“Market research analysts at Technavio predict that the global virtual reality (VR) in gaming market will grow steadily during the next four years and post a tremendous CAGR of more than 84% by 2020,” the report summary said. “This market research analysis identifies the increasing awareness of VR technology as one of the primary growth factors for this market.”
The report predicts America will be the major source of revenue for the VR gaming market, citing increased awareness and growth brought on by companies such as Google, Samsung and Sony.
“The adoption of VR technology by tech giants such as Sony and Microsoft and the presence of companies such as Apple and Google that have a large user base in the mobile gaming segment will fuel the growth of the market in this region,” the report summary said.
According to the report, the price of VR devices and components will also decline due to the investment of major corporations like Google.
“Product pricing comes as major factor for the growth of a vendor and the introduction of low-cost VR devices by tech giants such as Google, will intensify the market’s competitive environment,” the report summary said.
And although the hardware sector of the VR gaming market is currently the largest, the report claims gaming software will soon overtake the hardware sector within the next four years.
“Though the hardware segment currently dominates the market, the increased awareness among the customers about VR technology will result in the rise in sales of virtual reality games and apps, subsequently driving the growth of the market segment,” the report summary said.
Further, it will be PC-based games that will continue to dominate the VR gaming market between 2016-2020, according to the report.