Immersive Technology In Gaming Industry Global Market Report 2025

The immersive technology in gaming industry market size has grown exponentially in recent years. It will grow from $14.16 billion in 2024 to $18.37 billion in 2025 at a compound annual growth rate (CAGR) of 29.7%. The growth during the historical period can be credited to the rising popularity of full-body motion tracking, the expansion of cloud gaming, the surge in immersive gaming content, the emergence of smart glasses tailored for immersive gameplay, and the increased use of digital avatars.

The immersive technology in gaming industry market size is expected to see exponential growth in the next few years. It will grow to $51.55 billion in 2029 at a compound annual growth rate (CAGR) of 29.4%. Projected growth in the forecast period can be attributed to greater investment in immersive gaming startups, increased adoption of immersive games, growing demand for full-body haptic suits, heightened investment in motion-tracking wearables, and the rising trend of hybridization. Key trends anticipated during the forecast period include the integration of cloud gaming, AI-powered game personalization, enhanced haptic feedback, photorealistic graphics supported by ray tracing, the development of brain-computer interfaces, and 5G-enabled multiplayer gaming experiences.

The growing deployment of 5G networks is anticipated to drive the immersive technology in gaming industry market in the coming years. As the latest generation of mobile connectivity, 5G networks offer high-speed data transmission, ultra-low latency, and greater capacity to support advanced technologies like immersive gaming and the Internet of Things. The increasing demand for high-speed, low-latency connections to support real-time digital applications is contributing to the expansion of 5G networks. These networks enhance immersive gaming experiences by enabling real-time interactions through fast data transfers and minimal latency. This facilitates smooth multiplayer gameplay and cloud-based XR streaming, greatly improving responsiveness and immersion. For example, in March 2025, Nokia Corporation, a Finland-based telecommunications company, reported that India’s 5G subscriptions reached 290 million in 2024 and are projected to grow 2.65 times to 770 million by 2028. As a result, the expansion of 5G networks is a key factor boosting the immersive technology in gaming industry market.

Leading companies in the immersive technology in gaming industry are prioritizing the development of innovative solutions such as virtual reality games to offer lifelike digital experiences. Virtual reality games immerse players in interactive 3D environments using VR headsets and motion sensors. For instance, in February 2023, Sony Interactive Entertainment, a US-based technology company, introduced PlayStation VR2, a next-generation virtual reality headset designed for the PlayStation 5 console. It delivers a deeply immersive gaming experience with features such as a 4K HDR OLED display, eye tracking, headset vibration, 3D audio, and PlayStation VR2 Sense controllers that include haptic feedback and adaptive triggers. The device offers a wide 110-degree field of view, uses inside-out tracking without external cameras, and connects via a single cable for ease of setup.

In February 2025, Harlan Capital Partners, a US-based investment firm, acquired Immersive Gamebox for an undisclosed sum. This acquisition aims to rejuvenate the company’s operations by offering strategic direction, financial support, and operational expertise to accelerate its global expansion and improve its lineup of immersive gaming offerings. Immersive Gamebox is a UK-based digital entertainment company that creates group gaming experiences using immersive technology.

Major players in the immersive technology in gaming industry market are Apple Inc., Microsoft Corporation, Sony Interactive Entertainment LLC, NetEase Inc., Nintendo Co. Ltd., Electronic Arts Inc., Unity Technologies Inc., Epic Games Inc., Xreal Inc., nDreams Ltd., Survios Inc., Ready At Dawn Studios LLC, Schell Games LLC, Fast Travel Games AB, Cloudhead Games Ltd., Polyarc Inc., Resolution Games AB, Valve Corporation, Vertigo Games B.V., HTC Corporation, Kiksar VR, and YORD Studio s.r.o.

North America was the largest region in the immersive technology in gaming industry market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in immersive technology in gaming industry report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the immersive technology in gaming industry market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Immersive technology in the gaming sector involves advanced digital tools like virtual reality (VR), augmented reality (AR), and mixed reality (MR) that create highly engaging and interactive gaming experiences. These technologies replicate real or imagined environments to enhance the sensory engagement of players. The primary goal is to boost player involvement by making the gameplay more lifelike, interactive, and emotionally immersive.

The primary elements of immersive technology in gaming include hardware, software or platforms, and services. Hardware refers to the physical equipment that allows users to access and interact with virtual environments. The main technologies supporting immersive gaming - mixed reality, virtual reality, augmented reality, and 360-degree film - are used across multiple industries, such as education and training, emergency response, product design, and marketing and sales.

The immersive technology in gaming industry market research report is one of a series of new reports that provides immersive technology in gaming industry market statistics, including immersive technology in gaming industry industry global market size, regional shares, competitors with a immersive technology in gaming industry market share, detailed immersive technology in gaming industry market segments, market trends and opportunities, and any further data you may need to thrive in the immersive technology in gaming industry industry. This immersive technology in gaming industry 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 immersive technology in gaming industry market consists of revenues earned by entities by providing services such as 3D environment design, motion tracking solutions, haptic feedback systems, immersive audio engineering, and cloud-based extended reality (XR) content delivery. The market value includes the value of related goods sold by the service provider or included within the service offering. The immersive technology in gaming industry market also includes sales of motion-sensing controllers, haptic feedback equipment, immersive gaming chairs, 3D spatial audio systems, and extended reality (XR)-compatible gaming consoles and accessories. 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.

This product will be delivered within 3-5 business days.