The worldwide market size for Virtual Reality (VR) in Gaming market is estimated to be USD 5.84 billion in 2017 and is estimated to grow at a CAGR of 26.8% during the forecast period. Rising demand for advanced technologies in gaming particularly, by youths coupled with increasing disposable income of people in developing countries willing to buy VR gaming, as well as highly competitive scenario for the development of VR technology in games are the factors responsible for the high growth of the market. Further, start-ups using crowdfunding for the development of wearables, software and accessories, is the current trend prevailing in the electronics games industry.
The companies operating in the market are significantly investing in Research & Development to develop consumer products that be connected to smartphones, consoles, and desktops, as most of the VR input devices are trial products. The demand is further expected to boost with the rising awareness among people for VR games and companies expanding their production activities. However, huge investments are required to purchase hardware related to VR technology, and most of the devices are prototypes, and are highly priced, which restricts the growth of the market to a certain extent. Although, with technological advancements, the price is anticipated to decrease during the forecast period. Device compatibility constraints as well as lack of awareness regarding the technology usage are some of the industry barriers.
On the basis of device, the gaming console segment is dominating the market for VR in gaming market and the segment is projected to continue its dominance till 2026. The gaming industry in always emerging and new generation of gaming consoles constantly replaces the previous used counterparts. Also, smartphone is anticipated to be the fastest growing segment. The growth is attributed to the cost-effectiveness and portability offered by smartphones to its users. The North America market for VR in gaming is currently leading with the largest market share among geographies. The growth in North America is attributed to high spending capacity of people residing in the region. Further, Latin America is expected to grow at a high CAGR owing to factors such as rapidly increasing sales of gaming consoles and large gamer base. Countries such as China, Brazil, Japan, and Germany are contributing to the large market share.
The major players operating in the Virtual Reality in Gaming include Microsoft Corporation, Sony Corporation, Electronic Arts, Nintendo Company Ltd., Linden Labs, Samsung Electronics Co. Ltd., Facebook (Oculus), Google, Inc., HTC Corporation, and Tesla Studios among others. The companies are engaged in developing various accessories such as devices for arms, treadmills, full bodysuits, and gloves.