New Study Projects VR Revenues to Reach $19 Billion by 2029

LOS ANGELES, October 9, 2025: ARtillery Intelligence has released a new report that projects VR revenue to grow from $12.2 billion in 2024 to $18.9 billion in 2029 – a 9.12 percent compound annual growth rate. Entitled VR Global Revenue Forecast, 2024-2029, the report examines VR revenue totals and subsegments, including consumer and enterprise spending.

Enterprise spending (hardware and software) is driven by immersive training, design collaboration, and other ROI-driven use cases. Consumer spending is meanwhile led today by gaming, but broadening over time to other categories such as entertainment, fitness, and communications.

To that end, VR’s biggest accelerant is Meta’s ongoing investments. Quest 3 and 3s remain aggressively competitive in price – a central piece in Meta’s longer-term strategy to accelerate adoption through loss-leader pricing. Meta is also investing heavily in R&D to advance VR’s capabilities and consumer appeal. These moves have collectively won the company a 67 percent market share in unit sales.

“Meta dominates the VR competitive landscape by offering the best price-to-quality ratio,” said ARtillery Intelligence Chief Analyst Mile Boland. “Heavy investing in Meta Reality Labs emboldens that position, while Meta sacrifices margins for market share to get more people into VR – pursuant to its DNA to drive towards network effect.”

VR Global Revenue Forecast: 2024-2029

The Bad News

But it’s not all good news. Aggregate VR sales have slowed in the first half of 2025 as the market approaches a saturation point for VR ownership, relative to its current demand. VR demand has also shifted to some degree to smart glasses, as shown in Meta’s past few quarterly earnings. Other device classes siphoning demand from VR include screen-mirroring display glasses from VITURE and Xreal. All the above will cause a down year for VR in 2025. However, sales are projected to rebound in 2026 and accelerate through 2029. Meanwhile, a slight quarter-over-quarter revenue jump is projected in Q4 of this year, driven by the standard holiday inflection that past Quest variants have enjoyed.

Elsewhere in the competitive landscape, growth is evident for Bigscreen, given the demand anticipation and positive reviews around its Beyond 2 headset. Signs indicate explosive growth in the device’s initial market entrance, but questions remain if that demand has or will plateau at a demand ceiling. Valve Index has meanwhile maintained a relatively small but committed user base, which could surge from a replacement cycle stimulated by the long-awaited Valve Deckard. Lastly, Sony has endeavored to turn around waning PSVR2 sales by broadening its appeal through compatibility with gaming PCs that let users access a broader range of titles.

In the end, Meta still carries a considerable edge, due to its loss-leader pricing, R&D investment in its Reality Labs division, and a richer content ecosystem. Speaking of which, content and software-based trends are likewise driving the VR market, including growth in in-app purchases (IAP).

“Meta’s growth in user payment volume is driven by in-app purchases, while Gorilla Tag has exceeded $100 million in lifetime in-app purchases,” said Boland. “This trend towards IAP will follow patterns historically seen in adjacent sectors such as mobile gaming. As VR gradually attracts mainstream users, free-to-play games will grow in usage share, while in-app purchases grow in revenue share.”

Report Availability

VR Global Revenue Forecast, 2024-2029 is available to ARtillery PRO subscribers, and more can be previewed here. This report follows ARtillery Intelligence’s separate examination of mobile AR and headworn AR spending (including Apple Vision Pro projections).

About ARtillery Intelligence

ARtillery Intelligence chronicles the evolution of spatial computing, otherwise known as AR and VR. Through writings and multimedia, it provides deep and analytical views into the industry’s biggest players, opportunities, and strategies. Products include the AR Insider publication and the ARtillery PRO research subscription. Research includes monthly narrative reports, market-sizing forecasts, consumer survey data, and multimedia, all housed in a robust intelligence vault. Learn more here.