July 21, 2024
Virtual Reality in Gaming Market

Global Virtual Reality in Gaming Is Estimated To Witness High Growth Owing To Growing Immersive Experience Trend

The 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 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The virtual reality in gaming market mainly comprises of software and hardware products that provide virtual reality based gaming experience to the users. The key hardware products include VR headsets, VR motion controllers and VR PCs/consoles. The prominent software categories are VR games and game development programs. VR headsets allow users to experience an immersive 360-degree view of the game environment while playing VR enabled games.

Market Dynamics:

Growing demand for highly immersive gaming experiences is a key factor driving growth of the virtual reality in gaming market. VR technology enhances gaming experience by making users feel physically present in a digital environment through high-resolution graphics and spatial audio. Additionally, continuous technological advancements are enabling development of VR headsets and motion controllers with better resolution, field of view and latency response. For instance, VR headsets with inside-out tracking and all-in-one design provide ease of use without external sensors and cables. Moreover, increasing VR gaming titles and collaborations between gaming studios and headset makers are broadening content availability, thus boosting adoption of VR technology among gamers. However, high costs of VR hardware remains a major challenge which may hamper market growth.

SWOT Analysis:

  • Strength: Virtual reality gaming allows for a fully immersive experience that cannot be achieved through traditional gaming mediums. VR gaming provides players with highly realistic 3D environments and interactions. It also offers players a unique sense of presence within virtual worlds. Developers are continuously striving to enhance gameplay experiences through improved VR technologies.
  • Weakness: Poor navigation and motion controls can negatively impact gameplay experiences in VR gaming. Many users also report feelings of nausea, dizziness or disorientation from prolonged VR use. High costs associated with VR hardware also limit widespread adoption. Limited battery life and cable restrictions further hinder the mobility of VR gaming systems.
  • Opportunity: Growing interest in VR from the film and entertainment industries is expected to develop new genres and formats for VR gaming content. Social VR gaming is also emerging as an opportunity to bring players together in shared virtual worlds. The untapped China market represents significant potential for VR gaming growth given the size of the country’s online games sector.
  • Threats: Competition from technologically advanced AR and mixed reality solutions poses a threat as these newer technologies aim to provide more immersive experiences than VR alone. Dependence on powerful PC hardware or next-gen consoles limits the addressable market for many VR games. Delays in 5G rollout and infrastructure updates may hamper the development of advanced online multiplayer VR gaming experiences.

Key Takeaways:

The Global Virtual Reality in Gaming Market Demand is expected to witness high growth, exhibiting CAGR of 29% over the forecast period, due to increasing demand for immersive gaming experiences and improving affordability of VR hardware.

Regional analysis: North America currently dominates the global VR gaming market, accounting for over 30% revenue share in 2023. However, Asia Pacific is emerging as the fastest growing regional market due to high adoption rates in countries like China, Japan and South Korea.

Key players analysis: Key players operating in the Virtual Reality in Gaming market are Electronic Arts Inc., Kaneva LLC, Nintendo Co. Ltd, Avatar Reality Inc., Sony Corporation, Oculus VR, Activision Publishing Inc., and Sega Corporation. The market remains highly competitive with these companies investing heavily in new game IPs and hardware innovations.

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