Virtual Reality In Gaming Industry Overview

The global virtual reality in gaming market size was valued at USD 20.73 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 22.7% from 2023 to 2030.

Virtual Reality (VR) has enhanced gaming experience by offering a real-time ability to take gamers into their screens. The industry delivers gamers with alluring virtual accessories that improve user engagement along with immersive involvement. Incessant upgrades in the prevailing technologies comprising motion tracking, 3D effects, and interactive graphics for drawing players’ attention are expected to drive industry growth. Users are demanding newfangled sources of entertainment due to the surge in their spending capacity and are, hence, seen to be engaging in virtual reality games.

Gather more insights about the market drivers, restrains and growth of the Virtual Reality In Gaming Market

The virtual reality gaming space is expanding its professional value with the assistance of innovations. Awareness of state-of-the-art VR accessories, such as headsets, bodysuits, and gloves, is rapidly growing amongst players. VR headsets that were commercially launched in 2016 were a revolution in the recreation industry. The launch resulted in an upsurge in demand for virtual reality games as users were eager to encounter the 3D characters in their virtual surroundings. VR gadgets utilized in the market are empowered with intelligent interactive hardware and software, augmenting the entertainment experience for users.

The rapid advancement in the development of virtual reality peripherals that compatible desktops and game consoles reinforce is likely to drive industry growth. With several startups venturing into virtual reality in the gaming space, the industry for wearable components such as Head-Mounted Displays (HMDs), bodysuits, motion trackers, and gloves, among others, is probable to witness a surging demand by gaming enthusiasts. The devices are launched in a phased manner initially in a few countries. For instance, the HTC Vive has been initially made commercially available in only 24 countries.

Investors and entrepreneurs have been showing singular interest in the virtual reality space for the past five years. The considerable investments in immersive technology across tech-based companies are notifying the upcoming trend in the entertainment and computing business. According to NASSCOM, in the last five years, content creation tools have received 43.5% of the total funding for VR. It indicates the augmented need to ensure superior content development to maintain the interest, demand, and supply of immersive experiences through virtual reality.

Companies are continually engaged in RD activities to launch technologically advanced products and gain an edge over their competitors. In virtual reality in the gaming market, players are manufacturing accessories extending from motion-sensing devices to treadmills, gloves, arms, and even full bodysuits. For instance, in July 2019, Teslasuit launched its full-body VR haptic suit, which delivers a hyper-accurate illustration of sensations and captures biometrics. The growing demand for VR accessories and wearables amongst users and their probable price fall in the coming seven years is anticipated to drive the virtual reality in gaming market growth. Nevertheless, device compatibility limitation is a challenge that poses a barrier to the industry’s growth.

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Key Companies Market Share Insights

Intense competition among key industry players has shifted the focus of the companies to cost-effectiveness, innovation, and quality of the VR hardware, content, and software. The transition from one generation of gaming consoles to another usually takes five to six years. Sellers are continually involved in technological upgrades and pass them to gamers. Major market players are focusing on strengthening their product portfolio in a bid to sustain their leading market position.

Companies are engaged in regional expansion, mergers, acquisitions, and strategic collaborations to expand their business at global and regional levels. For instance, in February 2023, Sony Interactive Entertainment (SIE) announced the worldwide release of PlayStation VR2 (PS VR2), their highly anticipated next-generation virtual reality (VR) gaming headset designed for consumers. The headset boasts an array of cutting-edge features, including high-fidelity visuals, innovative sensory enhancements, and improved tracking capabilities.

Key Virtual Reality In Gaming Companies:

• Sony Corporation
• Microsoft
• Games
• Linden Research, Inc.
• Electronic Arts Inc.
• Meta
• SAMSUNG
• Google Inc.
• HTC Corporation
• Virtuix
• Ultraleap Limited
• Tesla Studios
• Qualcomm Technologies, Inc.
• com

Recent Developments

In June 2023, Meta Platforms (META) introduced a VR gaming subscription service, a strategic move aimed at potentially enhancing its revenue stream. According to this initiative, subscribers can retain the games for as long as they remain active members of Meta Quest+. Meta labeled this subscription plan as "the most affordable way to expand your library with exceptional content."

In November 2022, Meta launched the XTADIUM app on Meta Quest, providing customers with an immersive 180-degree VR experience of their favorite sports. The app offers real-time statistical overlays and up to eight different camera angles for users to choose from. Additionally, viewers can enjoy the event alone or create private watch parties to share the experience with friends.

In October 2022, Microsoft announced a partnership with Meta to deliver a VR experience. The collaboration aimed to bring Microsoft's productive tools to VR headsets while supporting Meta's grand Metaverse plan.

In April 2021, Oculus VR partnered with independent studio Armature Capcom to release the Resident Evil 4 VR remake exclusively on Oculus Quest 2. Facebook, the parent company, held onto its Quest platform to showcase this highly anticipated VR gaming experience.

In May 2020, Apple Inc. made a significant acquisition by purchasing NextV, a virtual gaming company based in California. This strategic move bolstered Apple's efforts in the gaming, sports, and entertainment field. Furthermore, with NextVR's impressive portfolio of 40 patents, the company gained the capability to elevate the quality of video streams, opening up new possibilities for enhanced user experiences

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