Virtual Tourism Market Size - By Virtual Experience, By Application, By End-User, Analysis, Share, Growth Forecast, 2024 - 2032

Virtual Tourism Market Size

The global virtual tourism market size was valued at USD 728.6 million in 2023 and is projected to grow at a CAGR of 26.4% between 2024 and 2032. The increasing demand for immersive experiences among travelers is significantly driving the market. Modern consumers seek unique and engaging ways to explore destinations without the constraints of traditional travel. For instance, according to Statista by the end of 2024, the total revenue generated from the travel & tourism sector is estimated to reach US 916 bn, which would further drive the growth of the virtual tourism market.
 

Virtual tourism provides highly immersive experiences, allowing users to virtually "step into" locations, interact with environments, and explore cultures in real-time. This appeal is particularly strong among younger generations, who value experiential learning and adventure. Consequently, virtual tours, interactive cultural experiences, and immersive storytelling are becoming popular alternatives to conventional tourism. This shift not only caters to the desire for authentic experiences but also meets the needs of those unable to travel due to constraints, ultimately broadening the market's consumer base.
 

Moreover, the widespread use of smartphones and tablets, along with increasing internet penetration, is significantly driving growth in the virtual tourism market. With billions of people owning mobile devices, virtual tourism experiences are easily accessible, allowing users to explore destinations anytime and anywhere. For instance, in March 2024, Global Times released a report on Chinese internet penetration, it reported that as of December 2023, China's internet penetration rate has reached 77.5 percent, with the total number of internet users rising to 1.092 billion.
 

This marks an increase of approximately 24.8 million users compared to the previous year, highlighting the rapid growth of internet access across the country. Enhanced internet availability improves the quality of these experiences, enabling seamless streaming of high-definition content, VR, and AR applications. As mobile technology advances, more consumers are engaging with virtual tourism platforms, making it a popular option for those seeking affordable travel alternatives.
 

Virtual Tourism Market Trends

Virtual tourism is witnessing significant technological advancements in virtual reality (VR), augmented reality (AR), and 360-degree video technologies. These innovations enable highly immersive and interactive experiences, transforming traditional tourism by allowing users to explore destinations in realistic detail. For example, VR headsets simulate real-world environments, providing sensory experiences that mimic physical travel.
 

AR enhances this by overlaying digital content onto real-world surroundings, increasing engagement and educational value. Meanwhile, 360-degree video technologies offer panoramic views, enabling users to navigate destinations at their own pace. These technologies appeal to tech-savvy consumers and open new possibilities for destination marketing, museums, and travel agencies. As these tools become more accessible and affordable, they are driving the wider adoption of virtual tourism.
 

For instance, in March 2023, at the recent G20 Summit, Atomic Loops unveiled its groundbreaking Virtual Reality (VR) technology tailored for the tourism industry. This innovative approach aims to transform how travelers experience destinations, making planning and booking more interactive and engaging. The VR technology allows users to explore various destinations in a fully immersive environment.
 

Travelers can virtually navigate through landscapes, hotels, and attractions, providing a realistic sense of place before making travel decisions. Atomic Loops' introduction of VR technology at the G20 Summit represents a significant advancement in the tourism industry, promising to redefine how travelers explore and engage with potential destinations.
 

High-speed and reliable internet connectivity remains a significant challenge for the virtual tourism market, particularly in regions with underdeveloped digital infrastructure. Virtual tourism experiences, especially those utilizing immersive technologies like VR and AR, rely on seamless streaming and real-time interactivity, both of which require stable, high-speed internet. In areas with poor connectivity, users encounter issues such as lag, buffering, and low-resolution content, which degrade the experience.
 

These challenges hinder market growth, as potential consumers, especially in rural and developing regions, cannot fully engage with virtual tours. Additionally, the cost of internet access may be prohibitive for some users, further limiting market accessibility. Addressing these connectivity issues is essential for expanding virtual tourism globally.
 

Virtual Tourism Market Analysis

Based on virtual experience, the market is segmented into 360-degree virtual tours, 3D virtual tours, and virtual reality (VR) tours. In 2023, the 360-degree virtual tours segment accounted for over 45% of the market share and is expected to exceed USD 2.5 billion by 2032. The 360-degree virtual tours segment holds the highest market share in the virtual tourism market due to its immersive and interactive nature. These tours offer users a comprehensive view of tourist destinations, landmarks, and attractions, allowing them to explore as if they were physically present.
 

The accessibility of 360-degree tours through web browsers and mobile devices, without requiring specialized VR equipment, has contributed to their widespread adoption. Additionally, tourism agencies, hotels, and cultural sites use 360-degree virtual tours to promote their services, providing a realistic and engaging experience that entices potential visitors. The visual richness, coupled with ease of integration into online marketing strategies, makes these tours a preferred tool for businesses and a popular choice for users seeking authentic virtual travel experiences.
 

Based on the end-user, the market is divided into individuals, travel agencies, educational institutions, and businesses. The individuals segment held around 47% of the market share in 2023 due to several key factors. The individual segmentation holds the highest market share in the virtual tourism market due to several factors. Virtual tourism offers an affordable and convenient alternative for those who lack the financial means, time, or physical ability to travel.
 

Advanced technologies like VR and AR enable users to explore destinations from the comfort of their homes, providing a highly immersive experience without the logistical challenges of traditional travel. Additionally, growing awareness of environmental sustainability encourages individuals to opt for virtual tours to reduce their carbon footprint. The rise in solo travel enthusiasts, coupled with pandemic-related travel restrictions, has further boosted demand from individual users. This segment's accessibility and personalized experiences attract a wide demographic, contributing to its market leadership.
 

North America region accounted for a virtual tourism market share of over 35% in 2023 and is expected to exceed USD 2 billion by 2032, driven by high technological adoption and strong demand for innovative travel experiences. The region benefits from the widespread availability of advanced virtual reality (VR) and augmented reality (AR) technologies, particularly in the U.S. and Canada.
 

Leading tech companies and startups contribute to the development of immersive virtual tourism platforms. Additionally, the region’s well-established tourism sector, combined with growing environmental and health consciousness, further propels the demand for virtual alternatives, especially in response to travel restrictions and sustainability concerns.
 

Technological advancements and increasing internet penetration are set to drive significant growth in the Asia Pacific virtual tourism market. China, Japan, and South Korea are leading the adoption of VR and AR technologies, boosting demand for immersive virtual travel experiences. Rising disposable incomes, a growing middle class, and increased interest in global travel further fuel this trend. Additionally, post-pandemic travel restrictions and safety concerns have spurred demand for virtual alternatives. Government initiatives promoting tourism through digital platforms also enhance the market's growth potential in this region.
 

Europe plays a pivotal role in the virtual tourism market, driven by its rich cultural heritage and advanced tourism infrastructure. Countries such as the UK, France, Germany, and Italy leverage technologies like VR and AR to promote their historical sites, museums, and landmarks through virtual tours. The region's strong technological adoption, supported by government initiatives to enhance digital tourism, fuels market growth. Additionally, increasing awareness of sustainable travel options and growing interest in virtual experiences among environmentally conscious European consumers further boost the demand for virtual tourism in the region.
 

In the MEA and Latin America regions, increasing internet penetration and the rising adoption of digital technologies are driving the growth of the virtual tourism market. In Latin America, Brazil and Mexico are leading the way by promoting cultural and heritage tourism through virtual platforms. Meanwhile, the Middle East, particularly the UAE and Saudi Arabia, is enhancing market potential by virtually showcasing luxury tourism destinations.
 

Virtual Tourism Company Market Share

Dubai 360, Matterport, and YouVisit collectively held a substantial market share of over 10% in the virtual tourism industry in 2023. Dubai 360 leverages advanced panoramic photography and video technology to offer immersive 360-degree virtual tours of Dubai's key attractions. By integrating high-resolution images, interactive features, and real-time updates, the platform enhances the virtual visitor experience. Additionally, it collaborates with Dubai’s tourism sector to promote both cultural and modern landmarks, supporting broader tourism marketing efforts.
 

Matterport focuses on 3D digital twin technology, enabling virtual walkthroughs of destinations with high-definition, spatially accurate experiences. Their platform integrates with VR systems to enhance user immersion and allows businesses to embed virtual tours on their websites. By partnering with tourism agencies and hospitality providers, Matterport aims to create engaging, interactive experiences to boost the appeal of virtual tourism.
 

YouVisit uses a proprietary virtual reality platform to create immersive 360-degree experiences for global travel destinations. By integrating VR and interactive media, YouVisit provides customized virtual tours that help destinations showcase unique attractions. The company also focuses on partnerships with tourism boards and travel brands, offering accessible virtual tours across multiple digital channels to drive engagement and reach.
 

Virtual Tourism Market Companies

Major players operating in the virtual tourism industry are:

• Dubai 360
• Matterport
• YouVisit
• Google Earth VR
• Real Tour Vision (RTV)
• 360Cities
• TourVista
• Blue Raven Studios
• Kuula
• Panedia
   

Virtual Tourism Industry News

• In June 2024, Khorramabad launched a virtual tourism initiative that features 360-degree views of its scenic locations. This innovative approach aims to enhance the travel experience for both locals and tourists by allowing them to explore the city's attractions from the comfort of their homes. This launch is part of a broader movement within the tourism sector to incorporate digital experiences, making travel planning more interactive and informative.
   
• In October 2023, Chennai-based startup Tour On - The Travel Company launched India's first Virtual Reality (VR) tour experience to revolutionize how customers plan and book travel. This innovative offering allows potential travelers to immerse themselves in a virtual environment, exploring destinations and accommodations before making a purchase. By utilizing 360-degree video technology and interactive simulations, Tour On aims to boost customer engagement. The VR platform provides a "try-before-you-buy" experience, enabling customers to explore hotels, attractions, and even activities in a lifelike manner.
   

The virtual tourism market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Virtual Experience

• 360-degree virtual tours
• 3D virtual tours
• Virtual reality (VR) tours

Market, By Application

• Tourism and travel
• Education and training
• Real estate
• Gaming
• Cultural and heritage sites
• Retail

Market, By End-User

• Individuals
• Travel agencies
• Educational institutions
• Businesses

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa