The global VR in the gaming market is growing at a considerable CAGR of 31.0% during the forecast period (2021-2027). The major factors that are augmenting the growth of the market are improvements in the 3D multimedia graphics performance which will increase the real-time ability of the gamers. Moreover, companies engaged in R&D activities and the increase in the use of VR in smartphones has involved many users to use the technology which further fuels the growth of the market. However, harmful addiction by the VR devices especially in the younger population, high cost, loss of interaction, and communication with real-world, are some of the constraints that are expected to challenge the growth of the market in the forecast period. Conversely, industries coming up with cost-effective gadgets, and an increase in demand for entertainment are the opportunities for the growth of VR in the gaming market. 

Over the last few years, VR has achieved significant attention and use. New businesses have emerged as a result of recent technology developments in this industry. A slew of new players is entering the market in the hopes of guiding it toward widespread adoption in the gaming industry. According to NewGenApps, the global user base of AR and VR games is predicted to reach 216 million people by 2025. Besides, in June 2019, HTC launched VIVE Pro Eye which has a feature of eye-tracking technology with improved headphone and resolution design and the cost for the same is $1599. Moreover, in February 2020, HTC introduced the VIVE Cosmos series which had an 88% increase in pixel resolution over the original VIVE—delivering crystal-clear text and graphics. The product also includes a pre-installed External Tracking Faceplate to support SteamVR tracking. In 2021, the company is about to launch VIVE CON 2021 between May-June with more advanced features. 

COVID-19 Impact on Global VR in Gaming Market

The global VR in the gaming market was negatively affected by the COVID-19 pandemic since December 2019. The outbreak of COVID-19 in the major economies has disrupted the manufacturing and supply of accessories and devices in the countries like China and India. With the recent COVID-19 pandemic, the market for VR gaming is seeing a substantial boost in acceptance, as most countries have imposed a lockdown, and people are spending their time playing VR games. Many VR gaming providers, such as HTC Viveport, offer a variety of options to encourage consumers to stay at home and play rather than go out. For instance, the annual subscription to Viveport Infinity has been reduced by 75%, from $107.88 to $27. The first global Accessibility VR Game Jam, which is accessible to players with a disability, was established by UTSA academics in April 2020. However, due to COVID-19, they had to move the game jam to an online-only environment immediately. The market will witness “W” shape recovery in near future owing to the restart of key industries in the major economies.

Segmental Outlook 

The market is segmented based on device type and game type. Based on the device type segment, the market is segmented into a gaming console, desktop, and smartphones. Based on the game segment, the market is segmented into racing games, adventurous games, fighting games, shooting games, mystery thriller games, science fiction games, simulation games, and other games. 

Global VR in Gaming Market Share by game type, 2020 (%)

Racing Games Segment is to Show Lucrative Share in the Global VR in Gaming Market

The Racing Games segment hold a significant market share in 2020. These types of games are based on cutting-edge graphics. It has evolved from the previous time as there is no restriction now in movement. Oculus Rift has already gained a mass following after its successful campaign and even Sony has a massive install base that is the loyal PlayStation community which has evolved over the past few years. Most of the young population indulging their interest in the racing games are the factors that promote the growth of CR in the gaming market in this segment. In the device type segment, the smartphone segment is estimated to have one of the fastest growth in the forecast period owing to they are available at comparatively lower prices when compared to the gaming console and also most of the population own smartphones which makes it easier for them to use. The upcoming fast processors will have a huge impact on VR in the gaming market for the smartphone segment. Moreover, many non-gamer populations will also be attracted towards it especially in the emerging economies like China, India, and Japan where it is largely seen that smartphones are used mostly for playing games. 

Regional Outlooks

Global VR in the gaming market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is bifurcated into North America (the US and Canada), Europe (Germany, Spain, Italy, France, the UK, and the Rest of Europe), Asia-Pacific (India, China, Japan South Korea, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). North America is estimated to have one of the major shares in the VR in the gaming market. The presence of many market players, rise in technological advancements by advancing graphics, and increase in investments in VR in gaming are some of the factors that promote the growth of the market in this region. 

Global VR in Gaming Market Growth, by Region 2021-2027

Asia-Pacific is projected to highest Contributor to the growth of Global VR in the Gaming market

Asia-Pacific is anticipated to be the fastest-growing region in the global VR in the gaming market. In the region, China, South Korea, Japan, Singapore, and India are showing rapid progress. The Asia-Pacific region is estimated to be one of the fastest-growing segments owing to the rising popularity of virtual games, rising number of gaming tournaments, and presence of a huge number of gamers in the emerging economies. Besides, the rising collaboration among major players and government for the advancements of technologies is the major factor that is driving the growth of the market. For instance, In January 2019, The Kerala Startup Mission (KSUM) has partnered with Unity Technologies of the US to establish a Centre of Excellence for augmented reality (AR), VR (VR), and gaming. According to reports, the agreement assisted Kerala to establish an augmented reality AR/VR ecosystem.

Market Players Outlook

Key players of the VR in the gaming market are Google VR, Nintendo Co., Ltd., Oculus (Facebook Technologies, LLC.), Sony Interactive Entertainment LLC, NVIDIA Corp., Microsoft Inc., HTC Corp., and Advanced Micro Devices, Inc. among others. To survive in the market these players adopt different marketing strategies such as a merger, acquisitions, product launch, and geographical expansion so on. For instance, In June 2020, Unity Technologies Inc., a platform for generating and operating interactive, real-time 3D (RT3D) content has announced the launch of Unity MARS is a first-of-its-kind mixed and augmented reality (AR) authoring studio that allows creators across industries the power to construct intelligent AR content seamlessly.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global VR in the gaming market based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying who-stands-where in the market.