The virtual reality (VR) technology brings a new multi-sensory interactive experience to users with a high degree of immersion, generates emerging service formats, empowers the upgrading of traditional industries, and provides high value-added, high-level, and diversified services to society. This study outlines the VR industry chain and the development trends of key technologies, and analyzes the prospects, methods, and scenario classification of the integration of VR and the service industry. The study reveals the development trends and major challenges of China's VR industry in terms of industrial chain supply, application implementation, industry standards, and professional talent cultivation. Furthermore, we propose the following recommendations: (1) strengthening investment in basic research and development, focusing on breaking through core technical difficulties; (2) cultivating leading pilot projects to create demonstration platforms; (3) building a supporting service system to create a sound industrial development environment; and (4) increasing efforts in talent training and international cooperation to enhance China's competitive advantages in the global arrangement of the VR industry, thereby accelerating the intelligent, interactive, and customized development of the service industry.