GVR Report cover Gaming Simulator Market Size, Share & Trends Report

Gaming Simulator Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Game Type (Racing, Shooting), By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Nov, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-227-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global gaming simulator market size was valued at USD 4.04 billion in 2019. It is expected to expand a compound annual growth rate (CAGR) of 12.1% from 2020 to 2027. Initiatives being pursued by the market players to implement virtual reality to ensure real-life gaming experiences for gamers are expected to drive the market expansion. The growing adoption of gaming simulators for training and analysis in various industries and industry verticals is also expected to contribute to market growth. The use of gaming simulators as potential stress busters also bodes well for the growth. The demand for gaming simulators is growing as gamers are increasingly preferring immersive and realistic games. Gaming simulators hold the potential to cater to these changing preferences of gamers. At the same time, new platforms are also being launched to introduce new and innovative games. This is prompting the market players to develop advanced gaming simulators. For instance, in March 2019, Next Level Racing launched F-GT Lite, a portable racing cockpit that offers real-life Formula or GT racing experience.

U.S. gaming simulator market size, by game type, 2016 - 2027 (USD Million)

Continued implementation of the latest technologies, including Virtual Reality (VR), in gaming simulators to offer real-life gaming experiences is anticipated to open new opportunities for the market players over the forecast period. Having realized that the young generation remains keen on trying out advanced games featuring rotating platforms and 360-degree cameras, vendors have started offering portable gaming setups. For instance, in September 2017, Roto VR Ltd. launched Roto VR Chair at the VR Summit convened in Seoul, South Korea. Roto VR Chair happens to be a motorized chair that can auto-rotate to facilitate 360-degree viewing.

The number of gaming zones offering a better gaming experience using gaming simulators is also growing. At the same time, several e-sports championships being organized in different parts of the world are also attracting gamers. Market players are responding to the situation by providing innovative gaming simulators for gaming zones as well as for e-sports championships. For instance, in September 2019, Next Level Racing provided 20 units of GTultimate cockpits for the Toyota Velocity Esports Championship convened in Malaysia. The continued rollout of high-speed internet networks and the rising popularity of network sharing and cloud computing are also playing a crucial role in driving the demand for gaming simulators.

However, the high prices of gaming simulators are anticipated to restrain the growth of the market to a certain extent. Manufacturers of gaming simulators typically rely on third-party component providers for the supply of sensors and micro-controllers and third-party distributors and sellers for offering their products across the globe. At this juncture, any interruption or shortage in the supply of components, inability to procure components from alternate sources at affordable prices, disruptions in the operations of distributors and sellers, and disagreements with the distributors and sellers over the business terms can potentially challenge the growth of the market. The COVID-19 pandemic is taking its toll on the manufacturing and supply of gaming simulators as manufacturing facilities are shut due to the lockdowns being enforced in various parts of the world to arrest the spread of the disease. All these factors are expected to restrain the growth of the market over the forecast period.

Component Insights

The hardware segment dominated the market in 2019 with a revenue share of over 55%. Hardware components play a vital role in improving the gaming experience. The growing popularity of virtual reality headsets, which help in improving the gaming experience, is expected to encourage market players to develop advanced gaming simulator hardware. Based on components, the market has been segmented into hardware and software.

Gaming simulator hardware manufacturers are investing aggressively in advertising and marketing to promote their gaming simulators and components. These marketing campaigns, which allow the companies to create awareness about hardware components among users, are expected to contribute to the growth of the hardware segment over the forecast period. Market players are particularly focusing on developing advanced and cost-effective hardware components that can help in improving the gaming experience. For instance, in January 2020, Logitech launched Logitech G29, a racing wheel accessory that can enhance the racing game experience.

Game Type Insights

The racing segment dominated the market with a share of over 55% in 2019. Rising adoption of virtual training solutions for racing drivers to improve their driving skills is anticipated to drive the demand for racing simulators over the forecast period. Advances in visualization through multi-screen displays and VR-enabled displays would also play a decisive role in driving the demand for racing simulators. Based on game type, the market has been further segmented into shooting, fighting, racing, and others.

The growing demand for lightweight and compact racing simulators and initiatives being pursued by manufacturers to respond favorably to the changing gamers’ preferences particularly bodes well for the growth of the racing segment over the forecast period. For instance, in January 2019, Arozzi North America launched a race driving simulator called Velocità Racing Simulator at the Consumer Electronics Show (CES) 2019. Velocità Racing Simulator is a compact and lightweight simulator featuring a steering wheel, gear shift, and pedals. It is compatible with any gaming chair. 

End-use Insights

The residential segment dominated the market with a share of over 59% in 2019, as the popularity of gaming among individuals continued to increase. The growing demand for advanced gaming simulators for a better gaming experience is expected to drive the growth of the residential segment over the forecast period. The introduction of features such, as gesture-based gaming, and high-quality graphics to enhance the gaming experience are also expected to contribute to the growth of the residential segment. Based on end-use, the market has been further segmented into commercial and residential.

Europe gaming simulator market share, by end use, 2019 (%)

The commercial segment is anticipated to witness significant growth over the forecast period. While gaming hubs would play a crucial role in driving the demand for gaming simulators, the gaming championships being organized in various parts of the world are also expected to trigger the demand for gaming simulators and contribute to the growth of the commercial segment. Various sports event organizations are partnering with manufacturers of gaming simulators to offer immersive virtual practicing and playing experience to the gamers. For instance, in January 2020, PGA TOUR, Inc. announced a partnership with Full Swing Golf, a provider of residential and commercial golf simulators. The partnership envisages PGA TOUR, Inc. offering an off-course golf experience to the gamers through the golf simulator developed by Full Swing Golf.

Regional Insights

North America dominated the gaming simulators market in 2019 with a share of over 35%. North America is home to some of the major market players, such as D-BOX TECHNOLOGIES INC.; CXC Simulations; and Razer Inc.; among others. The introduction of racing platforms at various theaters in North America to support motorsports and e-sports is also anticipated to drive the demand for gaming simulators in the region. For instance, in April 2018, VRX partnered with NAGRA to develop the SIM racing program in theaters using the myCinema platform.

The increasing number of e-sport tournaments organized in North America is anticipated to drive the demand for gaming simulators in the region. For instance, in June 2019, VRX installed racing simulators at an e-sports hub called ESPORTS CENTRAL in Montreal, Canada. The growing popularity of online games and the availability of custom-made gaming simulators is further expected to propel the growth of the regional market. Changing consumer trends, such as the rising preference for simulator-based video games as compared to other entertainment platforms, also bodes well for the growth of the North American regional market.

Key Companies & Market Share Insights

Major market players are pursuing various initiatives, including new product development, mergers & acquisitions, and strategic partnerships and agreements, to cement their foothold in the market. For instance, in August 2019, Next Level Racing launched an affordable and high-quality Challenger Simulator Cockpit. The cockpit is used for racing and flight simulation. The cockpit is available for USD 349 in North America, EUR 349 in Europe, AUD 499 in the Asia Pacific, GBP 299 in the U.K.

Contract manufacturers are supporting market players in increasing their internal manufacturing capacity and overcoming the volatility in production volumes. A combination of in-house manufacturing and contract manufacturing is allowing market players to leverage economies of scale and effectively respond to the changing demand for gaming simulators. Market players are also investing aggressively in developing new and improved versions of gaming simulators to improve the gaming experience. For instance, Logitech invested USD 177.6 million in research & development in 2019 to develop advanced technologies and introduce new products. Some prominent players in the global gaming simulators market include:

  • 3D Perception

  • AeonSim

  • CKAS Mechatronics Pty Ltd.

  • CXC Simulations

  • D-BOX TECHNOLOGIES INC.

  • Eleetus

  • Hammacher Schlemmer & Company, Inc.

  • Play seat B.V.

  • RSEAT Ltd.

  • Vesaro

Gaming Simulator Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 4.49 billion

Revenue forecast in 2027

USD 9.99 billion

Growth rate

CAGR of 12.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, game type, end-use, and region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil

Key companies profiled

3D Perception; AeonSim; CKAS Mechatronics Pty Ltd.; CXC Simulations; D-BOX TECHNOLOGIES INC.; Eleetus; Hammacher Schlemmer & Company, Inc.; Play seat B.V.; RSEAT Ltd.; Vesaro

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global gaming simulator market report based on component, game type, end-use, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Hardware

    • Software

  • Game Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Shooting

    • Fighting

    • Racing

    • Others

  • End-use Outlook (Revenue, USD Million, 2016 - 2027)

    • Residential

    • Commercial

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • The Middle East & Africa (MEA)

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