The global Virtual Reality (VR) segment, worth nearly USD 5 billion in 2020, will generate revenues of USD 51 billion by 2030, expanding at a compound annual growth rate (CAGR) of 27% over the 10-year period, according to GlobalData forecasts, made in its latest report, ‘Virtual Reality- Thematic Research’. While Virtual Reality is mostly related to gaming, it is gaining traction in areas such as social media and live streaming. Consumer-focused VR companies are striving for a new application that would make VR a mainstream hit. Meanwhile, VR headset makers are increasingly exploring growth among enterprises.
A GAMING-FOCUSED PRODUCT
Last year, SuperData market intelligence firm shared that, in 2020, VR game earnings jumped 25% year-over-year to USD 589 million. Another investigation, ‘Custom Consumer Research’, by Newzoo and Arm, considered influence of VR on United States’ gamers. Truly immersive VR experiences have always appealed to gamers. Even so, 17% of U.S. VR gamers surveyed (gamers who play VR games at least once a month) played VR on an all-in-one headset. Meanwhile, 30% played on console, 28% played on a mobile device, and 24% played on PC. As all-in-one headsets solidify themselves in the market, their market share will likely increase, bringing the U.S. games market one step closer to VR readiness.
Looking toward the future, enterprise and non-gaming sectors will probably drive the number of VR headsets on the market, leading to more studios developing VR software. The coming years hold much promise for virtual reality, but there are still some barriers to overcome before gamers in the U.S. and beyond fully embrace it. One of them is content. This offering will need to improve even further for VR to really land with consumers.
Rupantar Guha, Associate Project Manager, GlobalData, explained: “VR has been around for over six decades, in one form or another, but it is still not a mainstream technology. Both VR hardware and software have evolved significantly in recent years, but issues such as latency, high prices, privacy concerns and a dearth of compelling content have been preventing widespread adoption. While technologies such as 5G, cloud services and motion tracking are used to address latency issues, improving content and developing effective data privacy practices will be paramount for VR’s success.”