February 21, 2024
Virtual Reality in Gaming Market

The Virtual Reality In Gaming Market Is Driven By The Proliferation Of 5G Technology

Virtual reality in gaming allows players to experience an entirely immersive digital world and fully interact with their virtual gaming environment through head-mounted displays and motion tracking controllers. VR in gaming offers unmatched realism, perspective, and presence that elevates the gaming experience well beyond traditional 2D or 3D formats. As game developers continue to enhance graphics and augment player interactions, VR provides the platform for truly next-level gaming. The global market for VR games is witnessing a rapid proliferation of titles across genres like action/adventure, racing/flying simulator, puzzle, and horror. VR arcades are emerging as a new entertainment trend that allows social interaction among players through co-located VR experiences.

The global Virtual Reality in Gaming Market is estimated to be valued at US$ 15895.59 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the primary trends enabling the growth of virtual reality in gaming is the proliferation of 5G technology. 5G networks provide significantly higher bandwidth and lower latency compared to predecessor technologies which allows for seamless high resolution VR experiences with reduced motion sickness. As 5G deployment continues worldwide, it will strengthen the necessary network infrastructure for wireless VR gaming on standalone headsets. Another significant trend is the increasing affordability and availability of VR hardware. Major headset manufacturers like Oculus and HTC are expanding production capacities and optimizing design to drive down prices and make VR more accessible to mainstream audiences. As the installed base of VR headsets increase, more game developers are incentivized to create exclusive high-quality VR titles. Emerging technologies like brain computer interfaces are also being explored to enhance immersion levels through novel interaction methods based on thought control. Such technological advancements will pave the way for VR gaming to transition from an early adopter niche to a widespread consumer technology.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low in the Virtual Reality in Gaming market as significant capital investment is required to develop VR games and there exist strong economy of scale advantages for existing players.

Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have multiple options available from major players in the market.

Bargaining power of suppliers: The bargaining power of suppliers is low as there exist many input suppliers and suppliers do not have considerable influence on players.

Threat of new substitutes: The threat of new substitutes is low as there are no close substitutes for VR gaming experience presently.

Competitive rivalry: The competitive rivalry is high among existing players to gain market share and leverage new technologies.

Key Takeaways

The Global Virtual Reality In Gaming Market Demand is expected to witness high growth. The global Virtual Reality in Gaming Market is estimated to be valued at US$ 15895.59 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030.

Regional analysis : The Asia Pacific region is expected to witness the fastest growth in the virtual reality in gaming market during the forecast period supported by increasing gamer population and rising investments in VR technologies by players in the region.

Key players : Key players operating in the virtual reality in gaming market are Oculus VR, Sony, HTC, Ubisoft, Samsung Electronics, Valve, Microsoft, Nintendo, Electronic Arts, Facebook and Google. Oculus VR generated significant revenue in the market supported by launch of Oculus Rift CV1 and development of content for VR platforms.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it