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The global virtual reality (VR) in gaming and entertainment market size was USD 4.15 Billion in 2018 is projected to reach USD 70.57 Billion by 2026, exhibiting a CAGR of 40.1% during the forecast period.
Virtual reality technology is designed to play with our senses and to bring us to any world we could imagine. VR technology is revealing new visionary about how the brain works. However, recent studies in the virtual environment state that the brains do not create the same detailed map as in the real physical space. Visual processing is the subset of multisensory integration simultaneously taking place in the brain. Billions of dollars are being invested in virtual reality gaming and entertainment. Also, researchers and academics have been using VR for their own purposes. Inspiration, engagement and impact are some of the reasons why brands are adopting VR in marketing strategies.
In the current scenario, the interaction between the brain and virtual reality has enabled VR in gaming and entertainment and others. Researchers are exploring the VR to offer an improved social attitude by helping society to see a virtual world from a different point of view.
Optical advances running parallel to the rapid developments in smart electronic devices and other digital instruments has enabled human to move around the virtual space. The Virtual reality headset is now rising into popularity. It provides an immersive gaming experience.
As new video games have been developed and expanded, more and more brands have recognized opportunities in the VR domain. For instance, Mountain Dew sponsors competitive gaming and other professional gamers to live stream their games for the advertisements of their brand.
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With VR in gaming reaching the users more quickly, video game developers are taking more advantage of the opportunity to explore new possibilities. VR has enhanced the structure of video games. It has provided a whole many ways for games to be enjoyed.
Moreover, the entertainment industry has been one of the significant use of virtual reality technology in the areas, including virtual museums, e.g., interactive exhibitions, theatre, e.g., interactive performances, virtual theme parks, and others.
“Proliferation of Smartphones and Superior Device Capabilities has Created Lucrative Growth Opportunities for VR Applications in Gaming”
Software developers have developed specific apps that support virtual reality content. The main component of VR is the super wide-angle lenses. Smartphones help capture 3D content with mobile applications. The super wide-angle lenses enable the user to explore a virtual world. The VR headset allows the sensors on the smartphone to track the motion of our head that gives a realistic three-dimensional space view to the user.
For instance, the Samsung Gear VR is a high-end mobile VR option. Just like Google daydream, the headset comes with a controller. Gear VR is compatible with high-end Samsung phones specifically, Samsung Galaxy S10, Samsung Galaxy S10 5G, Samsung Galaxy Note 9, and others.
Apart from this, the superior device capability boosts the adoption of virtual reality technology in different areas. For example, Google Cardboard is a VR headset device whose mobile phones do not support virtual technology content. Google cardboards are extremely affordable and accessible, but it differs in the quality.
Smartphone manufacturers are focusing on the adoption of technology, which is slowly finding its way towards VR in entertainment too. As a result, the proliferation of smartphones and superior device capabilities would drive market trend during the forecast period.
“Technological Advancements in VR Solutions have led to Substantial Investment in R&D”
Virtual reality is an amazing technology and has the potential to bring a lot more transformation in the gaming and entertainment industry. Gaming has always been a spearhead when it comes to technological advancements. Many game designers are providing a suite of software tricks to provide an enhanced gaming experience to gamers.
R&D in optical devices such as optical trackers, including beacon trackers, pattern recognition, laser ranging, and others also mechanical trackers, 3D input devices have significantly expanded the virtual reality market size.
However, a lack of social VR games, accessibility, and inadequate VR content may restrict market growth during the forecast period. Constraints on mobile-based virtual reality applications may limit the market revenue in the coming years. Other technological and economical constraint may be a barrier in the market growth. As VR device are costly small business cannot afford to make substantial investments compared to the large enterprises as a result it hampers the market growth.
Integration of advanced technologies such as artificial intelligence and virtual reality would offer a visceral experience to the users. AI can be a noteworthy assistant to the VR. It would replace the pictures by animations and combine and create realistic outcomes. AI and VR can transform the gaming environment and make it more believable and relatable.
By component, the market is segmented as hardware, software, and content. Revenue in the VR in gaming and entertainment market is generated primarily through the sale of hardware and content. Hardware involves devices such as consoles, keyboards, controllers, headsets and other devices whereas the software includes the actual games.
Different types of VR systems are classified according to different usage of technology. Generally, the VR systems are classified based on their level of immersion they provide, ranging from semi-immersive VR to fully immersive VR. Different types of VR use different hardware devices to perform various actions.
Software is the key factor to recognize VR applications in the gaming and entertainment sector. There are two main types of VR software available including toolkits and authoring systems. Toolkits include specific libraries and special programs to create VR applications. However, the authoring systems would hold the graphical interfaces.
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EON Reality, a provider of VR solutions provides various VR software including AVR platform which is an integrated suite of immersive training and performance products. HTC successfully runs the HTC VIVE which encompasses complete immersive experience in gaming.
According to a developer, software for VR technology has four main components 3D modeling software, 2D graphics software, digital sound editing software, and VR simulation software. Which eventually enhances the immersive experience in the virtual environment. Moreover, it supports the VR content from all aspects.
By device the Virtual Reality in gaming and entertainment market has been segmented as Mobile, Console/PC, and Standalone.
VR devices evolve from one form factor to many form factors from separated to integrated. Based on the devices the mobile phone has become one of the significant form factors for the VR applications. Phone-based VR has gained momentum in recent years. VR has also become a key field of new 5G commercial use.
For ICT giants such as Google, Apple, Facebook, virtual reality has become the mainstream of the market. Xtended reality is an umbrella term for VR and AR technologies, which are becoming an emerging market trend within the industries. VR has become the development focus in the mobile internet evolution era towards artificial intelligence.
Currently, the demand for console/PC games is much higher than the VR game as the console/PC games platform has a far larger installed base. As a result, the researchers and developers are focusing on integrating the fully immersive VR games with already established console/PC games.
The market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The regions are further categorized into countries.
North America generated a revenue of USD 1.78 Billion in 2018 and is anticipated to emerge dominant in the virtual reality in the gaming and entertainment market during the forecast period. Virtual reality has enabled the organization to accelerate change. As immersive and competitive gaming brings the core gaming experience to mobile devices, game designers are focusing on VR technology. These aspects fuel market growth in the region.
Europe is projected to be the second largest in the virtual reality in the gaming and entertainment market. The region generated a notable revenue in 2018 and is expected to generate significant revenue during the forecast period. Potential buyers who spend money on advanced games and smart devices would augment the market growth. Besides, as Germany is known as the Gaming hub, it would open many market opportunities in the future.
North America Virtual Reality in Gaming and Entertainment Market Size, 2018 (USD Billion)
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The Asia Pacific is expected to be one of the largest markets for virtual reality in gaming and entertainment. Developing economies such as India, China, and Japan would contribute to the highest market share across the region. China because of its massive population and rapid technological development the market would gain traction. The increasing number of professional gamers would help to expand the market size in the future.
Latin America has a medium to low internet penetration rate. As a result, the number of professional gamers, as well as other online gamers, would be very less compared to other regions. Hence there would be very less possibility to adopt the VR games or any other VR entertainment solution. This would restrict the market growth in the region.
“Major ICT giants such as Facebook, Samsung Electronics, Apple are focusing on VR mergers and acquisitions to strengthen the market position”
Oculus VR is an American company. The company is specialized in virtual reality hardware and software products. In 2014, Facebook acquired Oculus VR for USD 2.30 Billion. Oculus Rift, a virtual reality headset, was launched in 2012. After the success of Oculus Rift, the company partnered with Samsung to develop the Samsung Gear VR.
Samsung has been an active player in the VR in entertainment industry. The Samsung Gear VR offers 2D, 3D, and 360-degree content by connecting it with mobile devices. Users can connect other devices such as controllers, game controllers or headsets with the mobile device to enjoy an immersive experience.
The current race for the virtual reality entertainment business has led to acquisitions and mergers to boost market growth. Apple acquired SensoMotoric instruments' eye-tracking solution provider to drive the growth of VR technology. Similarly, Microsoft purchased automated 3D Simplygon, an optimization software vendor, to improve its Hololens technology.
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The report provides qualitative and quantitative insights into Virtual Reality in the gaming and entertainment market and detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the recent industry developments such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and key virtual reality in gaming and entertainment market industry trends, competitive landscape and company profiles.
Value (USD Billion)
Fortune Business Insights says that the value of the global virtual reality in the gaming and entertainment market was USD 4.15 Billion in 2018.
As per our study, the market is projected to reach USD 70.57 Billion by 2026.
The market will grow at a rate of 40.1% CAGR. There is a growing demand for VR applications in gaming from professional gamers.
The North America is projected to hold the largest market share in the virtual reality in the gaming and entertainment market. The rapid adoption of advanced technologies and substantial investments of organizations in R&D would expand the market size across the region.
In virtual reality in gaming and entertainment market, Hardware and Console/PC are the leading segments. Revenue in the virtual reality in the gaming and entertainment market is generated primarily through the sale of hardware and software. Whereas, fully immersive VR requires console/PC and other specific hardware devices.
Some of the driving factors for virtual reality in gaming and entertainment market are proliferation of smartphones and superior device capabilities. Also, technological advancements have led to substantial investment in R&D, which would drive the market growth in the coming years.
In virtual reality in gaming and entertainment market, some of the key players are Facebook Technologies, LLC., Wevr, HTC Corporation, Samsung, Google, and Apple Inc. These players are focusing on acquisition and partnership with other players to provide virtual reality in gaming and entertainment.
North America is expected to hold the highest market share in virtual reality in gaming and entertainment market. Virtual reality has enabled the organization to accelerate change. As immersive and competitive gaming brings the core gaming experience to mobile devices, game designers are focusing on VR technology. These aspects fuel market growth in the region.
Asia pacific is estimated to witness a rapid growth in the virtual reality in gaming and entertainment market during the forecast period.