by Virtual reality in gaming refers to immersive games played in three-dimensional, computer-simulated environments using VR headsets. It enables users to interact with simulated environments in a more seamless manner through immersive visual and audio effects. Popular virtual reality gaming genres include racing, adventure, combat, puzzles, and exploring. The global gaming industry has witnessed rising adoption of virtual reality technology, mainly driven by opportunities for content creation. Game developers are increasingly focusing on developing high-quality virtual reality games to enhance player experience and engagement.
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 Dynamics
Rising demand for immersive virtual reality content from players has prompted many game developers and publishers to invest in developing virtual reality games across popular genres. Major players are focusing on creating fully interactive virtual environments and stories for games. For instance, VR games based on popular film and television franchises allow players to step inside the fictional world and interact with characters and environments. This is expected to further accelerate content creation in the virtual reality gaming market over the forecast period.
High Sense of Immersion – Virtual reality gaming provides a much higher sense of immersion to players by surrounding them in three-dimensional computer simulated environments. This helps generate higher engagement levels as players feel truly present inside virtual worlds. The compelling sensory experiences delivered through VR contribute to longer gameplay and higher spends on virtual reality games compared to traditional formats. This growing immersiveness is anticipated to strengthen market growth through the forecast period.
Segment Analysis
The virtual reality in gaming market can be segmented into hardware and software. The hardware segment dominates the market currently accounting for over 60% share. This is because for VR experience specialized hardware components like VR headsets, VR glasses are necessary which are currently expensive. Some of the popular VR headsets used for gaming include Oculus Rift, HTC Vive, PlayStation VR etc. The software segment is expected to witness higher growth in the forecast period as more VR compatible games are developed and availability of affordable hardware increases user base.
PEST Analysis
Political: Regulations regarding graphic content in VR gaming vary across countries which can impact market. For e.g. certain games may not be allowed in some countries.
Economic: Rising disposable incomes is driving demand for premium experience like VR gaming. However high hardware costs currently limits mass adoption.
Social: Younger population is more open to adopt new technologies. Social VR gaming is gaining popularity allowing players to interact and play virtually.
Technological: Advancements in areas such as low-power chips, improved displays, positional tracking are enhancing VR experience for gaming. 5G rollout will help reduce latency issues in online VR gaming.
Key Takeaways
The global Virtual Reality in Gaming Market Demand is expected to witness high growth in the forecast period driven by falling hardware prices and increasing number of VR compatible games. 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.
Regionally North America dominates currently due to early technology adoption. Asia Pacific is expected to grow at fastest pace led by countries like China and Japan.
Key players operating in the virtual reality in gaming market are Oculus VR (Facebook), Sony, HTC, Valve, and AMD. Oculus VR dominates the VR gaming device market with its Oculus Rift and Quest headsets that are power efficient and provide good immersive experience. Sony PlayStation VR headset has also witnessed growing popularity since its launch. HTC Vive and Valve Index provide room-scale VR experiences for gaming but require installation of base stations. AMD and other chipmakers are also working on VR optimized processors and graphics cards to enhance performance of VR devices.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
