will enhance user engagement levels, boosting industry growth.
Biggest companies in the Virtual Reality Software in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Meta Platforms, Inc. | 307.1 | -2,684.0 | -874.1 | |
Epic Games, Inc. | 19.8 | -6.5 | -33.1 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Software Development Kits, Cloud-Based Services and VR Content Creation. Software Development Kits is the largest segment of the Virtual Reality Software in the US.
Trends and Insights
Riding the Virtual Wave: Several factors drive demand for VR content creation
- VR content creation involves developing immersive and interactive 3D environments. High-quality content is essential for user engagement, driving repeat usage and customer loyalty.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Smartphone App Developers in the US
- Tour Operators in the US
Complementors
- Video Games in the US
- Real Estate Sales & Brokerage in the US
International industries
- Software Publishing in Canada
- Software Publishing in Australia
- Software Publishing in the UK
- Software Publishing in Germany
Table of Contents
About this industry
Industry definition
The Virtual Reality Software industry involves companies developing software and related products to offer users an immersive experience within a 3D digital environment. The industry includes applications for gaming, training, simulations and various other interactive experiences. These companies use advanced technologies like computer graphics, motion tracking and sensory feedback to create realistic and engaging virtual worlds.
What's included in this industry?
Software development kitsCloud-based servicesVirtual Reality content creationCompanies
Meta Platforms, Inc.Epic Games, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
Mixed Reality (MR)Immersive TechnologyHaptic FeedbackRoom ScaleIndustry Code
NAICS 51121 - Virtual Reality Software in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Virtual reality is transforming the gaming sector. Major technology companies are allocating resources toward developing VR games and devices, attracting investment and bolst...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
VR content creation is in high demand. Industries ranging from real estate to healthcare are adopting it for diverse applications, meaning there's a growing need for speciali...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Talent in the Southeast is drawing VR companies. This region is becoming a hotspot for VR innovation thanks to prestigious universities churning out skilled graduates and fas...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Creating unique, innovative VR experiences continues to be a tall order for industry newcomers. The challenge lies in outshining established competitors, many of which have d...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Meta, the company behind Facebook, has pioneered the Virtual Reality (VR) industry with its Oculus headset and platforms. They are investing heavily in developing the "Metave...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Meta Platforms, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Epic Games, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Meta Platforms, Inc., and factors influencing its performance in the industry
- Description and key data for Epic Games, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
R&D investment can supercharge VR tech and pull in loyal customers. Spending more on developing cutting-edge VR tech can result in superior products that keep consumers hooke...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Diversifying into enterprise solutions and specialized sectors like healthcare and education gives VR businesses a nice profit boost. Offering high-value applications and exp...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Virtual Reality Software in the US industry in United States in 2024?
The market size of the Virtual Reality Software in the US industry in United States is $996.0m in 2024.
How many businesses are there in the Virtual Reality Software in the US industry in 2024?
There are 181 businesses in the Virtual Reality Software in the US industry in United States, which has grown at a CAGR of 31.5 % between 2019 and 2024.
Has the Virtual Reality Software in the US industry in United States grown or declined over the past 5 years?
The market size of the Virtual Reality Software in the US industry in United States has been growing at a CAGR of 34.7 % between 2019 and 2024.
What is the forecast growth of the Virtual Reality Software in the US industry in United States over the next 5 years?
Over the next five years, the Virtual Reality Software in the US industry in United States is expected to grow.
What are the biggest companies in the Virtual Reality Software in the US market in United States?
The biggest companies operating in the Virtual Reality Software market in United States are Meta Platforms, Inc. and Epic Games, Inc.
What does the Virtual Reality Software in the US in United States include?
Software development kits and Cloud-based services are part of the Virtual Reality Software in the US industry.
Which companies have the highest market share in the Virtual Reality Software in the US in United States?
The company holding the most market share in United States is Meta Platforms, Inc..
How competitive is the Virtual Reality Software in the US industry in United States?
The level of competition is moderate and steady in the Virtual Reality Software in the US industry in United States.
