Virtual Reality in Gaming Market Report 2025

The virtual reality in gaming market size has grown exponentially in recent years. It will grow from $19.24 billion in 2024 to $24.51 billion in 2025 at a compound annual growth rate (CAGR) of 27.4%. The growth in the historic period can be attributed to consumer demand for immersive experiences, growth of high-end gaming platforms, content development and game titles, enhanced hardware capabilities.

The virtual reality in gaming market size is expected to see exponential growth in the next few years. It will grow to $73.24 billion in 2029 at a compound annual growth rate (CAGR) of 31.5%. The growth in the forecast period can be attributed to emergence of cloud gaming platforms, focus on social and multiplayer gaming, innovation in input devices and controllers. Major trends in the forecast period include storytelling and narrative-driven VR games, VR fitness and wellness gaming, user-generated content and modding, integration of haptic feedback technology, VR game streaming and subscription services.

The growing adoption of VR devices is fueling the expansion of virtual reality in the gaming market. Virtual reality systems provide a lifelike experience that enables users to engage with a 3D environment, allowing them to interact with scenes and objects as if they were real. In the latest generation of video games, VR devices are used to immerse players in the gaming experience. For example, a report from Enterprise Apps Today in March 2023 indicated that over 70.8 million people in the U.S. engaged with virtual reality (VR) at least once a month, a significant increase from 6.8 million users in 2022. Additionally, in 2023, approximately 88% of VR headset users reported using their devices several times each month, while 60% engaged with VR multiple times each week. Therefore, the rising adoption of VR devices is anticipated to drive growth in the virtual reality gaming market in the coming years.

The introduction of the Sony PlayStation VR2 virtual reality headset is set to drive the growth of virtual reality in the gaming market. This next-generation headset is designed to significantly enhance the gaming experience. For instance, in December 2023, Sony Corporation, a Japan-based electronics company, launched the PlayStation VR2, marking an important advancement in the company's VR product lineup. This new headset aims to improve visual fidelity and interactive features, responding to the increasing demand for immersive gaming experiences. The PS VR2 is expected to utilize advanced technology to create a more engaging and dynamic virtual reality environment for users. Therefore, the launch of the Sony PlayStation VR2 virtual reality headset is anticipated to boost the growth of virtual reality in the gaming market in the coming years.

The gaming industry sees a significant shift with the introduction of 5G-based VR cloud games. Major players, such as Xbox Cloud Gaming and Meta, collaborated in December 2023 to provide users with high-quality gaming experiences across diverse platforms. This partnership harnesses fast 5G connections, anticipating a surge in 5G-based VR cloud games.

Major companies in the virtual reality gaming arena are dedicated to developing innovative products such as mixed reality headsets to drive market expansion. Meta Platforms, Inc., a US-based social technology company, launched the Meta Quest 3 in September 2023, a mixed reality headset equipped with advanced features for immersive VR experiences. This product promises to redefine virtual reality gaming by leveraging its advanced capabilities to deliver transformative gaming experiences globally, contributing significantly to the evolution of the gaming market.

In November 2023, Aonic Group, a Sweden-based video gaming company, acquired nDreams for $110 million. The acquisition aims to bolster its position, enhance knowledge exchange, and unlock synergies, fostering collaborative infrastructure and cross-team empowerment, with the ultimate goal of crafting high-quality gaming experiences through specialized teams. nDreams is a UK-based video game developer and publisher company.

Major companies operating in the virtual reality in gaming market include Alphabet Inc., Samsung Electronics Co Ltd., Microsoft Corporation, Facebook Technologies LLC, Intel Corporation, Qualcomm Inc., Sony Interactive Entertainment LLC, Advanced Micro Devices Inc., Nvidia Corp, Nintendo Co Ltd., ZEISS Group AG, Valve Corporation, Electronic Arts Inc., Epic Games Inc., Razer Inc., Unity Software Inc., Sixense Enterprises Inc., HTC Corporation, Varjo Technologies Oyj, Oculus HR Ltd., Starbreeze Studios AB, Vuzix Corporation, Subpac Inc., Virtuix Inc., bHaptics Inc., Sensics Inc., Fove Inc., Kaneva LLC, TPCAST Technology Inc., Infinadeck Corporation, Dexta Robotics Corporation Limited, Teslasuit Inc., YUR Inc.

North America was the largest region in the virtual reality in gaming market in 2024. The regions covered in the virtual reality in gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtual reality in gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Virtual reality (VR) in gaming is an immersive technology that allows players to interact with a computer-generated environment, providing a sense of presence in a three-dimensional space. Its main objective is to deliver a deeply engaging experience that goes beyond traditional gameplay, enabling players to explore expansive worlds and partake in realistic interactions. By harnessing the distinctive features of VR, it seeks to elevate emotional engagement and push the limits of interactive entertainment.

The primary components driving virtual reality gaming are software and hardware. VR gaming software constructs captivating 3D environments tailored for immersive gaming experiences. Software developers craft these virtual worlds, enabling user interaction with the environment and its elements. Games span diverse genres such as racing, adventure, fighting, shooting, mystery, puzzle, and science fiction, accessible across platforms such as personal computers, gaming consoles, and mobile devices. This technology serves various sectors, including commercial enterprises and individual users, offering a wide range of interactive experiences.

The virtual reality in the gaming market research report is one of a series of new reports that provides virtual reality in the gaming market statistics, including virtual reality in the gaming industry global market size, regional shares, competitors with virtual reality in the gaming market share, detailed virtual reality in the gaming market segments, market trends and opportunities, and any further data you may need to thrive in the virtual reality in the gaming industry. This virtual reality in the gaming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The virtual reality in the gaming market includes revenues earned by entities by offering hardware and software devices in a gaming industry that offer the ability to take players into the game in real-time. Virtual reality technology uses computing hardware, software, and other VR peripherals to create virtual environments that immerse the user in the game's 3D environment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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