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The global gaming simulators market size is estimated to grow by USD 12.94 billion, at a CAGR of 15.98% between 2023 and 2028. The fusion of gaming simulators with VR headsets elevates the immersive quotient for gamers, stimulating demand for cutting-edge gaming configurations. As games evolve with heightened realism in graphics and intricate gameplay, the trend leans towards gaming simulators offering enhanced immersion and engagement. These simulators, equipped with realistic controls and feedback mechanisms, cater to gamers seeking authenticity in their gaming encounters. The allure of the ultimate gaming experience propels the adoption of such simulators, promising a heightened level of immersion that transcends traditional gaming setups. With the convergence of advanced technologies, including VR and sophisticated gaming mechanics, the gaming landscape is witnessing a paradigm shift towards more immersive and captivating gaming experiences. As gamers seek to immerse themselves fully in virtual worlds, the demand for gaming simulators that deliver an unparalleled level of realism and interactivity is expected to soar.
The market research and growth report forecasts include detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 3D perception AS, Adacel Technologies Ltd., Aero Simulation Inc., Atomic Motion Systems, BLUEHALO LLC, CKAS Mechatronics Pty Ltd, Cruden, CXC Simulations, D BOX Technologies Inc., GTR Simulators, Guillemot Corp. SA, Hammacher Schlemmer and Co. Inc., Lean Games Ltd., Playseat BV, RSEAT Ltd., Simtechpro SL, SimXperience, Sony Group Corp., and Vesaro Ltd.
Figure 1: Market Share
The market is experiencing significant growth driven by the increasing popularity of virtual reality (VR) and simulation games. Products like the Next Level Racing F-GT Lite and the Roto VR Chair are revolutionizing the gaming experience. With the rise of high-speed internet networks, gamers can enjoy these simulators at home or in places like amusement parks and theme parks. VR headsets and touch devices enhance gameplay, making popular games more immersive. This surge in demand is also seen in training programs for pilots and drivers, where simulators offer realistic experiences aided by technological advancements like augmented reality and high-fidelity simulations, ensuring compliance with stringent safety regulations. Our researchers analyzed the data with 2022 as the base year, along with the market trends and analysis, drivers and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Gaming simulators integrated with VR headsets are the key factors driving the market growth. Virtual reality (VR) provides an immersive environment for gamers, enhancing their experience by allowing them to be fully engaged in the game without distractions. Understanding simulation games, actions, and game progression is crucial for developing more immersive and engaging gaming experiences. Technological advancements in VR have led to more realistic graphics, improved motion tracking, and enhanced audio, further enhancing the immersion. Augmented reality (AR) is also becoming increasingly popular, blending virtual elements with the real world to create unique gaming experiences.
Further, high-fidelity simulations in VR allow for realistic training scenarios, benefiting industries such as healthcare, aviation, and military training. VR headsets can serve as a cost-effective alternative to expensive LED screens. The rising integration of these simulators with VR headsets is expected to boost the market. As VR headsets become more prevalent, consumers are gaining a better understanding of their capabilities and ease of use, making them more inclined to use VR headsets for gaming.
Acceptance of 360-degree camera as next-generation technology in the market is a key market trend. Technological advances in the global VR content market have led to the introduction of 360-degree videos. VR is considered a mainstream gaming platform in the entertainment domain and is making its way to various digital arenas. The concept of VR with these simulators is rapidly growing, and it is one of the leading technological transformations in the gaming world. The addition of a 360-degree field of vision to the VR headset enhances the QoE of the gaming simulator. Gamers get not only a front view but also a 360-degree view of the VR environment.
Moreover, with tech giants like Facebook launching its flagship VR device Oculus Rift, Sony launching Morpheus, and HTC launching Vive, VR integration with 360-degree content and these simulators will experience increased growth during the forecast period. The next iteration of the virtual car mechanic simulation from Red Dot Games and PlayWay will be released in August 2021. This Car Mechanic Simulator will allow players to build a garage and make it their own. Besides, there are over 72 different vehicles to repair, fix, test, paint, tune, and rebuild with VR.
Gaming simulators are expensive, which is a major factor hindering the market. The primary challenge for the market is that the product is pricing out the majority of the middle-class population. Simulators are predominantly used in commercial places as owning one is not a financially viable option for over 99% of the population.
Further, an average gamer who wants to experience gaming using a gaming simulator will need to pay a price premium to play for a limited time. In commercial places, an average gamer cannot fully enjoy the simulation experience because he can only afford a limited time. This is more common in Asia, where the demand for such a gaming experience is high, but the average disposable income is relatively low.
The market is witnessing a surge in demand, driven by the need for stress busters and immersive training experiences like those offered in the Toyota Velocity Esports Championship. With a focus on diverse game genres and engaging tap-and-swipe mechanics, simulators provide realistic training solutions across various industries. As the Simulator Industry grows, ensuring the safety of simulator-based training remains paramount. These simulators offer an innovative approach to training, providing users with a safe and realistic environment to enhance skills and knowledge.
The market share growth by the hardware segment will be significant during the forecast period. Hardware development has been rapid since 2010. An increasing number of companies, such as Vertuix are investing heavily in hardware to build a better interface to complement the core software.
Figure 2: Market by (segment name) (Forecast Year)
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The hardware segment was valued at USD 5.11 billion in 2018. The focused market has relatively high hardware investments. The investments are used to enhance the experience of users. Since 2010, there has been a transition from PC to mobile to virtual reality (VR) headsets to simulators. A major factor for the seamless transition is the improving hardware standards that provide gamers with the ideal platform to enjoy gaming. Thus, various companies have been adopting new business strategies for launching new hardware components that will support enhanced experience. Therefore, the segment will show growth during the forecast period.
Based on end-user, the commercial segment holds the largest market share. The commercial user's segment uses simulators as a capital investment. As the product is not affordable for the majority of the population, only interested people can experience simulation at commercial places. The market is growing as an increasing number of consumers are finding value in the product. The market is a niche market, especially in APAC. In APAC, the availability of the product is less, despite the population being enthusiastic about the gaming experience. During the forecast period, we expect the availability of simulators to increase as many businesses are buying the product. This will help the market grow and will compel businesses to reduce their profit margins.
Figure 3: Market by Region
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The major factor contributing to its large market size is the high average disposable income of the population in North America. This has increased the spending capability of people and has made simulators more affordable for the population.
Additionally, the popularity of e-sports leagues is driving the growth of the market in North America. The popularity of e-sports has been driven by the availability of channels, such as Twitch and YouTube, which Provides free telecast of e-sports. In addition, e-sports gamers are receiving visas similar to professional athletes in the US, which is encouraging enthusiasts to take up e-sports professionally. As a result, the region is witnessing an increasing number of investments in the opening of new e-sports arenas. Furthermore, growing investments and business strategies by these companies will propel the growth of the regional market in focus during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market report.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing rapid growth, fueled by advancements in cloud computing, AI, and gesture-based gaming. From the Velocità Racing Simulator to Full Swing Golf, simulators offer immersive experiences across various game hubs and entertainment venues. With a focus on privacy and security concerns, developers integrate haptic feedback systems and geotypical 3D representation to enhance realism. Simulators cater to a diverse range of industries, including the aviation and maritime sectors, providing time-efficient training methods and cutting-edge technologies for skill enhancement. As demand rises for simulation-based training in the aerospace and automotive industries, the market sees increased adoption of high-fidelity graphics rendering and AI algorithms. With stringent regulatory approvals and a focus on safety standards, simulator developers strive to deliver customer-centric products that meet regulatory requirements and ensure operational efficiency in a variety of industries.
Further, the market is evolving with the rise of AR and VR headsets and advancements in AI and ML algorithms. From conventional games to simulation genres like aircraft sims and city-builder sims, simulators offer immersive virtual environments for pilot training and equipment-use training in complex situations. With live gaming experiences and online gaming operations, the market caters to professional race pilots and gamers seeking low-risk environments. Smart cities and education institutions utilize simulators for advanced training solutions while Original Equipment Manufacturers (OEMs) ensure safety and regulatory standards compliance in the aviation sector. The market thrives on interoperability and networked training scenarios for a diverse range of scenarios across industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Decelerate at a CAGR of 15.98% |
Market Growth 2024-2028 |
USD 12.94 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.42 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 48% |
Key countries |
US, UK, China, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3D perception AS, Adacel Technologies Ltd., Aero Simulation Inc., Atomic Motion Systems, BLUEHALO LLC, CKAS Mechatronics Pty Ltd, Cruden, CXC Simulations, D BOX Technologies Inc., Eleetus LLC, GTR Simulators, Guillemot Corp. SA, Hammacher Schlemmer and Co. Inc., Lean Games Ltd., Playseat BV, RSEAT Ltd., Simtechpro SL, SimXperience, Sony Group Corp., and Vesaro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Market Segmentation by Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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