In the next 4 years (2024-28), the virtual reality industry in gaming is expected to grow by $36.14 Billion, as predicted by Technavio. The market is predicted to grow at a CAGR of about 38.19%.
Two key factors that are leading to this rapid growth are the advanced VR devices and the trend towards 360-degree videos. Companies such as Meta, Sony, and HTC are creating advanced VR devices that are meant to be used specifically for gaming. Additionally, 360-degree videos are gaining popularity as they enhance the gaming experiences by allowing users to change perspectives.
Recording devices such as GoPro Freedom 360 and Kodak PIXPRO SP360 4K Dual Pro Pack are used to record high-quality 360-degree videos. On the other hand, more immersive content can be created with advanced devices such as 360Heroes.
With all these trends, VR is expected to become a mainstream platform in the gaming industry.
New Technologies In VR Industry
New technologies such as Augmented Reality, Spatial Audio, and Motion Captivity are contributing to the rapid growth of VR in the gaming industry. Gamers are consistently looking out for immersive experiences in VR, leading to companies investing in new VR games, consoles, and content.
Moreover, three-dimensional audio and haptic feedback enhance the gaming experiences solely. The VR gaming industry is also focusing on improving graphics and adding new games to expand the library. These games cover a lot of genres, from action and adventure to education and simulation.
Due to rising demand, competition is also emerging in the area of specialized equipment for VR gaming such as headsets and controllers. Other VR accessories include bodysuits, gloves, and Head-Mounted Displays (HMDs) that add motion tracking and 3D effects to VR games.
Challenges in VR Gaming Market
Despite advanced technologies, there are certain challenges that the VR gaming industry faces. Here are three major challenges faced in the VR gaming market:
- There are a lot of privacy concerns among gamers. Thus, they often block cookies or uninstall apps. Consequently, vendors face challenges in generating revenue and implementing freeware models. To address this issue, vendors now seek user consent but gamers stay cautious about extensive app usage. Hence, hindering the growth of the VR industry.
- The VR industry is expensive. High costs of VR hardware and software limit its access to a wider user base.
- It’s also hard to keep up with the demand of gamers and thus, developing engaging and immersive content for users is also a challenge. The need for constant innovation among competitors is challenging yet exciting to witness.
The VR industry is growing rapidly in the entertainment industry, with people looking for headsets specifically to play games and watch movies. Some of the best headsets leading the industry are Meta Quest 3, PSVR 2, and Valve Index.
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