The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Upsurge in the Demand for VR Headsets –VR headsets is the only thing needed for playing VR games. The surge in the demand for VR headsets is expected to drive the demand for virtual reality in gaming. For instance, it is forecasted that the global annual unit sales of VR headsets in 2022 to reach more than 8 million units.
Growing Use of Virtual Reality (VR)– According to reports, in 2021, it was observed that over 58 million people in United States had used VR at least once in a month.
Rising Number of Mobile Game Players – As per the statistics, in 2020, 43% of all the time spent on smartphones went to gaming and there were over 2.5 billion people are mobile game players.
Surge in the VR Game Spending – VR game spending accounted for ~0.4 % of the total revenue generated by gaming hardware and software developers in 2020.
Increasing Number of Female Gamers – According to reports, in the United States, female to male ratio of hyper-casual players was estimated to be ~55% to ~45%, while ~43% female owing VR devices in 2021.
The global virtual reality in gaming market is segmented and analyzed for demand and supply by devices segment into console/PC, mobile, and standalone. Amongst these segments, the console/PC segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing number of gamers playing VR games along with the surge in the players using console/PC for gaming worldwide. For instance, more than 70% of gamers in the United States who played video games were owning a console in 2020.
Regionally, the global virtual reality in gaming market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033, backed by the increasing game revenue in the region, along with largest gamers population. For instance, there were approximately 1.5 billion gamers in the Asia Pacific region with China having over 665 million gamers in 2020, the biggest number of gamers in the region and the world.
The global virtual reality in gaming market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing number of gamers as well as rising use of VR along with increasing number of female gamers are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~31% over the forecast period, i.e., 2023 – 2033.
Ans: Creation of VR games and devices are expensive as well as labor-intensive also available VR devices are incompetent in providing full-fledged experiences are some of the factors estimated to hamper the market growth.v
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Google Inc., HTC Corporation, Nintendo Co., Ltd., Samsung Electronics Co. Ltd., Sony Interactive Entertainment LLC, Razer Inc., Microsoft Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by devices, component, end-user, and by region.
Ans: The console/PC segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.