Virtual Reality in Gaming Market Size, Share, Growth Analysis, By Component (Hardware, Software), By Connecting Device (Gaming Console, PC/ Desktop), By End User (Commercial Space, Individual), By Region - Industry Forecast 2024-2031

Global Virtual Reality in Gaming Market size was valued at USD 7.1 billion in 2022 and is poised to grow from USD 10.41 billion in 2023 to USD 92.49 billion by 2031, growing at a CAGR of 31.4% in the forecast period (2024-2031). 

The global virtual reality in gaming market is consolidated, with a few large-scale manufacturers holding the lion's share of the market. To increase their market share, most companies are investing heavily in research and development. Key players' primary strategies include product portfolio expansion and mergers and acquisitions. Key market companies are also investing in the development of enhanced virtual reality hardware based on cloud-based GPU-as-a-service capabilities. 'Meta  ', 'Google VR ', 'Sony Interactive Entertainment LLC ', 'Microsoft Corporation ', 'HTC Corporation ', 'Samsung Electronics Co., Ltd. ', 'Unity Technologies ', 'Crytek GmbH ', 'Valve Corporation ', 'Epic Games, Inc. ', 'NVIDIA Corporation. ', 'Sixense Enterprises, Inc. ', 'Virtuix Holdings, Inc. ', 'Survios, Inc. ', 'MindMaze SA ', 'WorldViz LLC ', 'Starbreeze AB ', 'Groove Jones  ', 'HTC VIVEPORT ', 'Varjo Technologies '

The development of new technologies such as Full High Definition (FHD), Ultra-High Definition (UHD), and 4K displays has increased the use of televisions for watching movies and playing video games. Increased investment in innovative technologies has also aided the expansion of virtual reality in the gaming business. VR in gaming provides a more realistic picture of games, making it more intuitive and profitable for players. 3D gaming glasses can assist in achieving a sense of genuine presence in five areas: interaction, emotions, immersion, real-time, and cognitive science. The Oculus Rift 3D gaming glasses include two HD screens for each eye and provide a superior vision during games.

Cloud models are being adopted by key market players in VR gaming. This adoption would provide customers with a better gaming experience and enable them to personalize their game collection. Additionally, cloud-based gaming systems enable rapid access to saved virtual reality games from any place and on any device. As a result, cloud gaming is regarded as one of the growing trends in this developing business. Furthermore, these cloud-based games include a wide range of features, such as unrestricted live streaming, storage capability, links across linked devices, and others. The growing customer demand for cloud-based virtual reality software is likely to drive market growth. In the virtual reality gaming sector, key firms are finalizing strategic alliances and collaborations to boost their market position through the use of cloud technology. In May 2019, for example, Microsoft Corporation announced a collaboration with Sony Corporation to develop an innovative cloud gaming platform and online content streaming solutions. This collaboration is also predicted to assist global market growth. Other gaming firms, such as NVIDIA Corporation, Powerful Micro Devices, and Huawei Technologies, are similarly investing in the development of advanced hardware based on GPU-as-a-service cloud capabilities. This is predicted to increase the market share of virtual reality (VR) in gaming.

In 2021, North America dominated the worldwide virtual reality gaming market. During the forecast period, it is expected to maintain its dominance. The rise in demand for advanced VR gaming consoles equipped with technologies such as VR/AR, 8K and 4K resolutions, IoT, cloud streaming, and 3D graphics can be attributed to the region's market growth. The United States and Canada make important contributions to the North American market. During the projected period, the United States is expected to control more than half of the market in North America. The introduction of core technologies such as augmented reality (AR) and virtual reality, 5G, 3D audio, enhanced graphics, and others has fueled growth in this region. Furthermore, the presence of significant firms such as Electronic Arts, Inc., Google LLC, Leap Motion, Inc., Facebook Technologies, LLC, Microsoft Corporation, and others in the region drives market growth. This region's players are focused on investing in the development of innovative hardware and software. For example, in September 2018, Oculus unveiled Oculus Quest, an all-in-one gaming gadget based on virtual reality technology.