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Virtual Reality (VR) in Gaming Market Size, Share & Industry Analysis, By Component (Hardware, Software, and Content), By Device (Mobile, Console/PC, and Standalone), and Regional Forecast, 2024-2032

Last Updated: June 24, 2024 | Format: PDF | Report ID: FBI100271



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The global virtual reality (VR) in gaming market size was USD 12.94 billion in 2023. The market is projected to grow from USD 16.86 billion in 2024 to USD 105.22 billion by 2032 at a CAGR of 25.7% over the forecast period.

The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The demand for virtual reality in gaming is primarily driven by the rising adoption of advanced VR hardware and accessories among gamers. The increasing number of small and start-up companies is entering the market with innovative software and content offerings. Besides, developments in 5G technology, innovative gaming content, and cloud-based gaming technology are some of the key drivers of the market. Further, as a part of the business strategy, prominent players are launching advanced hardware and accessories. For instance,

  • In February 2023, Sony Interactive Entertainment (SIE) announced the worldwide release of PlayStation VR2 - its latest virtual reality headset. PlayStation VR2 is designed to provide gamers with an immersive and high-quality virtual reality experience. It comes equipped with high-resolution visuals, genre-defining games, and technology such as PlayStation VR2 Sense, which provides a unique and realistic sensation that enhances the overall gaming experience.

The COVID-19 pandemic impacted the worldwide economy at every level. In the initial period of the pandemic, virtual accessories, hardware, and gaming devices witnessed a decline in their sales. The shutdown of manufacturing units highly impacted the production scale of its hardware.

However, the overall gaming industry is expected to rise with a significant CAGR during the forecast period. The initial data showcased a sharp rise in sales and playing time of online games during and post lockdown. For instance, in March 2020, Verizon Communication US recorded a 75% increase in gaming traffic in peak hours. Thus, the pandemic has initially slowed down the hardware segment. However, in the long term, the market is expected to grow remarkably.

Virtual Reality (VR) in Gaming Market Trends

Advent of Cloud Gaming Technology to Surge Virtual Reality Gaming Demand

Key players in the market are focused on adopting cloud models in VR gaming. This adoption would aid the users with an improved gaming experience and allow them to customize their gaming library. Also, instant access to the stored virtual reality games is possible through cloud-based gaming solutions from any location and on any platform. Owing to this, the adoption of cloud gaming is considered one of the emerging trends for this developing market. Also, these games based on the cloud offer a wide range of features, including unlimited live streaming, storage capability, links between the connected device, and others.

Investors and entrepreneurs have been showing a keen interest in the virtual reality space for the past few years. The entertainment and computing business will see a surge in immersive technology investments from various tech-based companies. Over the last five years, content creation tools have received around 43.5% of the total funding for VR, according to a NASSCOM study. This highlights the growing need for superior content development to retain the interest, demand, and supply of immersive experiences through virtual reality.

The rising demand among the users for cloud-based virtual reality software is expected to boost the market size. Key players are completing strategic partnerships and collaborations to strengthen their market position using cloud technology in the virtual reality gaming industry. Similarly, companies in the gaming industry, such as NVIDIA Corporation, Advanced Micro Devices, and Huawei Technologies, are investing in the development of advanced hardware based on GPU-as-a-service cloud capabilities. This is expected to boost virtual reality (VR) in gaming market share.

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Virtual Reality (VR) in Gaming Market Growth Factors

Launch of Advanced Gaming Consoles & Other Devices to Drive Adoption of Virtual Reality in Gaming

The increasing demand for advanced gaming consoles enabled technologies such as augmented and virtual reality, the Internet of Things, higher resolutions, 3D graphics, and cloud streaming. These integrated advancements are one of the key market drivers. Also, the rising demand for virtual reality accessories such as motion sensing devices, bodysuits, head-mounted displays, gloves, masks, treadmills, backpacks, and 3D headphones is expected to boost the market growth. The key players such as Microsoft Corporation, Sony Corporation, and others are focusing on launching advanced gaming consoles and accessories based on its capabilities. For instance,

  • In April 2021, Sony Corporation announced the launch of its next-generation PlayStation VR for PS5 next year. The newly launched PSVR2 will run on a single cord connection to reduce play’s mess. 

Also, key players are significantly investing in the research and development division for the development of optical gaming devices based on this technology. With a rise in the adoption of optical gaming devices and advanced consoles, the market size is also expected to grow during the forecast period.


Adverse Health Effect May Hamper Market Growth

Prolonged usage of virtual reality in gaming might negatively impact the gamers’ health. For instance, the technology uses devices that mimic the movement, but there is not any actual movement of the gamer. This can create locomotion sickness amongst the players.  Further, it can impact the mental health of the gamer owing to its potential addiction. As per the psychologists, the technology removes reality, and the players can lose the realism aspect. The violent and illegal game content might addict the gamer to committing the crime in real life. The growing immersive and interactive games are further expected to damage players’ wellbeing. This is expected to hinder the VR in gaming market growth.

Virtual Reality (VR) in Gaming Market Segmentation Analysis

By Component Analysis

Rising Sale of VR Hardware to Drive the Market Growth

Based on components, the market is segmented into hardware, software, and content. Hardware is expected to dominate the market in terms of revenue during the forecast period. Hardware includes devices such as consoles, head-mounted devices, controllers, keyboards, gloves, headphones, bodysuits, and others. The hike in revenue is primarily owing to the demand and sales of VR-based hardware in the gaming industry. Key players in the market such as Razer, Inc., Leap Motion Inc., Virtuix, and VirZoom, Inc. are focused on the development of advanced hardware-based technology for gaming purposes. With the development of advanced hardware, the market growth is expected to boost during the forecast period.

Software is one of the key components in the gaming market, and this segment is expected to grow at a significant CAGR during the forecast period. It is available in authoring systems and toolkits, which comprise precise libraries and advanced programs to create gaming applications. The content segment is set to gain rapid growth during the forecast period. The increasing demand for interactive games is driving innovative gaming content production.

By Device Analysis

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Increasing Demand for 3D Gaming Consoles to Fuel Console/PC Segment

Based on devices, the market is categorized into mobile, console/PC, and standalone. Console/PC is expected to dominate the market by holding the maximum share during the forthcoming period. The growth is driven by the rising demand for 3D gaming consoles based on cloud services among the end-users.

Furthermore, the mobile and standalone segments are expected to grow with a significant CAGR during the forecast period. The increasing availability of advanced smartphones and internet capabilities is driving the demand for mobile-based virtual gaming. In addition, VR games are now being enjoyed by a whole new group of users who may not be traditional gamers but are spending a considerable amount of time playing such games on their smartphones. It is observed that consumers in China and India primarily use their smartphones or tablets to play VR games. The growing gaming opportunities in standalone devices are also driving vast investments from key players such as Oculus VR Quest and HTC VIVE Focus.


Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America Virtual Reality (VR) in Gaming Market Size, 2023 (USD Billion)

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North America is expected to dominate in terms of the market share in 2020. The growth in this region is owing to the advent of core technology such as augmented reality (AR) and virtual reality, 5G, 3D audio, advanced graphics, and others. Also, the market growth is driven by the presence of key companies such as Electronic Arts, Inc., Google LLC, Leap Motion, Inc., Facebook Technologies, LLC, Microsoft Corporation, and others in the region. The players in this region are focused on investing in the development of advanced hardware and software.

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Europe is expected to grow significantly owing to the rising demand for virtual reality devices in gaming tournaments in countries such as Germany, Italy, Spain, and others. These tournaments are based on advanced games with built-in VR technology. Additionally, in Europe, the government and major gaming organizers are focused on initiating various gaming tournaments. This is likely to boost the market share in the region. Also, Germany is considered the gaming hub. The country would create many market opportunities in the upcoming future.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. Emerging countries such as India, South Korea, China, and Indonesia would contribute to the market growth in the region. As per the data of Comscore MMX, countries such as India, Indonesia, Japan, Australia, and more have the largest gaming audience and websites. This is driving the market opportunities in the region.

The demand for immersive gaming is expected to run strong in the Middle East and Africa. The MEA region is among the world's leading gaming and e-sports markets. The region is expected to experience significant growth in the future due to its highly-engaged gaming audience. Within the region, Saudi Arabia, Iran, UAE, and Egypt have larger gaming populations. Market growth is being driven by the increasing penetration of smartphones and online gaming, with Mixed Reality-based apps and games expected to create more opportunities in the near future. Similarly, Latin America is likely to witness steady growth with the rising demand from young gamers for the consoles and headsets in the region.

List of Key Companies in Virtual Reality (VR) in Gaming Market

Key Players Seek Constant Developments to Strengthen their Market Positions

The key players in the market are focused on developing prototypes for gaming hardware, software, and content. The players are investing in building advanced virtual reality headsets to offer immersive and interactive gaming experiences to gamers. Also, the prominent players are involved in various acquisitions, partnerships, collaborations, and mergers to expand the market presence.

  • January 2022 – Nintendo announced that the company would release its Switch OLED model in mainland China. Switch OLED was launched internationally in 2021, and the company plans to launch it in China.


  • Microsoft Corporation (Washington, U.S.)

  • Facebook LLC (Oculus VR) (California, U.S.)

  • Nvidia Corporation (California, U.S.)

  • HTC Corporation (Taoyuan City, Taiwan)

  • Unity Technologies (California, U.S.)

  • Magic Leap, Inc. (California, U.S.)

  • Firsthand Technology Inc. (Washington, U.S.)

  • Apple Inc. (California, U.S.)

  • Sony Corporation (Tokyo, Japan)

  • Ubisoft Entertainment SA (Montreuil, France)


  • June 2023 – Meta Platforms launched a VR gaming subscription service called Meta Quest+. As a part of this initiative, subscribers can keep the games while they remain active members of Meta Quest+.

  • February 2023 – Microsoft and NVIDIA announced a long-term partnership that aims to bring Xbox PC games to the NVIDIA GeForce NOW cloud gaming service. The partnership will enable gamers from over 100 countries to stream Xbox PC titles from GeForce NOW to a variety of devices, such as macOS, PCs, smartphones, and Chromebooks. With more than 25 million members, GeForce NOW is a popular cloud gaming service that gives gamers the flexibility to play their favorite PC games on any device.   

  • January 2023 – HTC VIVE launched its new consumer product, VIVE XR Elite. The headset combines Virtual Reality (VR) and Mixed Reality (MR) capabilities into one compact and versatile device that is perfect for gaming, fitness, productivity, and more.   

  • November 2022 – Meta unveiled an app called the XTADIUM on Meta Quest, enabling users to experience a 180-degree VR view of their favorite sports. The app provides up to eight different camera angles and real-time statistical overlays for users.   

  • October 2022 – Microsoft entered into a partnership with Meta to provide a VR experience. The collaboration aimed to support Meta's grand Metaverse plan while bringing Microsoft's productive tools to VR headsets.   


An Infographic Representation of Virtual Reality Gaming Market

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The global VR in gaming market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 25.7% from 2024 to 2032


Value (USD billion)


By Component

  • Hardware

  • Software

  • Content

By Device

  • Mobile

  • Console/PC

  • Standalone

By Region

  • North America (By Component, By Device, and By Country)

    • U.S. (By Device)

    • Canada (By Device)

  • Europe (By Component, By Device, and By Country)

    • U.K. (By Device)

    • Germany (By Device)

    • France (By Device)

    • Spain (By Device)

    • Rest of Europe

  • Asia Pacific (By Component, By Device, and By Country)

    • China (By Device)

    • Japan (By Device)

    • India (By Device)

    • Southeast Asia (By Device)

    • Rest of Asia Pacific

  • The Middle East & Africa (By Component, By Device, and By Country)

    • GCC (By Device)

    • South Africa (By Device)

    • Rest of the Middle East & Africa

  • Latin America (By Component, By Device, and By Country)

    • Brazil (By Device)

    • Mexico (By Device)

    • Rest of Latin America

Frequently Asked Questions

The market is projected to reach USD 105.22 billion by 2032.

The market is projected to grow at a CAGR of 25.7% over the forecast period.

The console/PC device segment is likely to lead the market.

The launch of advanced gaming consoles & other devices is set to drive the market.

Microsoft Corporation, Facebook LLC (Oculus VR), Nvidia Corporation, HTC Corporation, Unity Technologies, Samsung Group, Magic Leap, Inc., Qualcomm Technologies, Inc., and Google LLC are the top players in the market.

North America is expected to hold the highest market share.

Asia Pacific is expected to grow with the highest CAGR over the forecast period.

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