According to a new report released by MarketsandMarkets, Virtual reality market will be worth a whopping $15.89 billion by 2020 at a compounded annual growth rate of 63.18 per cent between 2015 and 2020.

The growth will be seen in all virtual reality related technologies including devices (HMD, gesture tracking), components (sensor, display, software), and applications (gaming, entertainment, and industrial).

For those who are yet to get their hands dirty with virtual reality, it is an integration of hardware, software, and virtual content that is assembled to provide virtual reality experiences to users. Virtual reality is experienced by the user through devices such as head mounted displays (HMDs).

Virtual reality technology plays a crucial role in many applications such as gaming, entertainment, aerospace and defense, industrial, medical, retail and marketing, education, and others. Consumers’ demand for virtual reality devices is projected to grow rapidly in the coming five years owing to the availability of technologically advanced virtual reality devices, increased computational power of the devices, and their increasing utility in the gaming and entertainment applications.

Technology giants like Facebook, Sony, HTC Corporation, Valve, and Microsoft have all started working on their own VR products.

The report from MarketsandMarkets describes the virtual reality market trends, drivers, and challenges with respect to the global virtual reality technology market, and forecasts the market size between 2015 and 2020, segmented on the basis of technology, device, component, application, and geography.

This global report provides a detailed view of the market across the regions of North America (the U.S. and others), Europe (France, Germany, the U.K., and Rest of Europe), Asia-Pacific (Japan, China, India, South Korea, Rest of APAC), and RoW (Middle East & Africa and Latin America,).

The competitive landscape of the market shows a number of new product launches, large scale collaborations, and agreements and partnerships across the value chain, with a number of tier-one players around the globe.