Virtual Reality in Gaming Market

Global Virtual Reality in Gaming Market is valued at USD 9.13 Billion in 2022 and is projected to reach a value of USD 76.36 Billion by 2030 at a CAGR of 30.40% over the forecast period.

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The skyrocketing number of people who use smartphones is due in part to how cheap they are and how many ways there are to connect to the internet. As this trend continues, more and more gamers are buying virtual reality headsets. Also, when 5G technology comes out, there will be a big jump in the number of people using mobile virtual reality. Another key element that is driving the rise of VR in the gaming sector is the increasing popularity of competitive online gaming, sometimes known as "e-sports." The term "e-sports" refers to the competitive form of video gaming that is both organized and played by experienced gamers. Esports are also getting more and more popular, and in the next few years, they are expected to bring in $1.1 billion. This is being driven by the growing number of professional gamers, as well as the increasing amount of prize money that is up for grabs at tournaments. More and more people are watching and entering these competitions, which means that the prize pools are getting bigger. Because of this, an increasing number of players are interested in trying out VR gaming, which is contributing to the expansion of the market. There have been several research studies conducted in recent years that show the impact of virtual reality games on human health. The demand for virtual reality gaming is being fueled by many things, such as the growing popularity of virtual reality games, the growth of VR content libraries, and the growing number of people who use advanced gaming equipment. But right now, the biggest problems for people in the industry are that virtual reality headsets are too expensive and there aren't enough good materials. Also, virtual reality can cause motion sickness, which is a big problem that could slow the growth of this sector to some degree. Sony is expected to release its PlayStation VR headset in late November. The device will be costlier than Samsung's Gear VR but it will offer more innovative features such as support for 3D movies and games. Facebook is also expected to enter the virtual reality market soon with its own standalone headset called Oculus Quest.

The following is a list of some of the most significant market restraints: Insufficiently powerful and reasonably priced hardware: To play virtual reality games, gamers must buy special equipment like headsets and controllers. This hardware can be quite pricey, with high-end headsets costing more than $500 in some cases. In addition, the hardware that is necessary for virtual reality is frequently of a very powerful kind, which means that it is not compatible with computers that are either older or less powerful. This restricts the potential audience for virtual reality gaming to only those individuals who have the financial means to pay both the initial investment as well as the continuous costs of upgrading their hardware. One of the biggest challenges facing VR developers is creating content that is both engaging and realistic. So far, most VR games have been limited in scope due to the technology’s lack of realism. However, this will likely change in the near future as improvements are made in display technology and graphics rendering engines. Another challenge facing the VR market is pricing. Virtually all current mobile VR headsets cost less than $200, which makes them accessible to a wide audience of gamers. However, there is still a lot of room for improvement when it comes to affordable head-mounted headsets that provide an immersive experience comparable to those available on high-end gaming consoles such as the PlayStation 4 and Xbox One. To ensure the continued success of virtual reality gaming over the long term, there must be a steady flow of fresh and original content released regularly to maintain the interest of gamers. The term "virtual reality sickness" refers to a condition that affects a sizable fraction of persons who experiment with virtual reality gaming and find that they are bothered by it and unable to continue playing. Symptoms associated with this condition may include queasiness, headaches, and lightheadedness. As a direct consequence of this, a lot of individuals are put off to the point that they won't even try virtual reality gaming at all.

Impact of the market on consumers

Consumers feel the effects of the market in two different ways. On the one hand, some individuals believe that the use of virtual reality will result in a gaming experience that is both more immersive and pleasurable. On the other hand, some people fear that the rising costs connected with virtual reality gaming would ultimately price out many customers, resulting in a smaller market overall. It is commonly held that virtual reality will usher in a brand-new era for gaming in terms of the impact it will have on the overall experience of playing video games. By placing gamers in a wholly immersive atmosphere, it will be possible to have an experience that is significantly more interesting and realistic. This may result in individuals playing video games for longer periods than they have in the past. On the other hand, there is a concern that the rising prices of hardware and software associated with virtual reality could eventually put off a significant number of potential customers. Although the initial investment would be substantial, it is not yet known whether or not customers will be willing to pay consecutive membership fees or make consistent purchases of new games. This could lead to a reduction in the size of the market for virtual reality games overall.

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Top Market Trends

The gaming market is constantly evolving, and virtual reality is becoming more and more popular. Here are some of the top market trends for Virtual Reality in Gaming:

• Increased immersion – With virtual reality, players can be fully immersed in the game world. This allows for a more realistic and engaging experience that can keep players coming back for more.
• New genres of games – As virtual reality becomes more popular, we are seeing new genres of games being developed specifically for this platform. This includes horror games, puzzle games, and even first-person shooters.
• More affordable hardware – Virtual reality headsets used to be very expensive, but now there are more affordable options available that make it possible for more people to enjoy VR gaming.
• Better graphics and gameplay – The technology behind virtual reality is constantly improving, which means that the graphics and gameplay are getting better all the time. This makes VR an even more appealing option for gamers who want the best possible experience.
• Greater social interaction – With VR, gamers can interact with each other in new and exciting ways. This can make the gaming experience even more enjoyable and allow players to connect on a deeper level.

Market Segmentation

Virtual reality in the gaming market is segmented based on Component, Connecting Device, User, and Region. Based on Components, the market is classified into Hardware and Software. Based on Connecting Devices, the market is classified into Gaming Consoles, PC/ Desktops, and Smartphones. Based on the User, the market is classified into Commercial Space and Individual. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Based on Component

The Hardware segment is expected to grow at a higher CAGR during the forecast period. The growing adoption of VR headsets and increasing investment by hardware manufacturers in developing new VR-compatible gaming hardware are the major factors driving the growth of this segment. The hardware segment includes headsets, gloves, controllers, sensors, Irat/Optical systems, and others. The controllers segment is expected to grow at the highest CAGR during the forecast period. The software segment is expected to grow at a lower CAGR during the forecast period. The lack of a strong content library is the major factor restraining the growth of this segment. This segment includes middleware, engines, and tools & applications. The middleware segment is expected to grow at the highest CAGR during the forecast period.

Based on Connecting Device

The Gaming Console segment is expected to grow at a CAGR of 9.6% during the forecast period. The increase in the number of gamers and the availability of a wide variety of gaming consoles are the key factors driving the growth of this market. The PC/desktop market is expected to grow at a CAGR of 8.5% during the forecast period. The increasing adoption of VR gaming by PC or desktop gamers and the growing popularity of VR gaming among hardcore gamers are the key factors driving the growth of this market. The smartphone market is expected to grow at a CAGR of 33.3% during the forecast period. The increasing availability of VR-enabled smartphones and the growing popularity of mobile gaming are the key factors driving the growth of this market. Smartphones are the more affordable option, and they are becoming increasingly powerful. However, their small size means that they cannot provide the same level of immersion as a PC/desktop.

Based on User

The Individual segment includes VR arcades, home users, and others. The VR arcades segment is expected to grow at the highest CAGR during the forecast period. The increase in the number of VR arcades in Asia-Pacific and Europe is one of the major factors driving the growth of this segment. The commercial space segment includes theme parks, museums, and others. The theme parks segment is expected to grow at the highest CAGR during the forecast period. The increase in investment by leading theme park operators such as Walt Disney Parks and Resorts, Universal Parks & Resorts, and SeaWorld Parks & Entertainment in developing new VR-based rides is one of the key factors driving the growth of this segment. The global virtual reality in the gaming market is expected to be driven by the increasing adoption of VR headsets by gamers and game developers across the globe. Gamers are adopting VR headsets for an immersive gaming experience. In addition, with the increasing adoption of VR technology by game developers, a wide range of VR games are being developed for various gaming platforms such as PCs, consoles, and mobile devices. This is further propelling the growth of virtual reality in the gaming market across the globe.

Based on Region

The North American region is anticipated to hold the largest market share owing to the early adoption of the latest technologies and the presence of key manufacturers in the region. The market in Asia-Pacific is expected to grow at the highest CAGR during the forecast period owing to the increasing demand from countries such as China, Japan, and South Korea. The European market is expected to witness significant growth owing to the increase in funding by government bodies for research and development activities in the region. The market in Latin America and Middle East & Africa is expected to grow at a moderate rate due to a lack of awareness about virtual reality technology and its applications.

Competitive Landscape

The key players in the Global Virtual Reality in Gaming Market include- bHaptics Inc. (South Korea), Facebook Technologies, LLC./Oculus (US), Google VR (US), HTC Corporation (Taiwan), SAMSUNG Electronics Co. Ltd. (South Korea), Sony Interactive Entertainment LLC (US), TESLASUIT/ VR Electronics Limited and others.

Recent Advancements

• Recent advancements in virtual reality gaming technology have made it possible for gamers to experience a more immersive and realistic gaming environment. One of the most popular new VR games on the market is "Beat Saber," in which players use lightsabers to slash through musical beats. Other VR games that are gaining popularity include "Job Simulator," "Superhot," and "Hover Junkers."
• Another factor driving the growth of virtual reality in the gaming market is the increasing investment by major companies in VR technology. For instance, Facebook has invested over USD 2 billion in OculusVR, a leading manufacturer of VR headsets. Similarly, Sony has also announced its plans to invest USD 50 million in PlayStation VR content. These investments are expected to fuel the growth of the VR gaming market.
• Virtual Reality has also been used in other areas outside of video gaming. For example, some businesses are using VR to provide employees with training simulations. These simulations can help employees learn new skills or practice ones that they already have. Additionally, therapists have begun using VR to treat patients with conditions such as anxiety and PTSD.
• Nintendo Co., Ltd., one of the leading developers and publishers of video games, has announced plans to foray into the VR market with its new console, Nintendo Switch. The console will be equipped with special glasses that allow gamers to experience enhanced reality experiences.
• Sony Corporation, another leading developer and publisher of video games, has released details about its new project, PlayStation VR. The project will see PlayStation 4 consoles being used for gaming purposes instead of televisions. This move is aimed at widening the appeal and reach of Sony's products amongst gamers across various age groups.
• HTC Corporation, a global provider of mobile technology, has announced plans to develop standalone headsets that will be powered by blockchain technology. These headsets will allow users to purchase goods or services without having to interact with third-party platforms such as banks or retailers.

Segmentation of the Global Virtual Reality in Gaming Market