Market Trends of Virtual, Augmented, And Mixed Reality Industry
Gaming to be the Fastest Growing End-user for VR
- Virtual reality (VR) has become widely used in the gaming sector because of its ability to deliver an immersive and dynamic experience. By sending players directly into the virtual environment, VR creates a sense of presence and immersion. Virtual reality headsets allow players to experience games from a first-person perspective. This heightened immersion enhances the gaming experience and makes players feel more connected to the virtual world and its characters.
- R&D of new technologies, such as Full High-Definition (FHD), Ultra-High Definition (UHD), and 4K displays, has boosted the adoption of TVs for playing games. The growth of virtual reality in the gaming industry has also been stimulated by increasing investments in new technologies. The future of the VR gaming industry is projected to be driven by continued improvement in graphics performance. Gaming companies use potent graphics processors to provide the best VR games to integrate physical and fantasy environments. Graphics play an essential role in providing a realistic gaming experience. Real-time expertise is offered to users by technologies such as 3D effects and interactive graphics while playing games or walking on virtual reality platforms.
- Rapid growth in AR and VR gamers worldwide has expanded the market’s horizon. According to NewGenApps, a provider of Artificial Intelligence, Machine Learning, Big Data Analytics, and AR/VR solutions, the global user base of AR and VR games will increase to 216 million users by 2025.
- The increasing demand for video games creates an opportunity for vendors to offer VR headsets. According to the Entertainment Retailers Association, in 2022, British consumers spent approximately GBP 4.66 billion (USD 5.95 billion) on video games. This represents a 2.3% increase from the previous year. By 2028, the market volume of VR headsets is expected to be over 27 million.
- The gaming industry recognizes the market potential of VR. As the technology becomes more accessible and affordable, the demand for VR gaming experiences is increasing. Game developers and publishers see VR as an opportunity to reach new audiences and create exciting, immersive experiences that stand out in a crowded market.
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North America to Hold Major Market Share in the Virtual, Augmented, and Mixed Reality Market
- The demand for virtual reality (VR) in North America has experienced rapid growth owing to the significant shift in individuals across various sectors engaging with technology. This increasing demand is fueled by the various applications of VR technology, from entertainment and gaming to education, healthcare, enterprise solutions, and others.
- The demand for VR is further propelled by technological advancements, making VR devices more accessible and user-friendly. The affordability and improved performance of VR headsets have contributed to broader adoption across North America, from tech enthusiasts to casual users seeking novel and engaging experiences. Hence, many companies are launching new products to increase their market share.
- As VR becomes more accessible and easier to use, it offers a lot of great possibilities for the government to explore innovative approaches. Hence, the US government uses VR as a valuable tool across multiple sectors. For instance, in September 2023, the US Food and Drug Administration announced that VR could deliver some clinical services, normally delivered only in clinics and hospitals, to patients in their homes or other non-clinical settings, and in the coming year, this will increase, which will boost the demand of VR.
- Due to several vendors making significant investments in market innovation and the US's dominant position in the global software market, the augmented reality market in North America is expected to grow significantly during the forecast period.
- Increased mobile penetration and the availability of new consoles in the North American market have contributed to tremendous growth in the gaming sector over the last few years. The US is one of the world's biggest gaming markets and offers many games for its citizens. In the United States, video gamers reported an increase of 45% in the time spent playing video games during the quarantine period of the COVID-19 pandemic compared to previous weeks.
- The demand for mixed reality (MR) in North America has experienced rapid growth owing to the significant shift in individuals across various sectors engaging with technology. Due to several vendors making substantial investments in market innovation and the US's dominant position in the global market, the mixed reality market in North America is expected to grow significantly during the forecast period.
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