Virtual Reality In Gaming Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 35.49 Billion |
| Market Size (2030) | USD 85.45 Billion |
| Growth Rate (2025 - 2030) | 19.21% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Virtual Reality In Gaming Market Analysis by Mordor Intelligence
The virtual reality in gaming market size is estimated at USD 35.49 billion in 2025, and is expected to reach USD 85.45 billion by 2030, at a CAGR of 19.21% during the forecast period from 2025 to 2030. Hardware advances in display resolution, optical design, and foveated rendering are raising immersion levels and shortening replacement cycles. Sub-USD 400 eye-tracking standalone headsets are removing price and performance barriers in emerging economies, while 5G-edge rendering bundles from leading telcos enable cloud-based gaming with latency below 10 ms. Location-based entertainment (LBE) chains are scaling rapidly across tier-1 Asian cities, introducing premium headsets to first-time users. Interoperability standards, such as OpenXR and Khronos, are reducing porting costs, giving studios the confidence to launch AAA VR-exclusive titles that now deliver over 20 hours of narrative gameplay.
Key Report Takeaways
- By component, hardware led with a 58% market share in the virtual reality in gaming market in 2024; software is projected to expand at a 20.81% CAGR through 2030.
- By device type, PC/Desktop-tethered systems held 42% of the virtual reality in gaming market size in 2024, while standalone headsets are forecast to grow at a 21.91% CAGR from 2025 to 2030.
- By hardware category, head-mounted displays captured 61.9% of the virtual reality in gaming market share in 2024; gesture-tracking devices are projected to show the fastest growth at a 20.57% CAGR to 2030.
- By game genre, action titles accounted for 34% of 2024 revenue; sports and fitness games are set to rise at a 21.23% CAGR to 2030.
- By end-user, home users represented 70% of the 2024 demand, whereas commercial arcades and LBE venues are projected to advance at a 20.87% CAGR through 2030.
- By region, North America controlled 38.60% revenue in 2024, whereas Asia Pacific is poised for the fastest 21.82% CAGR to 2030.
Global Virtual Reality In Gaming Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| AAA VR-exclusive franchises refreshing hardware cycles | +3.2% | North America and Europe | Medium term (2-4 years) |
| Expansion of location-based arcades in tier-1 Asian cities | +2.8% | Asia Pacific core; spill-over to MEA | Short term (≤ 2 years) |
| 5G edge-rendering bundles cutting latency | +2.1% | South Korea, Nordics, selective global rollout | Medium term (2-4 years) |
| Sub-USD 400 eye-tracking stand-alone headsets | +1.9% | Global with early traction in India, Southeast Asia, LATAM | Short term (≤ 2 years) |
| OpenXR interoperability trimming porting costs | +1.4% | Global | Long term (≥ 4 years) |
| EU immersive-content tax rebates | +0.8% | France and Germany | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Influx of AAA VR-exclusive franchises re-energising upgrade cycles
Premium, story-driven releases are stimulating headset replacements in North America and Europe. Average user spending increases by 40% when blockbuster titles are added to the catalogue, validating the business case for larger studio budgets. The shift from short demos to 20-hour campaigns elevates VR from curiosity to core platform status for enthusiastic console players. Sixty-four percent of U.S. VR users identify gaming as their primary activity, assuring publishers of a sizeable paying audience.[1]VirtualSpeech, “VR Stats for the Training & Education Industry in 2025,” virtualspeech.com
Expansion of location-based VR arcades in tier-1 Asian cities driving commercial demand
Real-estate constraints in dense urban centres such as Seoul, Shanghai, and Tokyo are steering consumers toward public VR venues. LBE operators invest in rugged, hygienic headsets and multi-user tracking systems, generating ancillary demand for premium peripherals. Culturally localised content increases repeat visitation and encourages word-of-mouth growth. The LBE market is projected to reach USD 40.3 billion by 2032, up from USD 13.9 billion in 2024.
5G-edge rendering bundles slashing latency barriers
Telcos in South Korea and the Nordics are integrating Multi-access Edge Computing nodes with 5G-Advanced networks. Research published on arXiv shows that this reduces stalling by up to 2.8% and increases bandwidth utilization above 30% for time-critical workloads. [2]arXiv Authors, “5G-Advanced L4S for Cloud XR Performance,” arxiv.org By offloading real-time rendering to the network edge, operators can deliver console-grade visuals to low-cost headsets, unlock subscription revenue, and create differentiated tariff bundles. The approach also supports seamless cross-device handoff that preserves session state between mobile devices, consoles, and standalone headsets.
Sub-USD 400 eye-tracking standalone headsets unlocking emerging-market adoption
Affordable devices featuring foveated rendering deliver premium visuals on mid-range silicon while opening new interaction modes such as gaze-driven menus. Eye-tracking enhances accessibility for users with limited mobility and underpins objective analytics in training modules. Learning retention improves 76% in eye-tracking-enabled VR lessons compared with conventional formats.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Motion-Sickness-Driven Refund Rates (>25%) Curtailing Average Session Lengths | -2.4% | Global | Short term (≤ 2 years) |
| Pancake-Lens Supply Bottlenecks Restricting Stand-alone Shipments (Q1-Q3 2025) | -1.8% | Global, concentrated in Asia Pacific manufacturing | Short term (≤ 2 years) |
| Strict Health-Safety Certification for Vertigo Risks in Japan Raising Compliance Costs | -0.9% | Japan, potential spillover to Asia Pacific | Medium term (2-4 years) |
| Mobile Mixed-Reality Titles Cannibalising Premium-Mobile VR in North America | -1.1% | North America, selective European markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Motion-sickness-driven refund rates curtailing session lengths
Cybersickness remains a major deterrent, with refund rates exceeding 25% for rapid-motion genres. Average playtime is capped at 45 minutes, well below console norms. A comparative study found that headsets offering continuous interpupillary adjustment cut Simulator Sickness Questionnaire scores significantly. Elevated hardware prices restrict these comfort features to the premium tier, entrenching a two-speed market.
Pancake-lens supply bottlenecks restricting standalone shipments
Yield shortfalls at key optical suppliers raised pancake-lens prices nearly 30% through Q3 2025. Manufacturers either postpone launches or revert to heavier Fresnel optics, dampening consumer enthusiasm for lightweight designs. The shortage coincides with holiday build-outs, risking shelf gaps that could allow tethered systems to recapture share.
Segment Analysis
By Component: Hardware dominates while software accelerates
Hardware captured 58% of 2024 revenue as consumers prioritised visible upgrades in resolution, optics, and ergonomics. The virtual reality in gaming market size for software is forecast to grow at a 20.81% CAGR, propelled by subscription libraries that generated USD 11.7 billion in 2023. Subscription access reduces upfront cost anxiety and expands back-catalogue monetisation. Cloud streaming enabled by 5G allows for premium visuals on entry-level devices, thereby broadening the adoption base.
The hardware lead reflects a technology-driven phase where leapfrog optical advances spark immediate purchase intent. Eye-tracking chips optimise GPU load via foveated rendering, while gesture sensors enrich interaction fidelity. By 2026, over 85% of immersive apps are expected to rely on 5G cloud services, paving the way for a gradual shift in revenue toward services and in-app transactions.
Note: Segment shares of all individual segments available upon report purchase
By Device Type: Standalone headsets challenge PC dominance
PC/Desktop-tethered rigs accounted for 42% of 2024 spending, valued for their high-end graphics and mod support. Standalone devices are projected to outpace the market with a 21.91% CAGR, driven by the promise of cable-free play. Sony lowered PlayStation VR2 pricing to USD 399.99 to spur cross-platform uptake. Cloud-streamed content blurs traditional device classes, letting mid-range hardware access ultra settings, a shift likely to drive the next leg of growth for the virtual reality in gaming market.
Enthusiast PCs will remain indispensable for simulation purists; however, mass-market momentum is shifting toward lightweight, self-contained headsets. Battery-life gains and Wi-Fi 7 modules remove friction, while enterprise fleet managers appreciate the easier deployment of standalone units in training labs.
By Hardware Category: HMDs lead while gesture-tracking accelerates
Head-mounted displays controlled 61.9% of spending in 2024, underscoring their status as the gateway device. Gesture-tracking peripherals are climbing at 20.57% CAGR as natural input schemes reduce onboarding friction. Directional wind haptics lifted presence and emotional enjoyment in controlled tests.[3]Yung-Ting Chen and Meng-Shiuan Tsai, “The Impact of Wind Experience on VR Game Immersion,” springer.com Vendors now bundle gloves and finger trackers with flagship devices, anticipating demand for tactile realism.
Accessory makers focus on haptic vests, treadmills, and scent modules to deepen sensory immersion. Camera rigs for 360° capture open new revenue streams in tourism and events, linking virtual reality gaming to real-world experiences.
By Game Genre: Action leads while sports and fitness surge
Action shooters delivered 34% of 2024 revenue, benefiting from intuitive, body-mapped aiming and locomotion. Sports and fitness titles are racing ahead at 21.23% CAGR as biometric tracking gamifies workouts. Downloads of top VR Android games increased by 40% year-over-year in H1 2024. Racing and simulation genres appeal to seated players seeking a lower risk of motion sickness, while horror franchises utilize VR’s sensory isolation to heighten suspense.
Investors view sports IP as a bridge to mainstream audiences; the Premier League’s stake in Rezzil hints at licensed training products that merge professional coaching with home fitness.
Note: Segment shares of all individual segments available upon report purchase
By End-user: Home users dominate while commercial venues surge
Households accounted for 70% of the 2024 demand thanks to falling headset prices and expanding content bundles. The virtual reality in gaming market size for commercial arcades is set to expand at 20.87% CAGR as operators roll out premium multi-user arenas in malls and tourist hubs. Commercial customers amortise hardware faster, allowing them to install cutting-edge rigs that outsiders would not buy individually.
Educational institutes adopt VR for skill acquisition, with trainees making 40% fewer errors in medical simulations than in traditional labs. Enterprise demand thus complements entertainment usage, supporting a diversified revenue mix.
Geography Analysis
North America led revenue in 2024, underpinned by mature broadband infrastructure, high disposable income, and a culture of early technology adoption. AAA exclusives drive repeat buying among console owners, while U.S. consumer spending on all video games reached USD 58.7 billion in 2024. Mixed-reality titles on smartphones are siphoning casual users, prompting hardware vendors to differentiate with advanced optics and exclusive content.
Asia-Pacific is the fastest-growing region, buoyed by LBE chains flourishing in dense urban corridors where limited living space curtails home installations. Japan’s gaming market could surpass USD 50.9 billion in 2025. Regulatory scrutiny over vertigo risks raises certification costs, but carriers offset hurdles by bundling 5G data and cloud rendering packages. China’s manufacturing base accelerates standalone headset penetration, and the dominance of Chinese language titles on Steam signals mounting localisation priorities for global studios.
Europe benefits from generous production rebates and an emphasis on user privacy, fostering consumer trust in VR platforms. The EU projects immersive tech could support up to 480,000 jobs by decade’s end, European Commission. Governments in France and Germany view VR as a strategic creative industry, subsidising narrative-rich development. The Middle East, led by Dubai’s ‘VR City 2030’, invests in flagship attractions and e-sports arenas, with the regional market on track for 7.6% annual growth.
Competitive Landscape
Meta held roughly 65% of 2024 headset shipments, securing platform lock-in through aggressive pricing and a sprawling content library. Apple’s Vision Pro introduces a premium tier that emphasizes spatial computing quality and cross-device integration, potentially segmenting the virtual reality in gaming market in gaming into mass and luxury tiers. Hardware makers partner with studios to secure exclusives; such deals now represent a decisive purchase driver for 3 in 5 new buyers.
Cloud gaming entrants utilize 5G networks to circumvent high upfront hardware costs, posing a threat to incumbent economics with subscription-based business models. Accessory specialists innovate in haptic suits and omnidirectional treadmills to carve out defensible niches. The XR Association forecasts that immersive technology could generate USD 5 trillion in economic impact by 2030.
Despite Meta’s lead, the combined share of the top five suppliers hovers near 65%, indicating a moderately concentrated but contestable market. White-space opportunities remain in accessibility, medical rehabilitation, and AI-driven personalisation, areas where smaller innovators can differentiate without matching the scale of the giants.
Virtual Reality In Gaming Industry Leaders
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Oculus VR (Facebook Technologies LLC)
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HTC Vive
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Nintendo Co Limited
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Microsoft Corporation
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Valve Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: Sony cut PlayStation VR2 price to USD 399.99 and enabled Steam PC compatibility, improving content breadth and value.
- March 2025: The Premier League invested in Rezzil to co-develop an official VR football game aimed at global fans
- February 2025: Meta unveiled prototype research glasses optimized for immersive gaming overlays, hinting at AR-VR convergence paths.
- December 2024: Global VR shipments slid 4% year-on-year in Q3 2024 as tethered headsets fell 50%, yet standalone units grew 14%.
Global Virtual Reality In Gaming Market Report Scope
The study analyzes the demand for virtual reality in gaming market based on historical trends and current scenarios. As VR is expected to find traction among gaming enthusiasts, the study analyzes the key growth influencers and the demand from other forms of extended reality-based technologies (AR and MR). The study covers key segments, including hardware type and geography.
The Virtual Reality in Gaming Market Report is Segmented by Component (Hardware, Software, and Content/Services), Device Type (PC/Desktop-Tethered, Gaming Console, Stand-alone Headsets, Premium Mobile, and Cloud/Streaming VR), Hardware Category (Head-Mounted Displays, Gesture-Tracking Devices, VR Accessories, and VR Cameras and 360° Capture), Game Genre (Action and Shooter, Racing and Simulation, Adventure and Role-Playing, Horror and Puzzle, Sports and Fitness, and Social/Multiplayer Worlds), End-user (Individual/Home, Commercial Arcades and LBE, Esports and Competitive Gaming Venues, and Educational and Training Institutions), and Geography (North America, South America, Europe, Asia Pacific, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).
| Hardware |
| Software |
| Content / Services |
| PC / Desktop-Tethered |
| Gaming Console |
| Stand-alone Headsets |
| Premium Mobile |
| Cloud / Streaming VR |
| Head-Mounted Displays (HMDs) |
| Gesture-Tracking Devices (GTDs) |
| VR Accessories (Haptics Treadmills Vests) |
| VR Cameras and 360 Capture |
| Action and Shooter |
| Racing and Simulation |
| Adventure and Role-Playing |
| Horror and Puzzle |
| Sports and Fitness |
| Social / Multiplayer Worlds |
| Individual / Home |
| Commercial Arcades and LBE |
| Esports and Competitive Gaming Venues |
| Educational and Training Institutions |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Kenya | ||
| Rest of Africa | ||
| By Component | Hardware | ||
| Software | |||
| Content / Services | |||
| By Device Type | PC / Desktop-Tethered | ||
| Gaming Console | |||
| Stand-alone Headsets | |||
| Premium Mobile | |||
| Cloud / Streaming VR | |||
| By Hardware Category | Head-Mounted Displays (HMDs) | ||
| Gesture-Tracking Devices (GTDs) | |||
| VR Accessories (Haptics Treadmills Vests) | |||
| VR Cameras and 360 Capture | |||
| By Game Genre | Action and Shooter | ||
| Racing and Simulation | |||
| Adventure and Role-Playing | |||
| Horror and Puzzle | |||
| Sports and Fitness | |||
| Social / Multiplayer Worlds | |||
| By End-user | Individual / Home | ||
| Commercial Arcades and LBE | |||
| Esports and Competitive Gaming Venues | |||
| Educational and Training Institutions | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| ASEAN | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Kenya | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the virtual reality in gaming market?
The virtual reality in gaming market stands at USD 35.49 billion in 2025 and is expected to grow to USD 85.45 billion by 2030.
Which component segment is growing fastest?
Software is the fastest-growing component, with a 20.81% CAGR forecast for 2025-2030.
How quickly are standalone headsets expanding?
Standalone headsets are projected to grow at a 21.91% CAGR, challenging PC-tethered systems’ dominance.
Why are location-based VR arcades important?
LBE venues introduce premium VR to consumers who lack space or budgets for home setups, driving commercial headset demand and trial adoption.
What is the main restraint holding back wider adoption?
Motion sickness causes refund rates above 25% for certain genres, limiting average session lengths and deterring newcomers.
Which region is expected to post the fastest growth
Asia-Pacific leads growth due to dense urban markets, widespread 5G, and rapid expansion of VR arcades and gaming cafés.
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