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How big is the generative artificial intelligence (ai) in virtual reality market today, and what are its future growth expectations?
The generative artificial intelligence (AI) in virtual reality market size has grown exponentially in recent years. It will grow from $3.85 billion in 2024 to $5.12 billion in 2025 at a compound annual growth rate (CAGR) of 33.0%. The growth in the historic period can be attributed to the development of VR hardware, growth of the gaming industry, growth of social VR platforms, expansion of VR in education, and supportive government policies.
The generative artificial intelligence (AI) in virtual reality market size is expected to see exponential growth in the next few years. It will grow to $15.88 billion in 2029 at a compound annual growth rate (CAGR) of 32.7%. The growth in the forecast period can be attributed to increasing demand for personalized experiences, increasing computational power, increased awareness of VR technologies, increased research and development, and increasing demand for interactive entertainment. Major trends in the forecast period include developments in variational auto-encoders (VAES), emergence of neuromorphic and quantum computing, enhanced immersive experiences, advanced AI-generated NPCS, and AI-enhanced real-time world building.
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What have been the primary factors driving the generative artificial intelligence (ai) in virtual reality market’s growth?
The increasing demand for immersive experiences is expected to propel the growth of generative artificial intelligence (AI) in the virtual reality market going forward. Immersive experiences are deeply engaging environments that blend physical and virtual worlds, often through technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR), to create a sense of presence and realism for users. The demand for immersive experiences is rising with advancements in VR and AR technologies that enable more realistic interactions and the growing consumer desire for personalized, memorable experiences in entertainment and education. Generative AI enhances immersive experiences in virtual reality by creating dynamic, interactive environments and content on the fly, allowing for highly personalized and adaptive experiences that respond to user input in real-time. For instance, in November 2022, according to the Ministry of Industry and Information Technology, an executive department of the State Council of the People’s Republic of China, the Chinese government intends to increase the country’s virtual reality (VR) industry production to 350 billion yuan (US$48 billion) by 2026, a sixfold increase from the previous year. Moreover, the Ministry of Industry and Information Technology (MIIT) and four other organizations issued a guideline for setting a national sales target of 25 million VR devices by 2026. Therefore, the increasing demand for immersive experiences drives the growth of generative artificial intelligence (AI) in the virtual reality market.
What are the key segments within the generative artificial intelligence (ai) in virtual reality market?
The generative artificial intelligence (AI) in virtual reality market covered in this report is segmented –
1) By Component: Software; Hardware
2) By Application: Entertainment And Gaming; Healthcare; Education And Training; Retail And E-Commerce; Manufacturing And Design; Other Applications
3) By End-User: Enterprises; Individuals
Subsegments:
1) By Software: AI-Powered VR Content Creation Tools; AI-Driven Virtual Environments and Simulations; VR-Based AI Training and Education Software; AI-Based VR Interaction And User Experience (UX) Tools; AI-Powered Real-Time Rendering Software
2) By Hardware: AI-Enhanced VR Headsets; AI-Powered Motion Controllers; AI-Driven Haptic Feedback Devices; VR Sensors And Tracking Systems With AI Integration; AI-Based VR Processing Units
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Which key players are shaping the generative artificial intelligence (ai) in virtual reality market?
Major companies operating in the generative artificial intelligence (AI) in virtual reality market areGoogle LLC, Microsoft Corporation, Meta Platforms Inc., Siemens AG, International Business Machines Corporation, Qualcomm Incorporated, NVIDIA Corporation, Adobe Inc., Rockwell Automation Inc., Autodesk Inc., Roblox Corporation, Unity Technologies Inc., DeepMind Technologies Limited, Magic Leap Inc., Epic Games Inc., Oculus VR LLC, Cerebras Systems Inc., HTC Corporation, Matterport Inc., Synthesia Ltd., Strivr Labs Inc., Groove Jones Inc., Qualium Systems Inc., Cubix LLC
How will emerging trends drive the generative artificial intelligence (ai) in virtual reality market throughout the forecast period?
Major companies operating in the generative artificial intelligence (AI) in virtual reality market are developing advanced solutions with generative AI-powered No-Code authoring omni-platforms to streamline the creation of immersive and interactive virtual environments without requiring extensive programming knowledge. Generative AI-powered No-Code authoring omni-platforms refer to advanced software solutions that utilize generative artificial intelligence to enable users to create, design, and customize virtual environments or applications without writing code. For instance, in June 2024, ARuVR, a UK-based developer of a digital multimedia platform, launched the ARuVR GenAI Suite, a new platform designed to streamline the creation of augmented reality (AR), virtual reality (VR), and mixed reality (MR) content. It features tools for generating digital 3D models from 2D videos, crafting immersive 360° images, and designing detailed 2D visuals. Additionally, the suite includes a text-to-speech function that allows users to add customizable voiceovers with various voices and speech speeds. The GenAI Suite, which integrates with ARuVR’s No-Code authoring omni-platform, makes creating interactive training and spatial learning experiences easier.
How do regional factors impact the generative artificial intelligence (ai) in virtual reality market, and which region is the largest contributor?
North America was the largest region in the generative artificial intelligence (AI) in virtual reality market in 2024. The regions covered in the generative artificial intelligence (AI) in virtual reality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Generative Artificial Intelligence (AI) In Virtual Reality Market Report 2025 Offer?
The generative artificial intelligence (ai) in virtual reality market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Generative artificial intelligence (AI) in Virtual Reality (VR) refers to the use of artificial intelligence (AI) models that can create new content, such as environments, characters, objects, and interactions, within a VR space. This AI technology allows the VR to dynamically generate or evolve content based on user input, preferences, or real-time interactions, making the virtual experience more immersive and personalized.
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