VIRTUAL REALITY IN GAMING MARKET ANALYSIS

Virtual reality refers to a simulated environment created by using software and hardware, in order to provide real environment experience to users. Virtual reality is experienced through sound and sight. Users are required to use gloves, earphones, and helmet that equipped with sensors to experience virtual reality. Virtual reality can be divided into a simulation of a real environment for education and training and development of an imagined environment for a story or a game. Virtual reality in gaming is referred to the use of sound and graphics technology in games where the user wears a head-mounted display (HMD), gloves, or glasses as part of their experience. In virtual gaming, biosensors are used to understand the movement of muscles and nerves properly.

The global Virtual Reality in Gaming Market is estimated to account for US$ 9493.1 Mn in terms of value by the end of 2021 and is expected to grow at a CAGR of 29.4% during the forecasted period (2022-2030).

Market Opportunity

Development of comfortable and compact VR gaming can present lucrative growth opportunities

Currently, the various input devices used for virtual reality games including glasses or goggles, head-mounted display (HMD), gloves, data suites, joysticks, and workbenches are quite expensive and uncomfortable to use. Furthermore, there are haptic devices that enable a user to feel a sense of touch when they operate an object within a virtual environment. However, virtual reality gears and devices are incomprehensible and uncomfortable. Major market players are focused on research and development activities, in order to provide more comfortable and compact VR gaming devices. As a result of this, the gears will be lighter, smaller, and affordable. The bulky head-mounted display would be replaced with small-sized lighter models that are comfortable to use and become more compact.

Research and development activities by market players can provide major business opportunities

Key companies in the market are focused on research and development activities, in order to innovate novel products and expand their market presence. For instance, in April Electronic Arts Inc. launched the FIFA World Cup game for XBOX 360 and PS3 consoles as a standalone product.

Market Restraint

High cost of reality gaming devices is expected to restrain growth of the global virtual reality in gaming market growth over the forecast period

The basic cost of virtual reality gaming devices is significantly is high as compared to conventional video games. Since designing virtual reality game system involves a significant investment, the average VR gaming devices are expensive. For instance, For instance, the total cost to create a virtual reality system with a virtual environment is between US$ 20,000 to US$ 25,000. Some of the virtual reality helmets cost around US$ 2,000. The introductory price for Sony PlayStation 4 was US$ 399 and the price range for the game is between US$ 40 and US$ 100. Hence, these factors are expected to restrain growth of the global virtual reality in gaming market during the forecast period.

High complexity associated with virtual reality gaming device is expected to hinder the global virtual reality in gaming market growth over the forecast period

The technology involved in virtual reality is highly complex and is operated by limited users. Many games use massively multiplayer online game architecture, which is difficult to upgrade if needed by the user. Further, the demand for better characters and stories in the game increases the complexity of visual display. Efficient streaming of content to wireless portable devices and for game download has also been an important issue. Streaming of media plays a prominent role in delivery of dynamic content to personal computer (PC) based virtual reality gaming. Hence, these factors are expected to hamper the global virtual reality in gaming market growth over the forecast period.

Global Virtual Reality in Gaming Market - Impact of Coronavirus (Covid-19) Pandemic:

During the COVID-19 pandemic, many countries were forced to shut down their ongoing business in order to control the spread of the COVID-19 Virus among all the countries where China and India, play a crucial role in the supply chain of virtual reality in gaming market. Moreover, in the span of the lockdown, the supply chain in these countries was mainly disturbed.

In addition to this, many industries were forced to close down their manufacturing site or remained operational with limited people working on the shop floor, which lowered the production capacity of factories. Furthermore, demand for non-essential products decreased during the pandemic. This slowed down the market growth of virtual reality in gaming during the pandemic.

Competitive Scenario

Key players operating in the global virtual reality in gaming market are Electronic Arts Inc., Kaneva LLC, Nintendo Co. Ltd, Avatar Reality Inc., Sony Corporation, Oculus VR, Activision Publishing Inc., and Sega Corporation.

Recent Developments:

1. Key players are involved in collaboration and partnership, in order to gain a competitive edge in the market. For instance, in June 2020, Sony Corporation, a key manufacturer of consumer electronics products, PlayStation, had partnership with UN Environment Programme (UNEP) to create an immersive virtual reality experience designed to grow global awareness about climate change.

Forecasted North America is expected to hold a dominant position in Virtual Reality in Gaming in 2030

Statistics:

North America held a dominant position in the global virtual reality in gaming market in 2021, accounting for a 36.9% share in terms of value, followed by Europe, APAC, and ROW respectively.

Figure 1: Global Virtual Reality in Gaming Market Share (%), By Region, 2021  

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North America Virtual Reality in the Gaming Market is expected to witness a high CAGR over the forecast period.

North America is expected to be one of the prominent regions in the global market and witness high growth during the forecast period. This is owing to the increased availability of instrumented, intelligent, and interconnected solutions.

Figure 2: Global Virtual Reality in Gaming Market (US$ Mn) Analysis and Forecast, 2017 – 2030

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The Global Virtual Reality in Gaming Market was valued at US$ 9493.1 Mn in 2021 and is expected to reach US$ 95888.0 Mn by 2030, growing at a CAGR of 29.4% between 2022 and 2030.