VR Gaming Market Size, Share, Industry, Forecast and outlook (2023-2030)

Global VR Gaming Market is segmented By Compatibility (Smart Phones & Tablets, Gaming Consoles, Desktops & Laptops, Others), By Type (Hardware, Software), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

VR Gaming Market Overview

The VR Gaming Market is predicted to reach a high CAGR of 40.1% during the forecast period (2023-2030). VR gaming includes the use of the three-dimensional (3D) artificial environment to computer games. VR gaming is developed by using the virtual reality (VR) technology that provides the players a truly immersive, first-person perspective of game action. VR gaming can be controlled by using the standard keyboard, mouse, keys, game controllers, touchscreen or motion capture methods. VR gaming can be played on the standalone systems, specialized game consoles, or using advanced laptops and PCs. The market is dominated by the availability of the individual virtual reality games and multi-player, online virtual reality games. These games position the players in physical combat environments and can interact with the three-dimensional environment.

VR Gaming Market Summary and Scope

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VR Gaming Market Dynamics and Trends

Increasing Demand for Advanced Gaming Consoles & Other Devices is Driving the Growth of the Market

The market is driven by the increasing demand of the advanced gaming consoles & other devices with the advanced technologies such as augmented reality (AR)/ virtual reality (VR), Internet of things (IoT), 4K and 8K resolutions, 3D graphics, cloud streaming, and others. There is growing availability of the various advanced gaming consoles such as PlayStation 4, Xbox One, Nintendo 3DS, PlayStation Vita, Xbox Series X, Nintendo Switch, and others. The increasing launch of the emerging gaming consoles & other devices shall have a positive impact on the market. For instance, in Sony Corporation would launch of PlayStation 5 in seven key markets such as the United States, Canada, Mexico, Australia, New Zealand, Japan and South Korea. Microsoft would launch the most powerful next-generation console i.e., Xbox Series X. Companies are developing the gaming consoles & other devices with the improved performance including the processing speed, higher-resolution graphics, and increased storage capacity. Companies are equipping the gaming consoles & other devices with wireless technology such as Wi-Fi, Bluetooth 5.0, and Bluetooth 6.0. There is increasing adoption of the motion sensing devices, head-mounted displays, gloves, masks, treadmills, bodysuits, backpacks, and 3D headphones for playing the virtual reality games.

Rising Funding & Investment is expected to Boost the Market Growth over the Forecast Period

Several public & private companies are raising the funding and investment for the development of the VR gaming. For instance, in October 2020, Thirdverse, the virtual reality game developer had raised the USD $8.5 million in Series A funding. In July 2020, Polyarc had closed the USD $9 million in Series B funding, led by Hiro Capital, and Galaxy Interactive. This funding would be used to expand the development focus to further embrace VR and AR games. In 2016, Polyarc had raised the USD $3.5 million to fund the development of Moss, one of the top-rated VR games. In November 2016, LIV had secured the USD $2.6 million to accelerate its revolutionary streaming technology and integrate more third-party games studios. The Series A funding round was led by Inspired Entertainment, Games Workshop, and Cherry Freeman. Market players such as Sony Corporation, AsusTek Computer Inc., and other market players are raising the investment for conducting the  research and development activities for optical gaming devices based on virtual reality technology.

Lack of Skilled Professionals to Develop the VR Gaming is hampering the Market Growth

Lack of the skilled professionals to develop the VR gaming is hindering the market growth. There is lack of the efficient designers, developers, and testers for developing the VR gaming. The skilled professionals don’t have the efficient skills such as software programming, 3D design skills, game development, video or sound production skills, and UI/UX for developing the VR gaming. Companies are facing the challenges in finding the designers, developers, and testers with the desired and right skills for VR gaming.

COVID-19 Impact Analysis on VR Gaming Market

The global VR gaming market has impetus from the COVID-19  pandemic as the sales of the VR gaming has been increased with the growing number of the users. Large number of the people are purchasing the VR gaming across the globe. There is drastic increase in the number of users for VR gaming in the countries such as the United States, Italy, Germany, India, Japan, France, and others. There is rising demand for the virtual reality software in gaming applications. Companies are developing the gaming software and content based on virtual reality technology. The market is expected to grow at the significant CAGR during this peroid as there is increase in the launch of the advanced gaming consoles & other devices shall have positive impact on the market. There is growing adoption of the smart TV, smart projector, smart remote, smart monitor, smartphones, and others in gaming.

VR Gaming Market Segmentation Analysis

Hardware Segment is Expected to hold the Largest Share in the VR Gaming Market

The VR gaming market is classified based on the component as hardware, and software. The hardware segment accounts for the highest market share of XX% in 2019. Hardware includes the physical component used for playing. There is high adoption of the hardware devices such as head-mounted devices, controllers, keyboards, gloves, headphones, bodysuits, and others. There is increasing upgradations in the VR wearables and accessories. The market is dominated by the availability of the several hardware devices such as Oculus Rift, PlayStation VR, Samsung Gear VR , and HTC Vive for VR gaming. Oculus Rift is the customizable, comfortable, and adaptable headsets developed by Oculus VR (acquired by Facebook Inc.). Oculus Rift is based on the virtual reality technology. It comprised of the precise, low-latency constellation tracking system that enables the sensation of presence. It is easy, inviting, and comfortable to use. HTC Vive is the virtual reality headset developed by HTC and Valve. It comprised of the room scale tracking technology that allows the user to move in 3D space and use motion-tracked handheld controllers to make interaction with the environment.  Sony Corporation’s PlayStation VR is a headset based on the virtual reality technology. It comprised of the 5.7 inch OLED panel with a display resolution of 1080p, processor box to enable the Social Screen video output to the television and processing the 3D audio effect.

By Connecting Device, Gaming Consoles is Expected to Witness a High Growth Over the Forecast Period

The VR gaming market is classified based on the connective devices as gaming consoles, PCs/ desktops, smartphones, and others. There are growing availability of the gaming consoles with the solid-state hard drives, backward compatibility, higher frame rates, and superior quality virtual reality support. There is increasing usage of the 3D gaming consoles based on cloud services. VR gaming consoles comprised of the plug-and-play nature, the cohesive software platform, and the built-in content library. PCs/ desktops segment is expected to have the positive market growth as the PCs/ desktops provide the most detailed virtual environments and game options. Several companies are providing the customizations for PCs/ desktops based on the users’ expectation. The experience of the VR gaming on PCs/ desktops is dependent on their Graphics Processing Unit (GPU) and the RAM incorporated. Companies are focussing on upgrading their offerings to meet the increasing demand for VR gaming.

VR Gaming Market Geographical Share

North America region holds the largest market share global VR Gaming Market   

North America region is dominating the global VR gaming market accounted for the largest market share in 2019 due to the growing adoption of the VR hardware and accessories among gamers. There is high usage of the virtual reality accessories such as motion-sensing devices, head-mounted displays, gloves, wireless controllers, and bodysuits equipped with advanced motion sensors in gaming applications. There is higher adoption of the optical gaming devices such as optical trackers, mechanical trackers, laser ranging, pattern recognition, and 3D input devices. The United States accounts for the highest market share due to the presence of the large number of companies providing the VR games. The market players are focusing on the development of the advanced VR hardware and software. For instance, in September 2018, Oculus VR (acquired by Facebook Technologies, LLC) had launched the Oculus Quest, an all-in-one gaming device based on the virtual reality technology. It supports the hand tracking technology that can be connected with the oculus mobile app. Its touch controllers can precisely recreate the hands, their gestures and interactions that makes the game real enough to reach out and touch. There is rising development of the compatible desktops, laptops, smartphones, game consoles supporting the virtual reality gaming. The growing high-speed 5G network deployment shall boost the sales of VR gaming.

Asia-Pacific region is expected to grow at the fastest CAGR during the forecast period

Asia-Pacific region is estimated to be the fastest-growing region in the global VR gaming market as the VR games are expected to be more accessible and available in upcoming years. There is growing development of the 3D audio headsets, 4K motion sensors and other technologies. The increasing internet penetration rate shall boost the demand for the VR gaming. The drastic market growth is expected to be observed in the countries such as India, Japan, South Korea, and China due to the growing acceptance of the VR gaming. There is growing technological advancements in the entertainment industry. There is increasing demand for the VR accessories and wearables. Several companies are launching the various virtual reality gaming centers with the increasing demand for the VR gaming. Zero Latency is one of India's free roam epic scale multiplayer virtual reality gaming and entertainment center launched in Lower Parel Mumbai in 2019. The increasing disposable income and purchasing power of the people shall stimulate the market growth over the forecasted period.

VR Gaming Market Companies and Competitive Landscape

The VR gaming market studied is a fragmented market with the presence of large number of market players. Sony Corporation, Microsoft Corporation, Nintendo Co. Ltd., Linden Labs, Electronic Arts, Facebook/Oculus VR, Google Inc., HTC Corporation, Virtuix Omni, and Telsa Studios are the market players with the significant market share. The major players are adopting several growth strategies such as product launches, mergers, licensing, acquisitions, and collaborations, which are contributing to the growth of the VR Gaming Market globally.  For instance,

Mergers & Collaborations:

• In May 2020, Topgolf Entertainment Group had entered into the collaboration with the Golf Scope to introduce Pro Putt by Topgolf on Oculus Quest. This collaboration would combine innovative, virtual reality enhancement technologies, including Golf Scope and Simply Putting, to bring to life the sensation of realistic golf courses and four different Topgolf fan favorite games i.e., Topgolf Classic, Top Pressure, Quick 9 and Quick 9 Pro.
• In June 2020, Sony PlayStation had entered into the collaboration with the UN Environment Programme (UNEP) to create an immersive virtual reality experience designed for increasing the awareness of climate change among the gamers worldwide.
• In February 2020, Technological University Dublin had entered into the collaboration with the Intel Ireland for conducting the research project that would explore the use of Virtual Reality (VR) technologies for training simulation programmes in Intel. This collaboration would explore the expertise of various emerging technologies available from the Virtual Interaction Research Lab (VIRaL) and School of Media at TU Dublin. VIRaL  is carrying out the research to determine how AR and VR technologies can augment, improve, and innovate existing practices and methods across a variety of fields such as digital media, journalism, games development, simulation-based education, training and manufacturing.  

Product Launch & Approvals:

• In September 2020, VRStudios, a provider of commercial virtual reality (VR) systems, technology, and integrated VR attractions had launched the VRStudios Sports platform. This platform would redraw the boundaries of virtual reality gaming for the new normal in location-based entertainment by linking players’ in-home VR gameplay with their social, competitive, premium experiences at out-of-home amusement venues such as family entertainment centers (FECs).
• In March 2020, iQIYI, Inc., had launched the Qiyu 2Pro VR somatosensory game console on e-commerce platforms. Qiyu 2Pro VR would adopts the cutting-edge inside-out 6DoF game technology in its interactive patterns. It achieves 6 degrees of freedom (6DoF) of the head and hand through the configuration of double 6DoF VR dual controllers, which can better satisfy users’ experience in scenarios of virtual reality games and create an immersive gaming environment.

Acquisition:

• In September 2020, Embracer had acquired Netherlands-based virtual reality (VR) games maker Vertigo Games for 50 million euros upfront and a possible additional payment of up to 65 million depending on its performance over the coming years
• In February 2020, Facebook’s oculus division had acquired Sanzaru Games, a video game company working on titles in the Sly Cooper and Spyro the Dragon franchises. Sanzaru also has experience developing virtual-reality (VR) games
• In December 2017, Microsoft had acquired the 3D optimization service Simplygon for an undisclosed sum. This acquisition would help the game developers integrate the optimization tool into their workflows to make content friendly to resource-intensive AR and VR platforms.
• In March 2017, Google acquired popular virtual reality gaming company Owlchemy Labs. Owlchemy would continue VR games, but would receive additional support from Google. The company would focus on hand interactions and high-quality user experiences

Partnership:

• In February 2019, NextVR had entered into the partnership with Central Station Records to provide an exceptional music experience to the users. This partnership would provide the on-demand VR experience services.

Why Purchase the Report?

• Visualize the composition of the VR gaming market segmentation by component, connecting device, and user highlighting the key commercial assets and players.
• Identify commercial opportunities in VR gaming market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of VR gaming market- level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

Target Audience 2022

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