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 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The virtual reality in gaming market involves games and gaming applications designed specifically for virtual reality headsets. These games include both single-player experiences and multiplayer online games. Major applications include shooter games, adventure games, driving & flying simulators, exploration games and social gaming. The adoption of virtual reality has increased substantially over the past few years owing to decreasing prices of VR headsets from major players like HTC Vive, Oculus Rift etc. Gaming has emerged as one of the leading uses of VR technology attracting both individual gamers as well as professional gamers and e-sports players.
Market key trends:
The key trends in the virtual reality gaming market include rising adoption of standalone VR headsets, growing popularity of VR e-sports and increasing investment in VR exclusive games. Standalone VR headsets like Oculus Quest which do not require high-end PCs or smartphones to operate have boosted the mass-market appeal of VR gaming. Various e-sports tournaments and leagues using VR are also gaining popularity. Major game developers are increasingly focusing on creating VR exclusive AAA games with enhanced graphics and larger scope to attract more users. Industry leaders are also investing in 5G enabled cloud VR gaming to allow high-end gaming on low-cost portable VR devices.
Porter's Analysis:
- Threat of new entrants: The threat of new entrants in the virtual reality in gaming market is low given the high cost of development and infrastructure required. Well established brands have strong customer loyalty and economies of scale which make market entry challenging.
- Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have multiple options to choose from given the many players in the market. However, switching costs are low and differentiated offerings retain customers.
- Bargaining power of suppliers: The bargaining power of suppliers is low in this industry as there are many components and technology suppliers. Any single supplier does not have pricing power over buyers.
- Threat of new substitutes: The threat of substitutes is moderate as augmented reality and improved console based gaming offer alternatives. However, virtual reality provides a highly immersive experience not replicated through other means.
- Competitive rivalry: The competitive rivalry in the industry is high given the presence of technology giants and many established players vying for market share through product enhancements and platform expansions.
Key Takeaways:
The Global Virtual Reality in Gaming Market Growth is expected to witness high, exhibiting CAGR of 29% over the forecast period, due to increasing demand for immersive gaming experience. Rising investments by companies and improving VR hardware are fueling market growth.
Regional analysis: North America is expected to dominate the global virtual reality in gaming market during the forecast period. Presence of major VR companies and higher adoption rates in the US and Canada are driving the North American market. Asia Pacific is anticipated to exhibit the fastest growth owing to rising young demographics and increasing incomes in the region.
Key players: Key players operating in the virtual reality in gaming market incorporate Electronic Arts Inc., Kaneva LLC, Nintendo Co. Ltd, Avatar Reality Inc., Sony Corporation, Oculus VR, Activision Publishing Inc., and Sega Corporation. Electronic Arts and Sony have strong market position owing to their extensive gaming libraries and platforms. Upcoming entries from Facebook owned Oculus are likely to intensify competition.
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