Gaming Simulation Market Expected to Reach $20.76 Billion by 2030

According to a recent report published by Allied Market Research, titled, “Global Gaming Simulation Market by Component, Game Type, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global gaming simulation market size was valued at $4.86 billion in 2020, and is projected to reach $20.76 billion by 2030, growing at a CAGR of 15.2% from 2021 to 2030.

Gaming simulation is a platform, which is used to offer digital immersive user experience that can be used for entertainment and business applications among various industry verticals. In addition, gaming simulation is a computer-generated 3D environment, which completely immerses end users in an artificial world without seeing the real world. Moreover, gaming simulation applications enable developers to integrate contextual or digital content with the real world in real time. These are the major factors that boost the adoption of the gaming simulation technology. Furthermore, the key factor that drives the gaming simulation market growth includes increase in penetration of digital & non-digital educational games, game-based learning, and web-based simulation games. In addition, rise in acceptance of 360-degree camera as next-generation technology across developing nations positively impacts growth of the market. However, security and privacy issues associated with VR headsets and high cost of VR headsets hamper the market growth. On the contrary, adoption of AI and cloud computing for better experience and increase in collaboration between entertainment industry and gaming simulator companies across the globe are expected to offer remunerative opportunities for expansion of the gaming simulation market during the forecast period.

Depending on end user, the residential segment dominated the gaming simulation market share in 2020, and is expected to continue this trend in the upcoming years. The major factor that drive the growth of the residential segment include rise in demand for advanced gaming simulators for a better gaming experience among the younger generation. However, the commercial segment is expected to witness significant growth rate during the forecast period, owing to surge in need of simulator among various industries for training employees and predicting various types of risk.

Region wise, the gaming simulation market was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to growing real-life simulator games that offer digital immersive user experience and are mainly used for entertainment and business applications among various industry verticals. In addition, gaming simulators provide highly realistic video games, where cars, people and nearly every object obey the laws of physics and replicates a real-life production, which in turn drives the growth of the market. However, Asia-Pacific is expected to observe highest growth rate during the forecast period, owing to continual implementation of modern technologies, such as virtual reality (VR), 360 degree displays, in gaming simulators in order to give real-life gaming experiences to the end user. In addition, various key players of the market are introducing new generation gaming games featuring 360-degree cameras, revolving platforms and others for improving their market value and to upsurge their revenue opportunity which is driving the growth of the market.

The COVID-19 pandemic has led to a significant increase in the revenue of gaming simulation market, due to shutdown of various outbound online games and entertainment places across globe. Rise in the adoption of online gaming during this global lockdown and surge in adoption of simulators across various industries drive the growth of the market. In addition, various manufacturing units are adopting gaming simulation devices for providing training to their employees on critical tasks and to reduce physical contact during the pandemic, which propels the growth of the market.

Moreover, rise in demand for residential equipped simulators in logistics activities across the globe is positively impacting the growth during the COVID-19 pandemic. Various simulator manufacturers and providers have started adopting online delivery to efficiently deliver and install the simulation setup with various safety precautions such as N-95 masks and other safety suits for protecting both the employees and the customers, which, in turn, is further propelling the growth of the market.

Key Findings Of The Study

• By component, the hardware accounted for the largest gaming simulation market share in 2020.
• Region wise, North America generated highest revenue in 2020.
• Depending on game type, the racing segment generated the highest revenue in 2020.

The key players profiled in the gaming simulation market report are 3D Perception, CKAS Mechatronics Pty Ltd., CXC Simulations, D-Box Technologies Inc., Eleetus, Hammacher Schlemmer & Company, Inc., Play seat B.V., Rseat Ltd., Sony Interactive Entertainment Inc., and Vesaro. These players have adopted various strategies to increase their market penetration and strengthen their position in the gaming simulation industry.