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The Global Gaming Simulators Market size is estimated to grow at a CAGR of 17.58% between 2022 and 2027. The size of the market is forecast to increase by USD 13,060.47 million. The growth of the gaming simulation market depends on several factors, including the gaming simulators integrated with VR headsets, the increasing sophistication of games, and the gaming simulators providing the ultimate gaming experience.
This gaming simulator market research report extensively covers market segmentation by component (hardware and software), end-user (commercial and residential), type (racing, shooting, and flight), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, 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 gaming simulation market growth. VR creates an immersive environment for the gamer and enhances the gaming experience. It allows gamers to be completely involved in the game without getting distracted. VR headsets can act as a substitute for expensive LED screens. The increasing integration of gaming simulators with VR headsets will drive the growth of the gaming simulator market. With the growing penetration of VR headsets, consumers have become more aware of the functionality and usability of the headsets. Therefore, consumers will be more comfortable using VR headsets for gaming.
Acceptance of 360-degree camera as next-generation technology in gaming simulator 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 gaming 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. 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 gaming 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 gaming simulators market. The primary challenge for the gaming simulator 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. An average gamer that 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 share growth by the hardware segment will be significant during the forecast period. Hardware development has been rapid since 2010. An increasing number of vendors, such as Vertuix are investing heavily in hardware to build a better gaming interface to complement the core software.
Figure 1: Gaming Simulators Market by Component (2017-2027)
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The hardware segment was valued at USD 5,032.95 million in 2017 and continued to grow until 2021. The focused market has relatively high hardware investments. The investments are used to enhance the gaming experience of users. Since 2010, there has been a transition from PC gaming to mobile gaming to virtual reality (VR) headsets to gaming 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 vendors have been adopting new business strategies for launching new hardware components which will support enhanced gaming 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 gaming simulation 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.
Based on type, racing segment holds the largest market share. Racing games are played either from the first-person perspective or a third-person perspective. In the case of gaming simulators, racing games are only played from the first-person perspective. The gameplay will have the gamer drive a car in the virtual world using hardware. The hardware used is the racing simulator, which is a prototype of the original car equipment.One of the major factors driving the global gaming simulators market by racing is the high demand for F1. Fans that are passionate about F1 and want to experience racing are willing to pay a premium price for racing simulators. G-force simulation is expected to attract more users as it is a parameter that is only theoretically known to fans that watch F1 racing. With the high penetration of motion simulation, the interest among F1 fans will likely increase.
Figure 2: Gaming Simulators Market by Region
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North America is estimated to contribute 47% to the growth of the global gaming simulation market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest gaming simulator market. 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 gaming simulators more affordable for the population.
The popularity of e-sports leagues is driving the growth of the gaming simulator 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 gaming 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 gaming vendors will propel the growth of the regional market in focus during the forecast period.
In 2020, the COVID-19 outbreak positively influenced the regional gaming industry, as lockdowns created the need for recreational activities. With the adoption of remote working and the need to give their employees better training, various organizations, and businesses have inclined more toward virtual and augmented reality-based simulators, which led to an increase in demand for gaming simulators during the COVID-19 pandemic. Thus, the revenue of vendors increased in 2020. The adoption of business strategies such as developing efficient and new gaming simulators by key players in the gaming industry and the addition of new games to their portfolios will also increase the growth of the regional market 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 gaming simulation market.
Eleetus- The company offers gaming simulators such as Realistic G.
The research report also includes 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., 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.
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 gaming simulators market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Gaming Simulators Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.58% |
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Market growth 2023-2027 |
USD 13,060.47 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
12.49 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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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 forecast period |
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Customization purview |
If our 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 Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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