Virtual Reality in Gaming Global Market Report 2024

The virtual reality in gaming market size has grown exponentially in recent years. It will grow from $15.26 billion in 2023 to $19.62 billion in 2024 at a compound annual growth rate (CAGR) of 28.5%. The growth observed in the historic period was largely influenced by consumer demand for immersive experiences, the expansion of high-end gaming platforms, continuous development of content and game titles, and significant enhancements in hardware capabilities.

The virtual reality in gaming market size is expected to see exponential growth in the next few years. It will grow to $55.21 billion in 2028 at a compound annual growth rate (CAGR) of 29.5%. The expected growth in the forecast period is likely driven by the rise of cloud gaming platforms, increased emphasis on social and multiplayer gaming experiences, and ongoing innovations in input devices and controllers. Key trends anticipated during this period encompass the expansion of storytelling and narrative-driven VR games, the development of VR fitness and wellness applications, a focus on user-generated content and modding, the integration of haptic feedback technology, and the introduction of VR game streaming services along with subscription-based models.

The growth of virtual reality (VR) in the gaming market is directly linked to the increased adoption of VR devices. These systems offer users a seemingly real virtual experience, allowing interaction within a 3D environment, creating a heightened sense of immersion. Reports from Statista in August 2023 highlighted the market size for virtual reality head-mounted displays (HMDs) at $5.5 billion in 2020, with projected growth to $18.6 billion by 2026. The surge in VR device adoption, with approximately 5.5 million units shipped in 2020, underscores the expected propulsion of virtual reality within the gaming market in the years ahead.

The anticipated growth in the Virtual Reality (VR) market within gaming is attributed to the launch of 5G technology. 5G's advent promises faster data speeds, lower latency, and increased connectivity, aligning perfectly with the requirements of immersive gaming experiences. Reports from March 2023 by Leftronic Inc. highlight China's 5G rollout in major cities in 2020 and anticipate global coverage of nearly 40% by 2024. The imminent launch of 5G technology is expected to propel the VR market's growth within gaming.

The gaming industry sees a significant shift with the introduction of 5G-based VR cloud games. Major players, such as Xbox Cloud Gaming and Meta, collaborated in December 2023 to provide users with high-quality gaming experiences across diverse platforms. This partnership harnesses fast 5G connections, anticipating a surge in 5G-based VR cloud games.

Major companies in the virtual reality gaming arena are dedicated to developing innovative products such as mixed reality headsets to drive market expansion. Meta Platforms, Inc., a US-based social technology company, launched the Meta Quest 3 in September 2023, a mixed reality headset equipped with advanced features for immersive VR experiences. This product promises to redefine virtual reality gaming by leveraging its advanced capabilities to deliver transformative gaming experiences globally, contributing significantly to the evolution of the gaming market.

In November 2023, Aonic Group, a Sweden-based video gaming company, acquired nDreams for $110 million. The acquisition aims to bolster its position, enhance knowledge exchange, and unlock synergies, fostering collaborative infrastructure and cross-team empowerment, with the ultimate goal of crafting high-quality gaming experiences through specialized teams. nDreams is a UK-based video game developer and publisher company.

Major companies operating in the virtual reality in gaming market report are Alphabet Inc., Samsung Electronics Co. Ltd., Microsoft Corporation, Facebook Technologies LLC, Intel Corporation, Qualcomm Inc., Sony Interactive Entertainment LLC, Advanced Micro Devices Inc., Nvidia Corp., Nintendo Co. Ltd., ZEISS Group AG, Valve Corporation, Electronic Arts Inc., Epic Games Inc., Razer Inc., Unity Software Inc., Sixense Enterprises Inc., HTC Corporation, Pimax Innovation Inc., Varjo Technologies Oyj, Oculus HR Ltd., Starbreeze Studios AB, Vuzix Corporation, Subpac Inc., Virtuix Inc., bHaptics Inc., Sensics Inc., Manus VR B.V., Fove Inc., Kaneva LLC, TPCAST Technology Inc., Infinadeck Corporation, Dexta Robotics Corporation Limited, Teslasuit Inc., YUR Inc.

North America was the largest region in the virtual reality in gaming market in 2023. The regions covered in the virtual reality in gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtual reality in gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components driving virtual reality gaming are software and hardware. VR gaming software constructs captivating 3D environments tailored for immersive gaming experiences. Software developers craft these virtual worlds, enabling user interaction with the environment and its elements. Games span diverse genres such as racing, adventure, fighting, shooting, mystery, puzzle, and science fiction, accessible across platforms such as personal computers, gaming consoles, and mobile devices. This technology serves various sectors, including commercial enterprises and individual users, offering a wide range of interactive experiences.

The virtual reality in the gaming market research report is one of a series of new reports that provides virtual reality in the gaming market statistics, including virtual reality in the gaming industry global market size, regional shares, competitors with virtual reality in the gaming market share, detailed virtual reality in the gaming market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality in the gaming industry. This virtual reality in the gaming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The virtual reality in the gaming market includes revenues earned by entities by offering hardware and software devices in a gaming industry that offer the ability to take players into the game in real-time. Virtual reality technology uses computing hardware, software, and other VR peripherals to create virtual environments that immerse the user in the game's 3D environment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.