Virtual Tour Market Expected to Reach $17.9 Billion by 2035

According to a new report published by Allied Market Research, titled, “Virtual Tour Market," The virtual tour market was valued at $0.96 million in 2023, and is estimated to reach $17.88 billion by 2035, growing at a CAGR of 27.9% from 2024 to 2035.

A virtual tour is a digital simulation of a physical location, typically consisting of a series of images or videos arranged to create a seamless navigational experience. Users can explore the simulated environment in real-time or pre-recorded format, often with interactive features such as clickable hotspots or informational overlays. Virtual tours provide a remote and immersive way to experience places without being physically present.

Advancements in virtual reality (VR) and augmented reality (AR) technologies have significantly surged the demand for virtual tour experiences in the Virtual Tour industry. VR and AR technologies offer unprecedented levels of immersion and interactivity, allowing users to explore virtual environments with astonishing realism. With VR headsets becoming more affordable and accessible, consumers are increasingly seeking out immersive experiences that transport them to different places without leaving their homes. Thus, the presence of increased sense of engagement with advancement in technologies fuels the demand for virtual tour market trends across various industries, including travel, real estate, education, and entertainment.

Moreover, AR technologies enable users to overlay digital information onto the real world, creating interactive and informative experiences. In virtual tours, AR enhances the user experience by providing contextual information about landmarks, historical sites, or properties in real-time. This blend of virtual and physical worlds opens new possibilities for engaging and educational tours, appealing to a wide range of audiences. As VR and AR technologies continue to evolve and improve, the demand for virtual tours is expected to grow further, driving innovation and expansion in the virtual tour market.

However, high initial setup costs serve as a significant restraint on the virtual tour market demand. The technology required to create immersive virtual tours, including specialized cameras, software, and VR/AR equipment, may be highly expensive for many businesses and individuals. These upfront costs pose a barrier to entry, particularly for small businesses or independent professionals looking to adopt virtual tours as part of their marketing or sales strategies. Moreover, the complexity of the setup process often requires specialized knowledge or expertise, further increasing the investment required.

In addition, high setup costs deter potential users from exploring virtual tour solutions, limiting the virtual tour market growth. Businesses may hesitate to invest in virtual tour technology due to concerns about the return on investment (ROI) and the uncertainty surrounding the adoption rate among their target audience. Similarly, individuals may be reluctant to purchase VR/AR equipment or pay for virtual tour services if they perceive the initial costs as too high relative to the perceived benefits. As a result, the virtual tour market may experience slower growth and adoption rates, as cost considerations become a primary factor influencing purchasing decisions, which is expected to slower the growth of virtual tour market share. 

Furthermore, rise in disposable income of middle-class population and the zeal to explore unique virtual destinations has led to the emergence of new destinations in and outside the country. Travelers prefer to spend hefty amounts of money on traveling to new places to immerse themselves in the local culture, thereby adding meaningful and memorable experiences to their virtual tours. Many developing regions such as Asia-Pacific, the Middle East, and Africa are developing their tourism and real estate industry growth potential to attract more travelers. State or province government individually support the development of the state tourism sector, which is expected to contribute to the growth of the virtual tour market size during the forecast period.

The Virtual Tour Market Analysis is done on the basis of type, application, and region. On the basis of type, the market is categorized into 360 virtual tour, 3D virtual tour, and virtual reality tour. By application, it is segregated into tourism, real estate, art gallery & museums, and others. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, Malaysia, and rest of Asia-Pacific), Latin America (Brazil, Argentina, Colombia, and rest of Latin America), and Middle East and Africa (GCC, South Africa, and rest of Middle East and Africa).

By type, the 3D virtual tour segment dominated the global virtual tours market in 2023 and is anticipated to maintain its dominance during the forecast period. 3D virtual tours are experiencing rapid growth in the virtual tour market due to their ability to provide immersive and interactive experiences. Unlike traditional 2D images or videos, 3D tours allow users to navigate through spaces from multiple angles, providing a realistic sense of presence. This immersive nature enhances engagement and enables potential buyers or visitors to explore properties, venues, or destinations in detail without physically being there. In addition, advancements in technology have made 3D tours more accessible and cost-effective, driving their adoption across various industries such as real estate, tourism, education, and entertainment.

By application, the tourism segment dominated the global virtual tours market in 2023 and is anticipated to continue the same trend during the forecast period, as virtual tours offer travelers the opportunity to explore destinations from the comfort of their homes, appealing to those who seek immersive experiences without the constraints of physical travel. In addition, virtual tours provide an accessible platform for promoting lesser-known destinations and cultural heritage sites, expanding the reach of tourism marketing efforts. Moreover, the COVID-19 pandemic accelerated the adoption of virtual travel experiences as travel restrictions and safety concerns have limited traditional tourism activities, further driving the demand for virtual tours in the tourism sector.

Region-wise, North America is anticipated to dominate the market with the largest share during the forecast period. The region has a mature technology infrastructure and a high level of digital adoption, providing suitable ground for the development and adoption of virtual tour solutions. In addition, North America has many leading virtual reality and augmented reality technology companies, driving innovation and growth in the market. Moreover, the diverse industries in the region, including real estate, tourism, and education, have incorporated virtual tours as a means of enhancing customer engagement and improving operational efficiency, further contributing to dominance of North America in the virtual tour market.

The major players operating in the global virtual tours market are Pan 3Sixty, MI 360, 360 Pano VR Solutions Private Limited, 360 Imagery, Exsight 360, Blue Raven Studios, Invision Studio, Inc, Starts360, TourVista, and Eye Revolution Ltd.

KEY FINDINGS OF STUDY 

• By type, the 3D virtual tour segment was the highest revenue contributor to the market in 2023.
• By application, the tourism segment was the largest segment in the global virtual tour market during the forecast period.
• Region-wise, Asia-Pacific was the highest revenue contributor in 2023.