Augmented reality (AR) gaming is the real-time integration of the audio and visual content of a game with the gamer’s environment. AR gaming connects the real world of the gamer with the virtual world of the game. AR works in four stages. In the first stage, some part of the environment is captured by AR solution with cameras mounted on devices such as tablets and smartphones.
In the next stage, the captured environment is scanned to locate the point to overlay the information. In the third stage, the predefined content is requested by the AR solution to overlay the captured environment with the additional information. In the last stage, the AR solution builds a combined image of virtual data in the background of the real world.
The AR gaming market is expected to grow in the upcoming years, as the AR systems are cheaper and the availability of AR headset and handsets is increasing. The growing demand for AR games is forcing developers to improve gaming techniques. With the help of device manufacturers and technology providers, AR gaming is providing innovative solutions, which is driving the demand for the AR gaming headset and handsets.
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The COVID-19 has introduced new concepts, such as social distancing and quarantine, to our lives. In such scenarios, gaming acts as a way of interaction with the quarantined people and looking for social interaction, as gaming is at-home activity.
During the lockdown, the number of active players has increased significantly. The major player of Asia, such as Tencent and Nintendo, witnessed an increased sale during the lockdown. The games launched during the pandemic are also doing great. The increasing engagement of the gamer is another factor driving the growth of AR gaming headsets and handsets.
The cost of an AR gaming setup with better quality is higher, and the equipment is also costlier, which makes it difficult for ordinary people to own the AR gaming system. The cost of the AR gaming setup is increased due to the number of hardware components required, which include digital cameras, gyroscopes, accelerators, GPS, RFID, and many wireless sensors.
Along with this, the consumer also needs input devices such as microphones, gesture devices, and body wears, etc. Therefore, due to this initial cost, the growth of AR gaming is being restrained.
It has been noticed that the gamers are spending more time on the same game rather than playing various games. In recent years many companies have provided monthly subscriptions for the games. Companies other than the established player are also entering the market with subscription games. Recently the Twitch was acquired by Amazon to developed Twitch Prime. The platform gives access to games, and it also allows people to watch games played by other gamers.
Similarly, Google is also proving the platforms for the gamers, which will allow them to connect any device such as TV, tablets, etc., with the internet and play games. These innovations will lead to the upgradation of hardware components required for AR gaming, including headsets and handsets. This will create opportunities for not only the established player but also for the new market entries.
The global multiplayer AR gaming headset and handsets market has been analyzed across four key regions – North America, Europe, Asia-Pacific, and LAMEA. Among all countries across regions, the U.S., Canada, and Mexico dominate the market, contributing more than 1/3rd of the total revenue generated in 2018.
In addition to this, North America has major market players and has increased the shipments of the AR systems. In the years from 2015 to 2018, the region increased the investment in AR technology. North America is witnessing the rise in AR startups, and enterprises are also increasing the spending in AR, which is inclined to grow the regional market.
Asia-Pacific is anticipated to expand the CAGR in the upcoming years. China is expected to grow the regional market with the rise in the availability of AR apps. China has been increasing the investment in R&D programs in recent years. According to the U.S. Defense Innovation Unit (DIU), in the period from 2010 to 2017, the China investors had participated in deals that worth more than USD 2.1 billion.
Based on product type, the AR system is segmented into three types, Standalone AR System, Tethered AR System, and Smartphone enabled AR System. The tethered AR system was the first system introduced in AR gaming.
In 2018, the standalone AR system contributed more than 1/3rd of the total market revenue share. The technology contains LCoS technology cameras, optical see-through, and near-eye display, which enables the standalone AR system to deliver the best experience without taking the assistance of any system or smartphone. The standalone AR system uses various sensors such as microphones, imaging sensors, and other sensors. The immerging use of low-price sensors is most expected to reduce the price of the overall system in the upcoming years.
Based on the application, the market is segmented into two main categories PC gaming and Console gaming. The console gaming segment dominated the market in the year 2016. Due to the advantages such as high-end display and better sound quality, the consumer experience is improved than the PC gaming. In recent years, the number of active gamers has increased rapidly, which is one of the most important driving factors improving the growth of console gaming AR systems.
As per Nielsen, more than 60% of the total population of the U.S. are gamers. There were more than 2 billion active gamers across the world in the year 2017, and the number is expected to grow even more in upcoming years. Subscription-based gaming is being appreciated by the developers, which are also improving the growth of console gaming. On some games, PlayStation Plus and Xbox live to provide a monthly subscription to the gamers. In the year 2017, Microsoft released the Game-Pass for the first-party games.
The PC games segment is also expected to grow due to the introduction of cross-platform gaming. Cross-platform gaming allows the gamer to play the same game from different platforms. PC gaming helps the gamer with more visibility and controls console gaming.
COVID-19 has affected the global economy by directly affecting production and demand, creating supply chain and market disruption, and financially impacting firms and financial markets. The gaming industry has seen huge growth, the hardware and devices have witnessed an initial drop due to the COVID-19. Many of the market players faced a delay in the manufacturing of AR headset and handset for a long time, which resulted in a huge drop in demand in AR gaming systems. Especially the manufacturer from China witnessed a delay in the production that impacted the cost and revenue. The key players of the market are expected to fill the game in the nearer future. However, the new players in the market are inclined to have great opportunities globally, as the online market of AR gaming is growing rapidly.