Research company GlobalData predicted VR hardware would account for a larger proportion of the sector’s overall revenue by 2030, as it backed vendors including Meta Platforms, HTC and Pico to overcome challenges around cost and health concerns.

GlobalData expects overall revenue to grow at a CAGR of 26 per cent, rising from $11 billion in 2023 to $57 billion by 2030. It anticipates the proportion generated by software to remain dominant despite falling slightly from 61 per cent to 59 per cent, with hardware’s share forecast to rise from 39 per cent to 41 per cent.

Analyst Shabnam Pervez expects VR software demand to be fuelled by advances “in content creation and the development of more immersive experiences”.

Falling hardware costs will ultimately “make VR headsets more accessible to a broader audience”, Pervez stated, though GlobalData emphasised the price of equipment is still a barrier to adoption, with products typically retailing for between $200 and $1,000.

Pervez also highlighted continued pressures involving developing “compelling and diverse VR content”, explaining there have been few truly captivating experiences to date and it is “not always easy” to deliver “lasting value”.

VR players also face some health concerns involving eye strain, headaches and motion sickness: GlobalData argued addressing these is “crucial” to the long-term viability of the technology.

Pervez noted HTC and Pico are following Apple’s lead in terms of developing or launching mixed reality (MR) products, though backed Meta Platforms to continue marketing any devices it makes in the field as VR because “it has invested so much” in the technology.

The ability to blend virtual with real worlds means MR could find uses in areas including design, education and healthcare, GlobalData explained.