Virtual Reality Travel Experiences Market Size, Share, Analysis, Trends, Growth, 2032

Virtual Reality Travel Experiences Industry Prospective:

The global virtual reality travel experiences market size was worth around USD 1.34 billion in 2023 and is predicted to grow to around USD 12.05 billion by 2032 with a compound annual growth rate (CAGR) of roughly 27.60% between 2024 and 2032.

Request Free Sample

Virtual Reality Travel Experiences Market: Overview

Virtual reality (VR) travel experiences are a growing market witnessing a steady rise in demand. It refers to using VR technology to promote the global hospitality and tourism sector. Virtual reality is defined as an environment created using a computer. It imitates real-world scenarios, thus allowing users to interact with the environment in real time. VR in tourism is an upgrade over the regular use of virtual reality in other industries.

For instance, instead of generating artificial environments, VR is used in the travel industry to capture real-life locations and provide users with a more engaging and immersive way of viewing these destinations. VR in travel requires the use of highly specialized software, rigs, and cameras. Another difference between VR in the travel industry and other sectors is that the former delivers engaging videos that can be viewed on a mobile device. These videos do not require a VR headset. The demand for VR in the travel industry has been growing, driven by several factors, such as a surge in travel expenditure. However, the virtual reality travel experiences industry also faces several challenges and limitations, such as high costs and competition from traditional forms of travel experiences.

Key Insights:

• As per the analysis shared by our research analyst, the global virtual reality travel experiences market is estimated to grow annually at a CAGR of around 27.60% over the forecast period (2024-2032)
• In terms of revenue, the global virtual reality travel experiences market size was valued at around USD 1.34 billion in 2023 and is projected to reach USD 12.05 billion by 2032
• The virtual reality travel experiences market is projected to grow at a significant rate due to the increased expenditure on travel worldwide
• Based on the application, the tourism segment is growing at a high rate and will continue to dominate the global market as per industry projections
• Based on the device type, the head-mounted segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period

Request Free Sample

Virtual Reality Travel Experiences Market: Growth Drivers

Increased expenditure on travel worldwide will promote a market growth rate

The global virtual reality travel experiences market is expected to grow due to the rising travel expenditure worldwide. In the last 2 to 3 years, international and domestic tourism has registered a sharp rise influenced by various factors. For instance, since COVID-19, more people have started investing in travel plans. The trend is further cemented by increased disposable income and higher awareness. In addition, budget-friendly travel promoted by the emergence of affordable stays and travel tickets is expected to influence the tourism industry during the forecast period.

According to official statistics posted by the Visa Office from the US, more than 38 million US citizens traveled outside the country across Central America, Asia, Europe, and South America. Since the global travel industry is booming, it has opened more growth opportunities for incorporating VR technology. Virtual reality can be used to showcase to potential visitors the beauty of the places that they plan to visit, further enhancing the travel experience.

Higher use of VR in the hotel industry will promote market demand during the forecast period

The hotel industry globally is investing in leveraging the benefits of virtual reality for further growth. VR is used to provide comprehensive and immersive hotel tours, thus leaving a huge impact on potential customers. Generally, VR services provided by hotels can be viewed on any device. These videos can be uploaded on social media websites for extensive promotions. Brand engagement can be increased by investing in VR-based services.

For instance, the Burj Al Arab Jumeirah Hotel in Dubai is currently offering VR roaming. It allows guests to explore all areas of the luxury hotel using VR technology. Hotel companies are also using VR to train employees, thus resulting in better service. Hilton Hotels, a leading chain of luxury hotels worldwide, has invested heavily in using VR systems for teaching empathy to its employees, thus contributing to the global virtual reality travel experiences market.

Virtual Reality Travel Experiences Market: Restraints

High cost of the technology will limit the industry’s expansion rate

The global industry for virtual reality travel experiences is expected to be restricted due to the high cost involved in developing and using the systems. It requires the use of highly advanced software and hardware tools including cameras and sensors. In addition to this, the processing of gathered information for coherent videos is highly complex and time-consuming. The addition of customized and interactive features further leads to an increase in the overall cost of deploying VR for travel.

Virtual Reality Travel Experiences Market: Opportunities

Ongoing experiments in improving VR technology will generate more growth opportunities

The global virtual reality travel experiences market is expected to generate more growth opportunities due to the ongoing advancements in VR technology. For instance, in May 2024, Meta, a leading technology company, announced the addition of Travel mode for the company’s Quest 3 and 2 headsets. Meat Quest is a range of VR headsets that allow socializing in 3D spaces. In June 2024, Freeaim, a leading London-based start-up focusing on designing wearable technology for VR, announced that it had closed a £250,000 pre-seed round. The company is expected to use the funds to increase production and consumer-level release by 2025.

In March 2024, Amadeus, a Spain-based multinational technology company, announced the development of a VR solution especially that focuses on travel agencies. The company is expected to revolutionize the booking stage using more immersive technologies. Other factors, such as increased partnerships and collaboration between VR companies and industries operating in the travel sector, will promote further market expansion during the projection period.

Virtual Reality Travel Experiences Market: Challenges

Limited adoption of VR technology among consumers is a major challenge for the market players

The global virtual reality travel experiences industry is expected to be challenged by the limited adoption of the technology among the consumer base. For instance, the lack of currently available VR systems to completely replace real-life scenarios limits the technology adoption rate. In addition to this, some people have registered motion sickness when using VR headsets. Certain research indicates that VR can become highly addictive if used irresponsibly. Traditional methods of traveling offer more engaging experiences and cannot be replaced by VR travel experiences.

Virtual Reality Travel Experiences Market: Segmentation

The global virtual reality travel experiences market is segmented based on application, product, device type, and region.

Based on the application, the global market segments are marketing professionals, the tourism industry, the hotel industry, and others. In 2023, the highest growth was observed in the tourism industry. VR has steadily made its way into delivering more enhanced traveling experiences to customers. VR is being leveraged in several ways across the global tourism sector. For instance, the rising use of VR headsets by travel & tourism companies for providing viewing experiences to remote and rare locations is a prominent trend in the industry. In 2023, the global tourism industry was valued at over USD 11.4 trillion.

Based on product, the global virtual reality travel experiences industry is divided into cloud-based and web-based.

Based on the device type, the global market segments are gesture tracking and head-mounted. In 2023, the highest growth was observed in the head-mounted segment. These devices offer several options to its customers. Head-mounted devices are highly versatile and have proven efficient in delivering expected results. Increasing development in VR headset technology will promote segmental market demand. The global VR industry was valued at over USD 60 billion in 2023.

Virtual Reality Travel Experiences Market: Report Scope

Virtual Reality Travel Experiences Market: Regional Analysis

North America to generate the highest result during the forecast period

The global virtual reality travel experiences market is expected to be led by North America during the projection period. Countries such as Canada and the US are likely to lead the regional market growth rate due to the extensive investments in the country's VR sector. The US, for instance, is home to some of the leading companies developing highly advanced VR solutions with applications across industries. Moreover, integrating Artificial Intelligence (AI) into virtual reality systems will further promote growth in North America.

Europe is expected to emerge as a leading provider of VR travel experiences. Europe is a popular tourist destination. It is frequented by millions of tourists every year from across the globe. The presence of widely popular natural landscapes across European countries along with several historic places has fueled higher interest in Europe. In May 2024, Germany-based airline carrier Lufthansa announced a partnership with Meta. The collaboration will allow the latter to provide Meta Quest 3 Mixed Reality headsets to Lufthansa's business class passengers in Allegris Business Class.

Virtual Reality Travel Experiences Market: Competitive Analysis

The global virtual reality travel experiences market is led by players like:

• National Geographic Explore VR
• VR Gorilla
• Google Earth VR
• AirPano
• Ascape VR
• Thomas Cook VR
• Expedia VR
• Littlstar
• Within VR
• Jaunt VR
• Travel World VR
• VeeR VR
• YouVisit
• XplorIt
• Realities.io.

The global virtual reality travel experiences market is segmented as follows:

 By Application

•  Marketing Professionals
•  Tourism Industry
•  Hotel Industry
•  Others

 By Product

•  Cloud-Based
•  Web-Based

 By Device Type

•  Gesture Tracking
•  Head Mounted

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa