Global Virtual Reality In Gaming Market Size, Share & Industry Trends Analysis Report By Connecting Device (Gaming Console, PC/Desktop, and Smartphone), By Component, By User (Individual, and Commercial Space), By Regional Outlook and Forecast, 2023 - 203

Global Virtual Reality In Gaming Market Size, Share & Industry Trends Analysis Report By Connecting Device (Gaming Console, PC/Desktop, and Smartphone), By Component, By User (Individual, and Commercial Space), By Regional Outlook and Forecast, 2023 - 2030

The Global Virtual Reality in Gaming Market size is expected to reach $95.7 billion by 2030, rising at a market growth of 21.8% CAGR during the forecast period.

gaming consoles like PlayStation, Xbox, and Nintendo enjoy widespread popularity and penetration in Canada. These consoles serve as key platforms for gamers to access various gaming content. The widespread use of gaming consoles provides a ready and accessible platform for introducing VR experiences. Therefore, the North America region would generate a revenue of $31 billion by 2030. This has contributed to the region's widespread adoption of VR hardware and experiences. Major players in the VR industry, including hardware manufacturers and content developers, often have a significant presence in North America.

The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2023, Meta platforms Inc. has announced a partnership with Tencent Holding Ltd., a Chinese technology company. Under the terms of the deal, Tencent will produce and distribute the upcoming VR headset exclusively in China. By partnering with Tencent, Meta will not only benefit from Tencent’s strong presence in the country, but will also receive a significant portion of the revenue generated by the headset’s sales. In June, 2023, Electronic Arts Inc., came into partnership with Nike Virtual Studios, a division of Nike, Inc. Nike's new partnership with EA SPORTS will aim to create new immersive experiences and unlock entirely new levels of customization within the EA SPORTS ecosystem.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunner in the Market. In February, 2023, Microsoft Corporation came into 10-year partnership agreement with Nvidia Corporation, a technology company. Under this partnership, the company will enable Xbox PC games to be played on the more than 25 million-strong NVIDIA® GeForce NOWTM cloud gaming service in more than 100 countries, also enabling its users to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones, and other devices. and Companies such as Qualcomm, Inc., Samsung Electronics Co., Ltd., Meta Platforms, Inc. are some of the key innovators in Market.

Market Growth Factors

Immersive gaming experience with virtual reality

The immersive nature of VR gaming enhances player engagement significantly. Gamers are more deeply involved in the virtual worlds, leading to longer and more fulfilling gaming sessions. Increased engagement is a key factor in retaining and attracting gamers. The desire for extended and captivating gaming experiences contributes to adopting VR technology. VR technology enables developers to create richer and more interactive stories, attracting a diverse audience. These aspects will lead to increased demand for virtual reality in gaming.

Increasing growth in the gaming industry

The gaming industry has witnessed a significant increase in its user base, encompassing a diverse demographic spanning various age groups and backgrounds. The accessibility of gaming platforms, including consoles, PCs, and mobile devices, has contributed to the widespread participation in gaming activities. These aspects will pose lucrative growth prospects for the market.

Market Restraining Factors

High cost of virtual reality hardware

Premium VR headsets with advanced features, high-resolution displays, and immersive capabilities often come with a substantial price tag. This includes devices from leading manufacturers such as Oculus, HTC, and Sony. The high cost of VR headsets makes them a luxury item rather than a mainstream gaming accessory. Potential users, especially those with budget constraints, may hesitate to invest in VR technology due to the perceived high upfront cost. These aspects can limit the growth of the market.

Connecting Device Outlook

On the basis of connecting device, the market is divided into gaming console, PC/desktop, and smartphone. The gaming console segment recorded the maximum revenue share in the market in 2022. Many gaming console manufacturers, such as Sony, with its PlayStation VR, have integrated VR capabilities into their systems. This integration allows console users to experience virtual reality without needing separate and dedicated VR hardware. The ease of access has contributed to the growth of VR within the console gaming ecosystem. As a result, there will be increased demand in the segment.

Component Outlook

Based on components, the market is bifurcated into hardware and software. In 2022, the software segment garnered a significant revenue share in the market. The continuous development of diverse VR game genres, including action, adventure, simulation, and multiplayer experiences, has significantly contributed to the growth of the software segment. Developers are creating content that caters to a wide range of gaming preferences, attracting a broader audience to VR gaming. Therefore, the segment will expand rapidly in the coming years.

User Outlook

Based on user, the market is bifurcated into commercial space and individual. In 2022, the individual segment witnessed the maximum revenue share in the market. The availability of rich and diverse VR gaming content is crucial in attracting and retaining individual users. Engaging and innovative games designed specifically for VR enhance the unique gaming experience. Social and multiplayer VR gaming experiences can enhance the appeal for individual users. Connecting with friends in virtual spaces or engaging in multiplayer games provides added value, making VR gaming more attractive to individuals seeking social and personal experiences. These factors will boost the demand in the segment.

Regional Outlook

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired a considerable revenue share in the market. The Asia Pacific region is home to a massive and enthusiastic gaming population. Countries such as China, Japan, South Korea, and India have vibrant gaming cultures deeply ingrained in their societies. This cultural affinity for gaming has translated into a receptive audience for VR gaming experiences. The region has a substantial youth population with a strong affinity for technology and gaming. The appeal of immersive and interactive VR gaming experiences resonates particularly well with the younger demographics. Therefore, these factors will pose lucrative growth prospects for the segment.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Sony Corporation, Microsoft Corporation, Nintendo Co., Ltd., Electronic Arts, Inc., Meta Platforms, Inc. (Meta), Samsung Electronics Co., Ltd. (Samsung Group), Ultraleap Limited (Leap Motion, Inc.), HTC Corporation, Qualcomm Incorporated (Qualcomm Technologies, Inc.), Linden Research, Inc.

Recent Strategies Deployed in Virtual Reality in Gaming Market

Partnerships, Collaborations & Agreements:

Nov-2023: Meta platforms Inc. has announced a partnership with Tencent Holding Ltd., a Chinese technology company. Under the terms of the deal, Tencent will produce and distribute the upcoming VR headset exclusively in China. By partnering with Tencent, Meta will not only benefit from Tencent’s strong presence in the country but will also receive a significant portion of the revenue generated by the headset’s sales.

Jun-2023: Electronic Arts Inc. came into partnership with Nike Virtual Studios, a division of Nike, Inc. Nike's new partnership with EA SPORTS will aim to create new immersive experiences and unlock entirely new levels of customization within the EA SPORTS ecosystem.

Feb-2023: Microsoft Corporation came into 10-year partnership agreement with Nvidia Corporation, a technology company. Under this partnership, the company will enable Xbox PC games to be played on the more than 25 million-strong NVIDIA® GeForce NOWTM cloud gaming service in more than 100 countries, also enabling its users to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones and other devices.

Jan-2023: Meta Platforms Inc. has expanded its collaboration with the NBA and WNBA to provide an extensive selection of over 50 live VR games on Meta Quest. The partnership entails delivering a package of 52 live NBA games, featuring five immersive 180-degree monoscopic VR games in 2880 on Xtadium and Meta Horizon Worlds. Additionally, Meta will present a variety of WNBA, NBA G League, and NBA 2K League games throughout the season. Users on Meta Horizon Worlds will have access to game highlights, recaps, and archival content.

Oct-2022: Microsoft Corporation formed a partnership with Meta Platforms Inc., a technology company. The companies will collaborate to deliver immersive VR experience to their customers. Under this partnership, Microsoft will bring its services like Teams, office, Xbox Cloud Gaming and Windows to Meta Quest Pro and Meta Quest 2 VR headsets thus enabling people to partner and connect as they are at same place.

Feb-2022: Sony Corporation formed a collaboration with Niantic Inc., a software development company that develops and delivers augmented reality (AR) mobile games. Under this collaboration, the companies will work on augmented reality (AR) headphones. The companies want to provide their customers with best-in-class gaming experience with not only visual but auitory AR through headphones as well. With this agreement, the two companies will further quicken their new development efforts in the AR gaming space towards implementing richer gaming experiences combined with headsets.

Jul-2020: HTC Corporation's subsidiary, HTC VIVE, has revealed a strategic partnership with ARVI VR to expand their reach to a broader array of location-based entertainment (LBE) VR sites globally. In this partnership, HTC Vive and ARVI VR aim to introduce arcade content and escape room games to hundreds of sites over the next three years. The initial phase of deployment is set to commence this year, with locations planned in China, India, Taiwan, and Gulf Cooperation Council countries.

Product Launches:

Jun-2023: Meta Platforms Inc. has announced the launch of new subscription service for virtual reality (VR) gaming. The company will get boost to its revenue with the launch of this service, Meta Quest+ service.

Feb-2023: Sony Interactive Entertainment (SIE), a division of Sony Corporation, has revealed the PlayStation VR2 (PS VR2), the next-generation virtual reality (VR) gaming headset for consumers. In terms of visuals, the PS VR2 utilizes an OLED display featuring a 4K HDR video format, boasting a resolution of 2000 x 2040 pixels per eye and supporting frame rates of 90Hz/120Hz. The device boasts a 110-degree field of view, providing users with a highly immersive experience. The PS VR2 is equipped with high-precision visuals, innovative sensory features, and enhanced tracking capabilities. Sony aims to deliver an extraordinary virtual reality gaming experience to its customers with the PlayStation VR2.

Feb-2023: HTC Corporation's subsidiary, HTC Vive, has unveiled the 'VIVERSE for Business' solution, providing organizations with a straightforward and intuitive platform for constructing collaborative virtual spaces. Alongside this announcement, HTC Vive is introducing enhancements to VIVE XR Elite for Business, a fresh mixed reality (MR) face gasket for its VIVE XR Elite headset, a novel G REIGNS private 5G networking solution, updates to VIVE Mars CamTrack, and additional features.

Jan-2023: HTC Corporation's subsidiary, HTC Vive, has introduced its latest all-in-one flagship, the VIVE XR Elite. This headset seamlessly integrates Mixed Reality (MR) and Virtual Reality (VR) features into a compact, lightweight, and powerful device, catering to diverse applications such as gaming, fitness, productivity, and beyond. The VIVE XR Elite signifies a significant advancement toward a fully immersive internet experience, surpassing current VR capabilities by incorporating precise pass-through video to enhance realism in both learning and entertainment.

Nov-2022: Samsung Electronics Co., Ltd. has introduced Samsung Space Tycoon ("Space Tycoon"), a virtual playground within the Roblox metaverse platform. It offers users the ability to create and play games, sharing experiences with alien characters in a virtual space that draws inspiration from the 'tycoon' genre. Samsung's objective is to engage Gen Z customers, facilitating brand interaction and collaboration within this innovative space.

Nov-2021: Qualcomm Technologies, Inc. has introduced the Snapdragon Spaces™ XR Developer Platform, a developer kit for head worn Augmented Reality (AR). This platform empowers the development of immersive experiences that seamlessly blend the boundaries between the physical and digital realms. Boasting proven technology and an open, cross-device horizontal platform and ecosystem, Snapdragon Spaces provides developers with the necessary tools to bring their ideas to fruition, thereby revolutionizing the potential of head worn AR.

Mergers & Acquisition:

Jan-2022: Microsoft Corporation to acquire Activision Blizzard Inc., a video game development company. With this acquisition, the company will get boost in development of its future metaverse platforms. Microsoft corporation want to strengthen itself in gaming industry, which is the most dynamic and energetic category in entertainment across all platforms and will play a major role in the development of metaverse platforms.

Scope of the Study

Market Segments covered in the Report:

By Connecting Device

• Gaming Console
• PC/Desktop
• Smartphone

By Component

• Hardware
• Software

By User

• Individual
• Commercial Space

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Sony Corporation
• Microsoft Corporation
• Nintendo Co., Ltd.
• Electronic Arts, Inc.
• Meta Platforms, Inc. (Meta)
• Samsung Electronics Co., Ltd. (Samsung Group)
• Ultraleap Limited (Leap Motion, Inc.)
• HTC Corporation
• Qualcomm Incorporated (Qualcomm Technologies, Inc.)
• Linden Research, Inc.

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