Virtual Reality Game System Market Size, Share & Trends 2031

Report Description

The global virtual reality game system market size was valued at USD 10.5 Billion in 2022 and is likely to reach USD 76.1 Billion by 2031, expanding at a CAGR of 4.8% during the forecast period, 2023–2031. Rising adoption of advanced VR accessories and hardware among gamers is driving the market.

Rapid growth of 5G technology, cloud-based gaming technology, and innovative gaming content are key factors driving the adoption of VR gaming in the market. 5G-based VR cloud games are changing the gaming industry, by combining 5G connectivity, virtual reality, and cloud into one VR game system. Major virtual gaming companies are creating 5G games based on VR cloud, to receive high bandwidth and low latency services. These factors are expected to fuel the market during the forecast period. For instance,

• In May 2020, Archiact, a Canadian VR games studio partnered with Migu Co. Ltd, a Chinese consumer technology and subsidiary of telecom firm China Mobile. This partnership brings VR games to Migu’s 5G-cloud gaming platform. As per Archiact, this merger is expected to establish the vision for 5G VR cloud gaming and increase the accessibility of VR.

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The VR game system market is experiencing steady growth with increasing adoption by consumers and the online gaming industry. This growth is further driven by advancements in VR technology, including more immersive hardware and better-quality content. VR hardware includes headsets, motion controllers, and tracking systems. These components are becoming more affordable and accessible, making VR gaming highly appealing to the audience.

The research report finds that the COVID-19 pandemic propelled the market. The adoption of VR for remote collaboration, fitness, and education accelerated trends in the VR game system market. During the pandemic entertainment and games were the most popular uses of VR. An increase in demand for VR in gaming was observed as people were stuck at home during the lockdown. The pandemic evolved, the VR industry adapted to changing consumer behaviors and continued to innovate, and these effects on the market.

Impact of Artificial Intelligence on Virtual Reality Game System Market

Artificial Intelligence is expected to propel the market during the forecast period. AI algorithms are used to create more realistic and immersive virtual environments. AI-driven procedural generation techniques generate real-life landscapes, buildings, and characters that make VR worlds feel more natural. Additionally, AI adapts these environments in real-time, based on the player's actions, creating a dynamic and personalized gaming experience. AI collects necessary information and designs to create a gaming environment more realistic and natural.

• On June 27, 2023, Unity Technologies, the world’s widely used game development platform and growing real-time 3D (RT3D) content, launched an AI marketplace. AI will have a profound impact on the gaming industry. The company's share increased by 15% after announcing an artificial intelligence software marketplace.

Virtual Reality Game System Market Dynamics

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Major Drivers

Rising advancements in VR technology are driving the virtual reality game system market. Continuous developments in VR technology, such as improved graphics, higher-resolution displays, and more realistic haptic feedback are enhancing the VR gaming experience.

5G is expected to make the VR environment more accessible to businesses, by improving data streaming potential, boosting reliability, and reducing latency. Combined with IoT connections and AI 5G represents a new edge for virtual reality development. For Instance,

• In January 2023, Reliance JioGames in partnership with Ubitus, a leading cloud gaming service provider, introduced the ‘Future of Gaming’, named JioGamesCloud. This makes console quality easily accessible across devices. jioGamesCloud is likely to revolutionize the standards of gaming.

Existing Restraints

High Initial costs in virtual reality game systems are restraining the growth of the market. Despite lowering hardware costs, high-quality VR experiences still require a significant initial investment in hardware. High-end VR headsets such as the Valve Index or HTC Vive Pro, along with a powerful PC, could be expensive for many consumers.

Adverse health effects of using VR games are hampering the market. VR experiences could induce motion sickness in some users, which limits the time they spend in a VR environment. Moreover, issues related to comfort, including the weight and fit of VR headsets, are challenges that need to be addressed to improve user satisfaction.

Emerging Opportunities

Integration of AR and VR technologies is expected to provide hybrid experiences that combine the real world with virtual elements, creating growth opportunities for the market. AR gaming refers to the use of augmented reality technology in gaming applications. It allows users to interact with virtual objects or characters in the real world through their mobile devices or other AR-enabled devices.

The success of games such as "Pokémon GO" demonstrated the appeal of AR gaming. Combining AR and VR in gaming and other applications is projected to enhance the online gaming experience, thereby, further opportunities in the market.

Scope of Virtual Reality Game System Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Virtual Reality Game System Market Segment Insights

Component Segment Analysis

Based on component, the virtual reality game system market is trifurcated into content, software, and hardware. The hardware segment is further classified as devices, headsets, gloves, glasses, and others. The hardware segment is expected to expand at a significant growth rate during the projection period, owing to the growing demand and sales of VR-based hardware in the gaming industry.

In addition, rising improvements in virtual reality headsets are anticipated to drive the hardware segment further. The rising investments by hardware makers in creating new VR-compatible gaming devices are playing a crucial role in the improvement of VR headsets.

The content segment is anticipated to hold the major share of the market during the forecast period. The growth of the segment is attributed to the increasing demand for interactive games. The quality content is further driving innovative gaming content production, which is propelling the market.

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Console Type Segment Analysis

On the basis of console type, the global market is segregated into PlayStation, mobile, Mac, console/PC, X-Box, and standalone. The Console/PC segment is projected to register a considerable CAGR during the forecast period, owing to the rising demand for 3D gaming consoles.

These consoles are based on cloud services. Users are focused on investing in advanced 3D consoles, speakers, headphones, and devices, to experience 3D graphics with good sound effects. For instance,

• On February 22, 2023, Sony Corporation announced the launch of its next-generation PlayStation VR2 costing USD 549.99. It consists of sense controllers and a headset. The system requires a PS5 console to install. The VR2 brings major advances over the earlier version, such as an OLED display with a 110-degree field of view and support for 4K HDR playback.

The mobile segment is expected to grow at a significant rate during the projected period. The growing availability of the internet and advanced smartphones is propelling the demand for mobile-based virtual gaming. To experience the content users, install gaming software on their smartphones based on virtual reality technology. Rising investments from key players are creating lucrative opportunities in smartphone devices.

Regional Outlook

In terms of region, the global virtual reality game system market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the growing advances and adoption of core technology such as 3D audio, augmented reality (AR), 5G, virtual reality (VR), advanced graphics, and others.

The presence of major key players in the region is boosting investment in the development of advanced software and hardware, which is driving the growth of the market in the region. For instance,

• In May 2020, Apple Inc. acquired Next VR, a virtual reality gaming company based in California, which specializes in live recordings of concerts, sports matches, and events to experience in VR. Apple’s initiatives for games, entertainment, and sports are expected to be enhanced by this acquisition.

The market in Europe is anticipated to grow rapidly in the coming years. The growth is attributed to the increasing demand for virtual reality devices in gaming tournaments in emerging European countries such as Spain, Italy, Germany, and others.

Game developers in the region are highly focused on developing VR games by adopting advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI). Germany is considered the gaming hub, and the consistent development of VR gaming here is likely to create market opportunities during the forecast period.

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