NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global virtual reality (VR) market in gaming size is estimated to grow by USD 34.94 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 32.5% during the forecast period. Increasing adoption of vr in interactive Home entertainment industry is driving market growth, with a trend towards growing popularity of 360-degree content. However, privacy concerns over gamers information poses a challenge. Key market players include Advanced Micro Devices Inc., Alphabet Inc., bHaptics Inc., Carl Zeiss AG, Electronic Arts Inc., Fallen Planet Studios Ltd, HTC Corp., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., Nintendo Co. Ltd., NVIDIA Corp., Qualcomm Inc., Razer Inc., Samsung Electronics Co. Ltd., Sony Group Corp., Ubisoft Entertainment SA, Unity Technologies Inc., Virtuix Inc., and Wookey Technologies Inc..

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Market Driver

The Virtual Reality (VR) market in gaming has seen a significant shift in the wake of the worldwide economy’s downturn due to the lockdown. Pre-pandemic levels of sales have declined, but the introduction of advanced gaming consoles like PlayStation VR2 and new hardware like 5G technology offer promising growth opportunities. The gaming industry is investing heavily in technology, with manufacturers ramping up production of devices such as VR headsets, bodysuits, and gloves. However, concerns around adverse health effects like locomotion sickness and mental health are emerging. Companies like Huawei Technologies, Sony Corporation, and Microsoft are leading the charge in VR technology, with competitors including Oculus Rift, PlayStation VR, and Samsung Gear VR. The hardware segment, including optical gaming devices and RAM, is crucial, while software and content remain key drivers. The VR market is not just limited to consoles and PCs; mobile devices like smartphones are also gaining traction with cloud gaming technology. VR accessories, such as VR headsets and motion tracking devices, are essential for an optimal VR experience. Companies like HTC Vive, Meta, Plink, Samsung Gear, Google Daydream, and Oculus VR are leading the way in content creation tools and 3D environment development. Entrepreneurs and investors are also showing interest in VR technology, with startups like Teslasuit and NewGenApps pushing the boundaries of interactive graphics and 3D effects. Overall, the VR market is expected to grow as technology advances and content becomes more diverse and accessible. 

The global Virtual Reality (VR) content market has seen significant advancements with the creation of 3D, 4D, and 5D content. In 2020, VR emerged as a major platform for gaming, marking a transformation in the digital world. Notable companies like Facebook, Sony, and HTC have introduced VR devices, such as the Oculus Quest 2 by Facebook in September 2020. This technology’s integration into gaming is revolutionizing the industry and setting new standards for experiences. 

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Market Challenges

The Virtual Reality (VR) market in gaming has faced challenges in recent times. Pre-pandemic levels of sales have not been reached due to various factors like the worldwide economy and lockdowns. The introduction of advanced gaming consoles like PlayStation VR2 and new hardware like 5G technology and optical gaming devices presents opportunities. However, there are concerns over adverse health effects such as locomotion sickness and mental health. Manufacturing units are ramping up to meet demand for VR devices, including headsets, bodysuits, and gloves from brands like HTC Vive, Oculus Rift, PlayStation VR, and Samsung Gear VR. The software segment, with companies like Meta, Plink, and HTC Viveport, is investing in technology and content creation tools. Investors and entrepreneurs are backing startups like Teslasuit, providing funding for VR accessories and interactive graphics. Huawei Technologies and other tech giants are entering the market with their own VR headsets. The gaming industry is seeing a shift towards cloud gaming technology and VR content on mobile, console/PC, standalone, and VR technology. According to Comscore MMX, VR technology usage has increased, with popular games on NewGenApps offering 3D environments and interactive graphics. The VR market is expected to grow, with companies like Sony Corporation and Microsoft leading the way in the gaming console segment, and the hardware and PC/desktop segments also showing promise. RAM and smartphone segments are also expected to play a role in the growth of VR technology.The cost of virtual reality (VR) hardware is a significant barrier to the growth of the global VR market in gaming. The high price of VR headsets, such as Meta Quest 2 and HTC Vive, which can range from USD399 to USD599, and the requirement for high-performance computers and peripherals, limit the accessibility and usage of VR technology in various industries. This financial hurdle presents challenges for both consumers and enterprises, hindering market expansion and adoption. The substantial investment needed for a high-quality VR experience may deter potential users, making it essential for the industry to explore more affordable solutions to increase market penetration.

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Segment Overview 

This virtual reality (vr) market in gaming report extensively covers market segmentation by

ApplicationPCsConsolesMobile DevicesComponentHardwareSoftwareGeographyAPACNorth AmericaEuropeMiddle East And AfricaSouth America

1.1 PCs- The global virtual reality (VR) market in gaming is anticipated to experience growth due to the launch of console-specific VR headsets, such as Sony’s next-generation headset for the PlayStation 5. These headsets offer improved features, like a wider field of view and new controllers. Game developers are creating exclusive VR content with unique storylines to complement the hardware. However, the high price range of these headsets, between USD500 and USD900, may deter some consumers from investing in them. Despite this challenge, an increasing number of developers are expected to release VR-specific games during the forecast period.

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Research Analysis

Pre-pandemic levels, the Virtual Reality (VR) market in gaming was on an upward trajectory, driven by advancements in 5G technology and the release of new devices like PlayStation VR2. However, the worldwide economy’s downturn due to the lockdown led to a sales decline. Manufacturing units struggled to keep up with demand for VR accessories, such as headsets, bodysuits, and gloves from major players like HTC Vive. Game designers and investors continued to push boundaries with interactive graphics, 3D effects, and NewGenApps in a 3D environment. HTC Vive and Meta, among others, introduced innovative VR headsets, while 3Dinsider reported in interest for VR accessories. With the rollout of 5G and the continued development of motion tracking and haptic feedback technology, the future of VR gaming looks promising. Plink, a new player in the market, is set to disrupt the industry with its unique approach to VR gaming.

Market Research Overview

Pre-pandemic levels, the Virtual Reality (VR) market in gaming was on an upward trajectory, with 5G technology poised to revolutionize the industry. The introduction of advanced gaming consoles like PlayStation VR2 and optical gaming devices brought technology investments, fueling content creation tools and devices. However, the worldwide economy’s sales decline due to the lockdown led to a setback. Hardware and software companies, including Huawei Technologies, invested heavily in VR technology, developing VR accessories such as headsets, bodysuits, and gloves. The gaming industry saw in interest in VR, with investors and entrepreneurs backing new ventures. However, adverse health effects like locomotion sickness and mental health concerns emerged as challenges. VR technology evolved, with NewGenApps offering 3D environments and interactive graphics. VR headsets from companies like HTC Vive, Meta, Plink, Samsung Gear, Google Daydream, and Oculus RV continued to dominate the market. The gaming console segment, led by Sony Corporation and Microsoft, saw competition from the PC/desktop segment, with RAM and smartphone segments also joining the fray. The hardware segment continued to innovate, with standalone VR devices gaining popularity. The VR market in gaming is expected to grow further with the rollout of 5G technologies, offering faster download speeds and lower latency. The future of VR gaming is bright, with game designers and content creators continually pushing the boundaries of what’s possible in virtual reality.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ApplicationPCsConsolesMobile DevicesComponentHardwareSoftwareGeographyAPACNorth AmericaEuropeMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
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Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio