Infographic: VR Gaming Destined to Remain Niche? (2024)

FAQs

Is VR still niche? ›

Yes. Meta, like them or loathe them, are doing more to change that than anybody else ever managed, but it's still niche. Try mentioning VR in a more general gaming forum or sub, and the response is often negative or (more often) just tumbleweed.

However, 10 years from now, everyone could have a playpen where they use VR and also physically move around – run, crouch, jump, etc. without any risk to their health. This would be huge for the gaming and fitness industry, which will jump at the chance to provide a much more engaging experience to their clients.

Current State of Virtual Reality Gaming

VR technology has also grown significantly in this period, with many new games in a wide variety of genres being released. These numbers are also expected to increase over the next few years, as VR games are more immersive and offer a different experience than traditional games.

The global virtual reality market size will reach $26.8 billion by 2027. An industry forecast report shows that the VR market worldwide is projected to reach $28.6 billion in the next five years. This is up from the $7.7 billion it was worth in 2020. This trend is following an impressive CAGR of 19% from 2021 to 2017.

Virtual reality (VR) has been touted as the future of entertainment and technology for decades. However, many are beginning to question whether VR has lost its momentum and is now in a state of decline. The answer is not a simple yes or no. While VR may be experiencing a lull in its growth, it is by no means dead.

3 At an active installed base of just 22 million in 2023, VR will therefore remain relatively niche for the time being. VR's future growth will hinge on creating applications for consumers and enterprises that take full advantage of the immersive medium and encourage repeat usage.

VR is a very exciting facet of technology that has a lot of potential for the future. While these headsets are not ready for widespread use yet, they're worth keeping an eye on. I'm very confident that we'll see major improvements in the next five to 10 years to make it more comfortable and practical for everyday use.

The necessary software, hardware, user-interface and network improvements and capacity will not be available or affordable by 2040. Most humans generally will continue to prefer real life rather than full-immersion VR; they'll expect VR to remain a niche space for gamers, entertainment seekers, training and education.

2030 will bring a fantastic hardware upgrade

The end of this decade will introduce us to a new level of VR headsets as 8K headsets will become commonplace. 8K resolution will give us a clearer picture, thus eliminating pixelization when observing objects up close.

In Jabil's Augmented and Virtual Reality Technology Trends Survey, technology and business stakeholders indicated that consumer use of AR/VR will see adoption first. Most importantly, almost 70% of respondents believe AR/VR will become mainstream within five years.

What is the conclusion of VR gaming? ›

Conclusion: The rise of virtual reality in gaming marks a significant shift in how we interact with digital entertainment. From its early beginnings to the modern revival, VR gaming has evolved dramatically, offering immersive and interactive experiences like never before.

Immersive Experiences: Virtual Reality and Beyond

This trend signifies a move towards more engaging and interactive forms of social media, where users are not just passive recipients of content but active participants in virtual worlds. The implications of these immersive experiences are vast.

The future of Virtual Reality

Virtual Reality is one of the technologies with the highest projected potential for growth. According to the latest forecasts from IDC Research (2018), investment in VR and AR will multiply 21-fold over the next four years, reaching 15.5 billion euros by 2022.

According to Deloitte, the VR market is expected to grow by 50% in 2023 compared with the previous year, generating almost USD 7 billion in global revenues.

Virtual Reality headsets are forecast to reach 24.7 million units by the end of 2028, representing a five-year compound annual growth rate (CAGR) of 29.2% as the consumer base slowly grows beyond core gaming use cases and as businesses adopt more headsets for training, design, and more.

In a recent report, IDC highlighted the sharp decline in global shipments of augmented and virtual reality (AR/VR) headsets over the first quarter of 2024. The report showed that shipments dropped by 67.4 per cent year over year in Q1.

The industry is growing at a fast pace, with the global VR market size projected to increase from less than 12 billion U.S. dollars in 2022 to more than 22 billion U.S. dollars by 2025.

Augmented reality (AR) and virtual reality (VR) aren't just for games anymore. These technologies provide innovative ways for brands to engage with their audiences. Marketers can create better customer experiences and open up new avenues for immersive storytelling and personalized marketing strategies.