June 24, 2024
Virtual Reality In Gaming Market

Virtual Reality In Gaming Is Driven By Increasing Demand For Immersive Gaming Experience

Virtual reality (VR) technology is transforming the gaming industry by providing an immersive experience to gamers. VR gaming allows players to feel present within the virtual gaming environment through headsets and controllers. VR games encompass a wide range of genres including action, adventure, racing and puzzle games.

The introduction of high-end VR headsets like Oculus Rift, HTC Vive and PlayStation VR has enabled developers to design innovative games with interactive gameplay and three-dimensional graphics. VR games offer life-like simulations involving spatial awareness, depth perception and hand tracking. The ability to virtually navigate and interact inside 3D environments through motion sensors and controllers has captivated gamers worldwide.

The global Virtual Reality in Gaming Market is estimated to be valued at US$ 15895.59 Mn  in 2023 and is expected to exhibit a CAGR of 4.2%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

The increased availability of premium VR gaming hardware like Oculus Rift, HTC Vive Pro and Valve Index has accelerated VR game development. Major gaming consoles manufacturers are also diversifying into VR to attract gamers. For instance, Sony introduced PlayStation VR for its PlayStation 4 gaming console. Another key trend is growing investments by gaming studios to create immersive VR games. Well-funded indie developers are designing innovative games leveraging new hardware capabilities. The adoption of 5G technology is also anticipated to boost online multiplayer VR gaming experiences by improving responsiveness and bandwidth. Rising popularity of eSports and competitive VR gaming is fueling innovation in multiplayer VR games and leagues.

Porter’s Analysis

Threat of new entrants: Low barriers to entry and high initial investment required in the development of VR gaming technology and contents makes threat of new entrants low.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and differentiation in VR hardware & contents.
Threat of new substitutes: Emergence of advanced technologies like augmented reality poses threat of substitution.
Competitive rivalry: Intense competition exists among existing players to gain market share through development of advanced and innovative VR gaming solutions.

Key Takeaways

The global Virtual Reality in Gaming Market Demand is expected to witness high growth over the forecast period 2023 to 2030. North America dominated the market in 2023 with a share of more than 35% owing to technological advancements and high adoption of VR gaming solutions in countries like the US and Canada.

Regional analysis: Asia Pacific is expected to witness fastest growth due to growing gaming market and increasing investment by key players in developing VR gaming infrastructure and contents for the region. China dominates the APAC Virtual Reality gaming market with majority of share.

Key players operating in the Virtual Reality in Gaming Market are Virtual Realms, Oculus VR (Facebook), Sony, HTC Vive, Nintendo, Samsung and Google.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it