According to a new report by Ken Research, the global market for virtual reality (VR) videogames will continue to grow over the next five years, at a CAGR of over 50% until 2022. This follows similar reports that forecast continued growth in the immersive technology industry.
The continued growth rate is expected to be driven by VR arcades and location-based VR centres as well as smartphone-based mobile VR titles.
The report said that the USA generated the highest revenue in the area of VR videogames, in comparison to other countries, likely owing to higher levels of disposable income and demand for advanced technology.
As VR technology becomes more commonly adopted in other countries the market share of the US is expected to fall, but the number of consumers engaged with VR in the US will continue to rise.
Also forecast in the report is that the mobile VR segment will see the highest growth in the devices segment, due to its portability and relatively low cost, especially when the declining price of high-end smartphones is taken into consideration.
The share of mobile gamers of the total VR videogamer userbase is expected to rise to 40% by 2022, whereas console and PC VR users would have a 32% and 28% share respectively. This may be affected by the planned launch of new VR products and services, such as upcoming VR software launches.
The expected increase in the number of VR arcades and location-based VR centres will have a positive impact on the VR market according to the report, with customers who experience VR experiences at these centres more likely to buy their own VR equipment.
The report predicts that the VR market will need to be cautious about introducing technology upgrades in order to sustain the market and maintain its market share against augmented reality (AR) and mixed reality (MR) products and services.
For future news on trends in the VR industry, keep checking back with VRFocus.