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‘Augmented reality and virtual reality for the gaming market’ The increasing adoption of the element of game design has led companies to be more productive in terms of innovative technologies and software leading to the growth of augmented reality and the virtual reality for the gaming market.
The Augmented reality and virtual reality market for games is expected to reach $ 11.0 billion by 2026, with a CAGR of 18.5% from 2021 to 2026. The market is driven by the growing popularity and integration of AR and VR technologies in mobile phones and other devices portable. Augmented Reality and Virtual Reality are believed to seamlessly deliver the most exciting emerging technologies on the planet for life today. Industries using AR and VR technologies are expected to reach the target valuation of over $ 1 trillion by 2025. However, AR has held a special place in the burgeoning world of mobile gaming. Almost 50% of the applications in the global gaming market show no signs of stalling because the handset which is integrated with the integrated camera which is an excellent source of augmented reality gaming. The growing demand for AR in mobile gaming as well as the wider gaming world will drive market growth through the use of headsets.
AR and VR for Gaming Market Segment Analysis – By Platform
In the platform segment, mobile phones were the fastest growing subset with an estimated 30% CAGR through 2020. These AR and VR technologies have always been associated with the gaming industry, due to various pop culture movies and shows that caused this association. . The use of augmented reality and virtual reality has gained the upper hand with the launch of head-mounted devices as well as augmented reality games on the mobile platform. In 2016, the release of Pokemon Go brought a lot of people out of their homes to interact and catch these “Pokemon”. This involved visiting rest areas like a cafe or shopping mall where collectibles could be purchased. Augmented and virtual reality is set to disrupt the gaming industry.
AR and VR for Gaming Market Segment Analysis – By Application Type
Augmented and virtual reality will have a huge impact on gaming. Augmented reality games have made their way into public places and several are location-based, although virtual reality games are limited to certain areas such as homes, offices, and parks because they are more immersive. To access games with augmented and virtual reality, gamers may need headsets, motion tracking sensors, or their AR / VR compatible cell phones. For those who use headsets, a PC with a high-end GPU will be required or a console. These games may offer non-VR and non-AR modes, for those who don’t want to buy the tech just yet. The proliferation of AR and VR games across all platforms is expected to drive the market. AR games hold the largest market share at 56.4% in 2020.
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AR and VR for Gaming Market Segment Analysis – By Geography
The North America region holds the largest market share in the in-game artificial intelligence market with 45% in 2020. However, APAC represents the highest growth of the AR and VR market in the gaming industry. The APAC gaming industry is expected to grow at nearly 26% CAGR due to the growing number of players in the region, especially in China and India. Japan will continue to play a major role in the augmented reality and virtual reality market, especially for the mobile and head-mounted display segments.
AR and VR for the engines of the gaming market
AR and VR amusement parks and new platforms
The AR and VR market is shifting from a purely mainstream market to a more commercial segment. The costs of operating the technology have allowed theme and amusement parks to keep one or two virtual rides in their park, but once the market hits saturation, virtual reality parks can become a trend. once the availability of technology is more feasible for fleet owners. More and more companies could start designing apps specifically for fleet vendors. This new platform has resulted in increased demand for AR and VR in the gaming industry, outside of mainstream applications.
Lower prices for VR headsets
One of the limiting factors of VR headsets is the high cost. However, in recent years the price has dropped significantly. This situation is exacerbated by the various developments in the industry. Companies such as NVIDIA, Oculus, AMD and Microsoft have formed a consortium to make virtual reality headsets affordable and accessible to a larger portion of the population. The potential drop in prices should increase buying and these companies should reap the first benefits. The formation of the consortium as well as general technological developments have caused prices to drop significantly.
AR and VR for the challenges of the gaming market
Lack of knowledge of AR content
The biggest challenge for AR is the lack of consumer awareness of AR content. AR and VR content can come in many forms, which can be confusing. There is still not much clarity on whether consumers are aware that these tools are available to them, or whether they realize that they are engaging with AR or VR when using them. In a recent study conducted by GWI in the UK and US, we found that over 90% of consumers in these markets are familiar with VR, and around 65% say they are aware of augmented reality. Awareness of AR oscillates between 70 and 75% among 16-44 year olds, but drops considerably among 45-54 year olds (56%) and 55-64 year olds (44%). By gender, men (71%) have a significantly higher level of knowledge of AR than women (59%). This has resulted in a limited focus on the AR market.
Product launches, acquisitions and R&D activities are key strategies adopted by players in the AR and VR market. Niantic, Sony, Valve, Ubisoft, Next Games, Ludia Inc, Six To Start, esDot, and various other companies are considered to be the major players in the AR and VR games market.
Acquisitions / Technology launches / Partnerships
In June 2021, Facebook acquired VR game developer BigBox VR for an undisclosed amount.
In June 2019, Niantic acquires Seismic Games and Escher Reality, in order to upgrade their AR offerings. Some games come with very similar elements, and the company is taking steps to innovate with potential features like multiplayer or cross-platform. Competitors may already be testing these new features in games that have yet to be released.
Key points to remember
AR and VR technologies have transformed the gaming industry in an unmistakably distinguished way. Augmented and virtual reality is developing at a rapid pace in a world dominated primarily by electronic devices such as cell phones and tablets.
Now that the combination of AR and VR has dramatically raised expectations, many gaming giants around the world such as NVIDIA and Sony are investing heavily in the research and development of AR and VR technologies to meet those expectations.
The increasing adoption of the element of game design has led companies to be more productive in terms of innovative technologies and software. This is considered to be the main driver of the market.
The increasing availability of headsets supporting AR and VR technologies is expected to accelerate growth during the forecast period.
The newly launched location-based augmented reality game -Pokemon GO became a huge success overnight and was downloaded over 80 million times in the first month of its launch.
Crowdfunding by start-ups to develop nascent apps and devices is now seen as the major trend that lasts for some time.
A. Global Online Gaming Market
B. Serious games market
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