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The VR gaming market size is estimated to grow at a CAGR of 28.39% between 2022 and 2027. The market size is forecast to increase by USD 17,853.41 million. The growth of the market depends on several factors, including the increasing adoption of VR in the interactive home entertainment industry, the introduction of digital downloading in gaming consoles, and the rising adoption of AR games.
This VR gaming market report extensively covers market segmentation by Application (consoles, pcs, and mobile devices), Component (hardware and software), and Geography (APAC, North America, Europe, Middle East and Africa, and South America). 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.
The increasing adoption of VR in the interactive home entertainment industry is a key factor driving market growth. The significant increase in the implementation of VR technology using VR headsets and other VR devices, such as motion controllers, is expected to drive the growth of the VR gaming market. Vendors such as Facebook are increasingly emphasizing the production of VR head-mounted displays (HMDs) such as Oculus Rift and Oculus Go. These VR headsets work in tandem with various gaming consoles, such as Sony PlayStation VR, and track the head movement of the gamer to provide 3D /imagery on their stereo screens. Furthermore, products such as Oculus Touch controllers conform with the gamer hand, enabling finger recognition, and gesture-controlled gaming, thereby further enhancing the gaming experience. These factors will increase market growth during the forecast period
The growing popularity of 360-degree content is a key trend boosting the growth of the market. The progress of technology in the global VR content market has resulted in the emergence of VR and 360-degree videos, following the advancements in 3D, 4D, and 5D content. VR, a recent innovation in the entertainment industry, is gradually expanding into various digital domains. By 2020, the VR content market had become a prominent platform for gaming, leading to a transformation of the digital landscape. Major companies like Facebook, Sony, and HTC have introduced their VR devices, with Facebook Inc. launching the Oculus Quest 2, a next-generation virtual reality headset, in September 2020. The market is expected to witness the introduction of more VR devices from these companies and others in the future.
Combining VR games with 360-degree content can provide gamers with the ultimate gaming experience. By wearing a VR headset, players can change their viewing angles by moving their necks, enhancing immersion. The VR gaming market is expected to grow significantly as there is a growing demand for immersive environments in gaming during the forecast period.
Privacy concerns over gamers information is a key challenge hindering the market growth. Vendors in the global digital game market track cookies to gather information about gamers. Gamers block such activities of gaming vendors or uninstall gaming applications from their mobile devices. This has led to a loss in revenue for vendors and their capability to generate revenue by deploying a freeware model. To overcome such issues, vendors now ask for the prior consent of the gamers before downloading or installing the games on their mobile devices. Nevertheless, gamers would always be conscious about making extensive use of the gaming application because of the fear of allowing vendors to have access to their personal data. Hence, privacy concerns are another challenge that hinders the growth of the global digital game market during the forecast period.
Based on application, the market is segmented into consoles, PCs, and mobile devices. The market share growth of the consoles segment will be significant during the forecast period. The revenue share of the segment is expected to rise with the introduction of different virtual accessories to support console games. In February 2021, Sony announced the next-generation Virtual reality (VR) headset for its best-selling PlayStation 5 home console. The headset will come with an improved field of view and a new controller inspired by the PS5 DualSense. Such type of factors will increase segment growth during the forecast period.
Figure 1: VR Gaming Market by Application (2107-2027)
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The consoles segment was valued at USD 1,817.12 million in 2017 and continue to grow until 2021. Game developers are creating content compatible with VR hardware. These games should not be an extension of an existing popular gaming franchise and must have a different storyline to go with the hardware. For instance, Batman: Arkham Knight is being developed for VR, but it will have a completely different storyline compared to the storyline in television consoles. An increasing number of game developers are expected to launch VR-specific gaming content during the forecast period.
Based on components, the hardware segment holds the largest market share. In the hardware sector, VR devices tailored for the gaming market, like VR gaming headsets, are included. Major suppliers such as Oculus VR, Sony, Samsung, and Google, as well as smaller start-ups, are set to impact the global gaming market dynamics. The competition will be intense, focusing on the design and pricing of VR devices. Factors contributing to the declining revenue share in this segment include decreasing prices of VR consoles, making them more accessible to the middle-class population, and the challenge of transitioning hardcore gamers to VR gaming. Additionally, the dependency on VR accessories is expected to increase, driving growth in the accessories market.
Figure 2: VR Gaming Market by Region
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APAC is estimated to contribute 40% 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.
One of the major factors supporting the growth of the VR gaming market in APAC is the presence of a large number of local and global players that develop VR software and hardware. BaoFeng MoJing, one of the major players in China, is developing advanced VR hardware. The company is partnering with indie VR developers to create and distribute 26 VR games. Tinashe Media, a local vendor in China, is developing a VR multiplayer adventure game for HTC VIVE, Oculus Rift, and Project Morpheus using the UE4 engine. South Korea and Japan experienced an increased adoption of VR technology and VR content during the forecast period.
The COVID-19 pandemic restricted people in their homes and created a need for recreational activities, such as gaming, in 2020. The addition of new games by vendors created the need for gaming hardware, such as VR gaming, which propelled the growth of the market. Besides, the growing adoption of online games in developing countries, such as India, and the regional expansion of vendors in the region are expected to drive the gaming industry. Thus, the growing penetration of the gaming industry in the region will drive 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.
HTC- The company offers VR gaming named AFFECTED The Manor complete edition with four alternate ending.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alphabet Inc., bHaptics Inc., Carl Zeiss AG, Electronic Arts Inc., Fallen Planet Studios Ltd, HTC Corp., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., Nintendo Co. Ltd., NVIDIA Corp., Qualcomm Inc., Razer Inc., Samsung Electronics Co. Ltd., Sony Group Corp., Ubisoft Entertainment, Unity Software Inc., Virtuix Inc., Wookey Technologies Inc., and Advanced Micro Devices Inc.
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 VR gaming 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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VR Gaming Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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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 28.39% |
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Market growth 2023-2027 |
USD 17,853.41 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
24.74 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., bHaptics Inc., Carl Zeiss AG, Electronic Arts Inc., Fallen Planet Studios Ltd, HTC Corp., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., Nintendo Co. Ltd., NVIDIA Corp., Qualcomm Inc., Razer Inc., Samsung Electronics Co. Ltd., Sony Group Corp., Ubisoft Entertainment, Unity Software Inc., Virtuix Inc., Wookey Technologies Inc., and Advanced Micro Devices Inc. |
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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 Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 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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