The global immersive VR market size was valued at USD 10.1 billion in 2024 and is projected to reach USD 34.9 billion by 2029, growing at a CAGR of 28.0% from 2024 to 2029.

Some of the key factors propelling the growth of the market globally are the increasing use of head-mounted displays (HMDs) in training and education, particularly in enterprise (manufacturing) applications; technological advancements like OLEDOS, a high-resolution display technology; and the accessibility of VR content creation tools. The software segment is expected to have a significant impact on the overall growth of the immersive VR market in the coming years. The ease of availability of immersive VR content creation tools and the need for reliable software for HMDs is driving the market growth.

Impact of AI/Gen AI on Immersive VR Ecosystem

The major use cases of Al/Gen Al in the immersive VR market are content creation, object recognition and tracking, user interaction, and intelligent virtual assistants. Al-enhanced content creation empowers the fast and easy generation of quality assets, environments, and interactions that provide more immersive and dynamic VR experiences. Al-driven object recognition and tracking boost interactivity and realism several-fold by ensuring that virtual elements fit well into the real world, which is crucial in gaming, training, and industrial applications. Besides, Al enhances user interaction with intuitive and responsive interaction through natural language processing, gesture recognition, and adaptive interfaces that enhance user engagement. Other benefits are Al-powered virtual assistants that can provide personalized aid and learn; however, their full potential is again limited because of technological and integrational challenges. Finally, spatial mapping enhanced by Al is required to develop the most immersive VR experiences since it accurately perceives and reconstructs physical environments. In this regard, spatial awareness drives applications like navigation, gaming, and training.