Over the last few years with the introduction of immersive technologies like Augmented Reality (AR) and Virtual Reality (VR), all the aspects of life have transformed at a quick pace. In the gaming market, these technologies have revolutionized the user experience and brought out the things that once looked only fictional or impossible.

People around the world have always been into games, whether it was playing video games with TV, mobile games, or Playstations. Today, everybody has access to smartphones and that’s where most of the games are played. While all the modern technologies have changed things across various industries, the impact AR and VR have made on the gaming industry is vital. 

New AR and VR trends are being revealed every year, and the gaming market is now rapidly shifting to experiences based on augmented and virtual reality. 

As per the research by NewGenApps, by 2025, there will be more than 216 million users of AR- and VR-based games around the world.

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Source: Statista

“According to the “Global Virtual Reality in Gaming Market” report by ResearchAndMarkets.com, the value of the VR gaming market was $7.7 billion in 2019. By 2025, the value of this market will reach $42.50 billion, witnessing a CAGR of more than 32% from 2020 to 2025.”

What is Augmented Reality (AR)?

AR is one of the most creative and immersive technologies ever produced. This technology has the potential to stun users once they interact with an augmented environment. AR creates an artificial environment around the user by combining it with gaming visuals and audio content. The experiences are created in real-time that deluge the users. 

The AR-powered gaming environments can be experienced even on smartphones or tablets, which make this technology accessible to all. The first AR gaming experience was seen in 1998 with the football game. 

Along with the gaming market, AR technology is also having a huge impact on other industries, including e-commerce, healthcare, automotive, and education

What is Virtual Reality (VR)?

VR technology creates a simulated environment in the three-dimensional (3D) form. The 3D experiences are similar to the user interface of the screen, giving a real-life feel of the artificial things. Along with the look and feel, the VR technology also stimulates vision, hearing, as well as smell. 

To stimulate virtual environments, VR uses CAVE automation using wearables like VR headsets. It’s a game-changing technology for every industry, especially the gaming one.

Related Blog: What will be the Cost to Develop a Virtual Reality App?

It enables a transformative version of the traditional UIs (user interfaces). It provides attractive visuals, user experience, and the possibility to play favorite games in real life. No wonder why it is one of the hottest trends in the gaming market today. 

Following are the main trends and predictions for AR & VR gaming market to expect from 2020 to 2025:

1. AR & VR to become as mainstream as smartphones

By the year 2025, these immersive technologies will become a norm among the users, the way smartphones and computers are today. This trend is going to be the most applicable to the gaming industry, followed by healthcare, manufacturing, and education.

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The year 2021 will be the first year of a new decade of the 21st century, and this year will show the enormous potential of VR and AR technologies. Recently, Elon Musk (the CEO of SpaceX) announced a VR-based live stream of a moon mission. Musk’s company is not only focusing on using these immersive technologies for space but also to bring the same to the community. 

Since the technology is new yet and is expensive enough to reach everyone, the tech giants will be investing heavily in VR-based game app developer and augmented reality app development to optimize the costs of devices that enable immersive experiences.

AR is going to change everything,” says Apple CEO Tim Cook. 

That is the reason behind the development of the ARkit framework for iOS devices. iPhone users will be able to experience augmented reality and motion features in their games and apps using the ARkit.

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Over the next five years, the pricing of AR and VR products will be way cheaper than that of today so that every mobile device user can access these.

2. Reduction in device size, with more power

Undoubtedly, the production amount of AR and VR devices will significantly increase over the years. Today, a limitation of using these technologies is that there is a need for additional headsets and display screens, especially with VR. To produce high-quality and real-looking graphics, it needs powerful hardware that can process those graphics seamlessly. 

With time, the headsets and devices needed for VR/AR processing will get more powerful, along with being cost-effective. Furthermore, the size of these devices will become smaller as compared to today. The quality of experiences produced using these devices will also improve significantly to offer a more realistic feel of the world. 

For instance, in the starting, the Oculus headset by Facebook required a connection with a powerful computer for operation. This has changed now. The new version of Oculus is lighter and doesn’t require high power.

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By 2025, there will be headsets and devices powered by these mixed reality technologies that wouldn’t even need to be connected to a PC or smartphone. There will be completely independent hardware for immersive experiences. 

One example of such an advanced breakthrough is the forthcoming AR/VR glasses by Apple that will come with 8K quality graphics. There will be no need for tethering with smartphones or computers.

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This step by the tech giant will bring these technologies to everyone, the way it did with its iPhone. Of course, other tech biggies like Microsoft and Amazon are also working on VR app development to make these immersive technologies affordable and accessible to all.

3. New possibilities with 5G

The forthcoming 5G network will bring super-fast internet speed which will further uplift the potential of AR and VR in the gaming industry. The 5G network will offer an internet speed of up to 3 gigabits per second (Gbps), compared to today’s average internet speed of 100 megabits per second (Mbps). This means that the devices and headsets powered by AR and VR will be able to fetch data instantly from the cloud and data centers of the service providers.

The gaming data will be uploaded and downloaded within milliseconds to the cloud and all the heavy processing will be done in no time. This also means that there wouldn’t be a need for additional hardware for data processing. The images and videos that need rendering, will be done and delivered back to the user in real-time. 5G speed will be a boon for these immersive technologies and the augmented reality gaming market.

Combining the power of cloud and 5G, the limitations to offer an enhanced user experience will no longer be an issue. Everything will be processed faster with a low-bandwidth and lighter environment. This will be another reason behind the development of cost-effective headsets and devices.

4. Rise of new players in the market

As AR and VR technologies start to become mainstream, new enterprises and start-ups would emerge, offering a wide range of headsets and devices with better experiences. There will be new ideas, new games, and apps, as well as better UX. No doubt, the competition in the augmented reality gaming market will significantly increase, similar to what’s being witnessed now in the smartphone space.

New amusement and theme parks will also open leveraging augmented and virtual reality. This will become a trend across the world. Start-ups and enterprises will come up with augmented reality mobile app development solutions to serve the new trend in more innovative ways.

5. Acquisitions and business transformation

According to Lumus, video games will generate the highest revenue ($11.6 billion) in the AR market by 2025. A lot of large enterprises and tech companies will see the potential of the augmented reality gaming market and transform them to adopt the trend. They will include essential solutions to their portfolio and acquire the emerging start-ups in the AR and VR industry. Along with acquisitions, new partnerships and collaborations might also be on the cards.

For example, in the second quarter this year, Canada-based video games developer Archiact teamed up with Migu (a subsidiary of China Mobile) to bring its VR/AR games to Migu’s cloud gaming platform. 

“Widespread distribution of 5G networks and cloud gaming will usher in a new era of unparalleled access to virtual reality,” said Archiact CEO Frank on the partnership. 

Wrapping up

The above-mentioned are some of the top AR and VR trends in the gaming market, which we believe would rule the next five years. The immersive gaming experience will become the norm. The arrival of 5G networks and new players in the market will only add to the drama. The headsets and devices will become cheaper with the advancements in the technology. Also, we will witness the rise of new Android or iOS mobile apps that are based on mixed reality. Get custom website development services at affordable prices with us.

A lot is still awaited. What are your views on the rise of virtual reality and augmented reality, and the latest trends? Share your views in the comments section. And for any queries, Get in touch with our experts.

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Project Manager

Priyank Sharma is a tech blogger passionate about the intersection of technology and daily life. With a diverse tech background and a deep affection for storytelling, he offers a unique perspective, making complex concepts accessible and relatable.

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