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A15786 | Pages: 258 | Charts: 52 | Tables: 135 |
The global virtual tour market was valued at $0.96 billion in 2023, and is projected to reach $17.88 billion by 2035, registering a CAGR of 27.9% from 2024 to 2035. The virtual tour market is primarily driven by advancements in virtual reality and augmented reality technologies, along with a rise in demand for immersive experiences and the growth of the travel and tourism industry. Moreover, the impact of the COVID-19 pandemic on remote experiences, as well as rise in e-commerce and real estate industries, has further driven the market growth.
A virtual tour is a digital simulation of a physical location, typically consisting of a series of images or videos that are arranged together to create a seamless, immersive experience. By utilizing technologies such as virtual reality (VR) or augmented reality (AR), virtual tours allow users to explore and interact with the simulated environment from a remote location. Users can easily navigate through different areas and view panoramic scenes. Virtual tours are commonly used in various industries, including real estate, tourism, education, and entertainment, offering a convenient and engaging way to showcase properties, destinations, or experiences.
New regulations regarding work in various IT/BPO firms are expected to boost the flexibility for the companies to adopt work-from-home and work-from-anywhere policies. The virtual tour market demand increased as many firms adopted work-from-home policies owing to the lockdown measures implemented during the COVID-19 pandemic to prevent community spread of the disease.
Thus, the trend of stay-at-home measures post COVID-19 pandemic resulted in opportunities for virtual tour companies to integrate new technologies and develop products and services with distinguishing features to gain a competitive edge over others. In addition, corporates and commercial real estates are extensively using virtual tours for exploring and meetings. For instance, Microsoft claimed that Microsoft Team surpassed 44 million daily active users in March 2020 as organizations increasingly used online platforms to continue their business process during lockdown. Also, Microsoft has claimed to have 320 million monthly active users in the first quarter of 2024. Thus, such factors, along with rise in awareness toward virtual events, propel the growth of the virtual tour market share.
In addition, the expansion of the travel and tourism industry has boosted the demand for virtual tours to offer immersive experiences to individuals interested in exploring various destinations. Virtual tours provide an opportunity for travelers to preview attractions, accommodations, and activities remotely, allowing them to make more informed decisions about their trips. This pre-travel exploration builds anticipation and helps travelers plan and customize their itineraries based on their interests and preferences. Moreover, virtual tours cater to the evolving desires of modern travelers who seek authentic and personalized experiences. Tourists can virtually visit iconic landmarks, museums, and cultural sites worldwide, deepening their understanding of different destinations and cultures.
Moreover, virtual tours address concerns related to accessibility and sustainability in travel by providing inclusive experiences to individuals with mobility issues and reducing the environmental impact associated with physical travel. As the travel industry rebounds from disruptions such as the COVID-19 pandemic, the demand for virtual tours is anticipated to persist, offering a convenient and complementary way for travelers to explore the world on their terms.
Furthermore, advertisements and promotions remain a vital business practice, pre-COVID, during COVID, or post-COVID, to increase awareness about products and services offered by various companies. Before the pandemic, individuals preferred to attend events physically; however, post COVID-19 outbreak, individuals were strictly restricted to stay home. Thus, virtual events and tours gained momentum during the pandemic. Similar to how individuals were restricted to attain virtual events, sponsors were left with no choice other than to organize virtual tours. Thus, sponsorship has provided material support to events or organizations, leading to the growth of virtual tour market in recent years.
Sponsorship enables virtual tour market players to virtually advertise their products and reach a large consumer base; thereby fueling the adoption of their products. Moreover, it helps to focus on consumer preference and to foster brand loyalty. Furthermore, it draws attention from existing and potential customers of a brand or company and creates a positive impact on them, thereby leading to increase in brand loyalty. Sponsors further check the past proven records of a particular event and the probability of success before they sponsor an event, as they invest in a plan and expect a positive return on the investment. The most common sponsorship is in sports, real estate, and entertainment, ranging from local to regional and international virtual tours. Thus, surge in sponsorships for virtual tours and events significantly contributes toward the growth of the virtual tour industry.
Even though the market has expanded, there are certain challenges that hinder the virtual tour market growth. Limited access to virtual reality (VR) and augmented reality (AR) equipment presents a significant restraint on the market demand for virtual tours. While VR headsets and AR devices offer immersive experiences, their adoption is hindered by their relatively high cost and limited availability. Many consumers, especially those in developing regions or with lower incomes, may lack the financial means to purchase VR/AR equipment, leading to a reduced market potential for virtual tour providers. This lack of accessibility limits the reach and impact of virtual tours, reducing their effectiveness as a marketing and sales tool.
Moreover, the complexity of VR/AR equipment and the need for technical expertise to operate them further worsen the accessibility issue for users. Even for users who can afford VR headsets or AR devices, the learning curve associated with setting up and using the equipment may act as a challenging factor and is anticipated to hamper the market growth during the virtual tour market forecast period.
There are numerous market opportunities for the virtual tour market. Virtual tours of healthcare facilities have created significant opportunities by providing innovative solutions for patient education and facility tours. These virtual tours offer patients and their families the opportunity to explore healthcare facilities remotely, gaining familiarity with the layout, amenities, and services available. By experiencing virtual tours before physical visits, patients can alleviate anxiety and better prepare for their appointments or procedures, ultimately improving their overall healthcare experience.
Furthermore, virtual tours of healthcare facilities enhance transparency and trust between healthcare providers and patients. Patients can access virtual tours from the comfort of their homes, allowing them to make more informed decisions about their healthcare options. In addition, virtual tours can serve as valuable marketing tools for healthcare facilities, attracting new patients and setting themselves apart from competitors. By leveraging virtual tours for patient education and facility tours, healthcare providers can improve patient satisfaction, increase engagement, and ultimately drive growth in the virtual tour market in the healthcare sector.
Thus, as technology continues to evolve, the development of more accessible and user-friendly tools for virtual tour creation and consumption is anticipated, lowering barriers to entry and expanding market reach. Furthermore, the integration of artificial intelligence and machine learning algorithms into virtual tour platforms holds promise for enhancing personalization and interactivity, thus enriching the user experience and driving engagement. In addition, the rising demand for virtual experiences in the wake of global events such as the COVID-19 pandemic highlights the market's resilience and potential for sustained growth. As businesses and consumers alike embrace the convenience and flexibility offered by virtual tours, the market is poised for continued expansion, with new opportunities emerging in various sectors and applications.
The virtual tours market is segmented into 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 tour market in 2023 and is anticipated to continue the same trend during the forecast period. 3D virtual tours can be created with beautiful details and a multitude of interactive options. They can be deployed on the web or packaged into apps for mobile, desktop, and other platforms. The emergence of the internet has led to intense exposure of people to social media sites. People first browse through websites, gather detailed information, and review the required product or service before making a purchase. In addition, social media such as Facebook, Twitter, and travel blogs have become a common medium for people to discuss travel plans. Consumers are experiencing the 3D virtual tour for various applications such as tourism, real estate, museums, among others.
[TYPEGRAPH]
By application, the tourism segment led the global virtual tour market in 2023 and is anticipated to maintain its dominance during the forecast period. In virtual tourism experiences, immersive VR aims to create an environment where users can fully engage their five senses, facilitating natural interactions within the virtual space. It employs a variety of output and input devices that adhere to principles of motion, ensuring a seamless and immersive virtual experience. In addition, this segment prioritizes the user's experience within the virtual simulation. Virtual tourism makes destinations accessible to millions of people across the world, who may otherwise not be able to afford to travel to them. Viewers are embracing the rise in virtual tourism destinations and the increasing quality and availability of virtual reality technology to see and experience things they never thought possible. Moreover, virtual tourism has seen a huge growth in the last few years owing to the arrival of COVID-19 pandemic.
[APPLICATIONGRAPH]
Region-wise, Asia-Pacific is anticipated to be the major shareholder during the forecast period. With an expanding population and rapidly expanding internet access, countries like China, India, and Southeast Asian nations offer a vast and diverse user base for virtual tour platforms. The widespread connectivity serves as a driver for the adoption of virtual tours across various sectors, including real estate, tourism, hospitality, and education. In addition, the region's emerging economies are experiencing rapid urbanization and industrialization, driving demand for innovative solutions such as virtual tours to showcase properties, attractions, and educational institutions to a broader audience.
Furthermore, Asia-Pacific's tech-savvy culture and thriving technology ecosystems in countries such as China, South Korea, and Japan play a pivotal role in driving the virtual tour market size. Technological expertise facilitates the development of cutting-edge virtual tour solutions, pushing the boundaries of immersive experiences and driving market growth. Moreover, the rich cultural heritage and vibrant tourism industry in Asia-Pacific attract millions of visitors annually, providing ample opportunities for virtual tours to explore historical sites, museums, and landmarks. Thus, the cultural significance further cements the region's position as a key player in the global virtual tour industry.
[REGIONGRAPH]
The key players in the virtual tour market include 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 Market Segments
Key Market Players